Platinum Group Metals Ltd. [AMEX: PLG] stock went on a downward path that fall over -4.48% on Tuesday, amounting to a one-week price decrease of less than -7.55%. The company report on December 9, 2020 that Platinum Group Metals Ltd. Closes Non-Brokered Private Placement with Largest Shareholder.
Vancouver, British Columbia and Johannesburg, South Africa–(Newsfile Corp. – December 8, 2020) – Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) (“Platinum Group” or the “Company”) reports closing of a non-brokered private placement of common shares at price of US$2.23 per common share as previously announced by the Company on December 1, 2020. An aggregate of 1,121,076 common shares were subscribed for and issued to existing major beneficial shareholder, Hosken Consolidated Investments Limited (“HCI”) through its subsidiary Deepkloof Limited, resulting in gross proceeds to the Company of US$2,499,999.48 (the “Private Placement”). Closing of the Private Placement allows HCI to maintain the greater than 31% interest in the Company that they held prior to the at-the-market offering completed by the Company on December 1, 2020.
The Company intends to use the net proceeds of the Private Placement for its share of pre-development costs on the Waterberg Project in South Africa, partial debt repayment and general corporate and working capital purposes.
Over the last 12 months, PLG stock rose by 237.93%. The one-year Platinum Group Metals Ltd. stock forecast points to a potential upside of 29.6. The average equity rating for PLG stock is currently 2.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $366.67 million, with 63.70 million shares outstanding and 49.64 million shares in the current float. Compared to the average trading volume of 2.01M shares, PLG stock reached a trading volume of 2514222 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Platinum Group Metals Ltd. [PLG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PLG shares is $6.96 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PLG stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
CIBC have made an estimate for Platinum Group Metals Ltd. shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on June 27, 2016. While these analysts kept the previous recommendation, BMO Capital Markets raised their target price to Outperform. The new note on the price target was released on June 07, 2013, representing the official price target for Platinum Group Metals Ltd. stock. Previously, the target price had yet another raise from $1.50 to $1.75, while RBC Capital Mkts kept a Outperform rating on PLG stock.
The Average True Range (ATR) for Platinum Group Metals Ltd. is set at 0.52
PLG Stock Performance Analysis:
Platinum Group Metals Ltd. [PLG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.55. With this latest performance, PLG shares gained by 132.23% in over the last four-week period, additionally plugging by 255.07% over the last 6 months – not to mention a rise of 237.93% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PLG stock in for the last two-week period is set at 63.57, with the RSI for the last a single of trading hit 60.43, and the three-weeks RSI is set at 64.65 for Platinum Group Metals Ltd. [PLG]. The present Moving Average for the last 50 days of trading for this stock 2.77, while it was recorded at 5.07 for the last single week of trading, and 1.99 for the last 200 days.
Insight into Platinum Group Metals Ltd. Fundamentals:
Return on Total Capital for PLG is now -16.33, given the latest momentum, and Return on Invested Capital for the company is -41.96. Additionally, PLG Total Debt to Total Capital is recorded at 223.01, with Total Debt to Total Assets ending up at 98.21.
Platinum Group Metals Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.40.
PLG Stock EPS
With the latest financial reports released by the company, Platinum Group Metals Ltd. posted 0/share EPS, while the average EPS was predicted by analysts to be reported at -0.08/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 100.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PLG.
Platinum Group Metals Ltd. [PLG] Insider Position Details
There are presently around $114 million, or 27.40% of PLG stock, in the hands of institutional investors. The top three institutional holders of PLG stocks are: LIBERTY MUTUAL GROUP ASSET MANAGEMENT INC. with ownership of 10,133,503, which is approximately 0% of the company’s market cap and around 2.50% of the total institutional ownership; FRANKLIN RESOURCES INC, holding 9,866,577 shares of the stock with an approximate value of $48.35 million in PLG stocks shares; and CQS (US), LLC, currently with $4.33 million in PLG stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Platinum Group Metals Ltd. stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 11 institutional holders increased their position in Platinum Group Metals Ltd. [AMEX:PLG] by around 281,892 shares. Additionally, 8 investors decreased positions by around 2,285,669 shares, while 10 investors held positions by with 20,752,826 shares. The mentioned changes placed institutional holdings at 23,320,387 shares, according to the latest SEC report filing. PLG stock had 4 new institutional investments in for a total of 11,819 shares, while 2 institutional investors sold positions of 64,192 shares during the same period.