McEwen Mining Inc. (MUX): A Great Stock For Handling Current Market Conditions?


BlackRock Fund Advisors recently announced the acquisition of new stake in McEwen Mining Inc. (NYSE:MUX). The institutional investor has increased its shareholding in the Basic Materials company by 5.02% to 8.36 million shares with purchase of 0.4 million shares. This fresh investment now brings its stake to 2.09% valued currently at $11.53 million. In addition, Global X Management Co. LLC raised its holdings by 1.27 million to 6.23 million shares. And The Vanguard Group, Inc. has lifted its position by 5.30% or 0.29 million shares – to 5.67 million shares.

With over 2.72 million McEwen Mining Inc. (MUX) shares trading Monday and a closing price of $1.26 on the day, the dollar volume was approximately $3.43 million. The shares have shown a positive weekly performance of 4.13% and its price on 08/31/20 lost nearly 0.00%. Currently, there are 400.51M common shares owned by the public and among those 318.08M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 3 analysts who have offered their price forecasts for MUX have a consensus price objective of $2.32. The analysts have set the share’s price value over the next 12 months at a high of $2.75 and a low of $1.70 should the stock experience a downside. Incidentally, analysts’ outlook for the McEwen Mining Inc. stock is 2.00 for the next 12 months. But an upside of 54.18% will see the stock hit the forecast high price target while mean target price for the stock is $2.50.

Insiders at the company have transacted a total of 6 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 6 of these insider trades were purchases, accounting for 6,191,700 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

The top 3 mutual fund holders in McEwen Mining Inc. are VanEck Vectors – Junior Gold Mine, Global X Silver Miners ETF, and Vanguard Extended Market Index Fu. VanEck Vectors – Junior Gold Mine owns 16.79 million shares of the company’s stock, all valued at over $23.17 million. The company bought an additional 0.22 million shares recently to bring their total holdings to about 4.19% of the shares outstanding. Global X Silver Miners ETF bought 0.1 million shares to see its total holdings expand to 7.52 million shares valued at over $10.37 million and representing 1.88% of the shares outstanding. Vanguard Extended Market Index Fu sold -0.12 million shares to bring its total holdings to over 4.62 million shares at a value of $6.38 million. Vanguard Extended Market Index Fu now owns shares totaling to 1.16% of the shares outstanding.

Shares of McEwen Mining Inc. (NYSE: MUX) opened at $1.28, up $0.02 from a prior closing price of $1.26. However, the script later closed the day at $1.26, down 0.00%. The company’s stock has a 5-day price change of 4.13% and 29.86% over the past three months. MUX shares are trading -0.79% year to date (YTD), with the 12-month market performance down to -37.93% lower. It has a 12-month low price of $0.53 and touched a high of $2.10 over the same period. Currently, 2.72 million shares have been traded, compared to an average intraday trading volume of 4.82 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.34%, 5.30%, and 17.32% respectively.

Institutional ownership of McEwen Mining Inc. (NYSE: MUX) shares accounts for 19.10% of the company’s 400.51M shares outstanding. Mutual fund holders own 21.09%, while other institutional holders and individual stakeholders account for 5.30% and 12.32% respectively.

It has a market capitalization of $487.00M and a beta (3y monthly) value of 0.91. The earnings-per-share (ttm) stands at -$0.40. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.70% over the week and 6.93% over the month.

Analysts forecast that McEwen Mining Inc. (MUX) will achieve an EPS of -$0.03 for the current quarter, -$0.02 for the next quarter and $0.07 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.04 while analysts give the company a high EPS estimate of -$0.03. Comparatively, EPS for the current quarter was -$0.03 a year ago. Earnings per share for the fiscal year are expected to decrease by -24.10%, and 120.60% over the next financial year.

Looking at the support for the MUX, a number of firms have released research notes about the stock. B. Riley FBR stated their Buy rating for the stock in a research note on September 10, 2019, with the firm’s price target at $4.20. ROTH Capital coverage for the McEwen Mining Inc. (MUX) stock in a research note released on December 11, 2017 offered a Buy rating with a price target of $3.25. H.C. Wainwright was of a view on June 29, 2015 that the stock is Buy, while H.C. Wainwright gave the stock Buy rating on April 20, 2015, issuing a price target of $1.25. Stifel Nicolaus on their part issued Buy rating on February 08, 2013.


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