Fortuna Silver Mines Inc. [FSM] is -36.89% lower this YTD. Is it still time to buy?

Fortuna Silver Mines Inc. [NYSE: FSM] gained 1.56% or 0.08 points to close at $5.20 with a heavy trading volume of 6106944 shares. The company report on July 2, 2021 that Fortuna and Roxgold complete combination to create a global premier growth-oriented intermediate gold and silver producer.

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Fortuna Silver Mines Inc. (“Fortuna”) (NYSE: FSM | TSX: FVI) and Roxgold Inc. (“Roxgold”) (TSX: ROXG | OTCQX: ROGFF) are pleased to announce the completion of the previously announced business combination between Fortuna and Roxgold (the “Transaction”) to create a global premier growth-oriented intermediate gold and silver producer. For additional details related to the Transaction, please refer to the joint news release dated April 26, 2021, “Fortuna And Roxgold Agree To Business Combination Creating A Low-Cost Intermediate Global Precious Metals Producer”.

Jorge A. Ganoza, President and CEO of Fortuna, commented, “The successfully completed business combination creates a low-cost intermediate gold and silver producer with four operating mines and a permitted development project. The company will benefit from a robust exploration pipeline and expanded presence in the Americas and West Africa, two of the fastest growing precious metals producing regions in the world.” Mr. Ganoza added, “We look forward to a successful integration and to continue building the business in West Africa on the solid foundations cemented by Roxgold.”.

It opened the trading session at $5.26, the shares rose to $5.34 and dropped to $5.16, the range by which the price of stock traded the whole day. The daily chart for FSM points out that the company has recorded -39.39% loss over the past six months. However, it is still -8.56% lower than its most recent low trading price.

If we look at the average trading volume of 4.03M shares, FSM reached to a volume of 6106944 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Fortuna Silver Mines Inc. [FSM]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FSM shares is $9.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FSM stock is a recommendation set at 3.00. 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.

Scotiabank have made an estimate for Fortuna Silver Mines Inc. shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on April 02, 2020. The new note on the price target was released on March 05, 2019, representing the official price target for Fortuna Silver Mines Inc. stock.

The Average True Range (ATR) for Fortuna Silver Mines Inc. is set at 0.24, with the Price to Sales ratio for FSM stock in the period of the last 12 months amounting to 2.76. The Price to Book ratio for the last quarter was 1.28.

Trading performance analysis for FSM stock

Fortuna Silver Mines Inc. [FSM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.80. With this latest performance, FSM shares dropped by -20.97% in over the last four-week period, additionally sinking by -39.39% over the last 6 months – not to mention a rise of 1.56% 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 FSM stock in for the last two-week period is set at 32.85, with the RSI for the last a single of trading hit 33.17, and the three-weeks RSI is set at 35.10 for Fortuna Silver Mines Inc. [FSM]. The present Moving Average for the last 50 days of trading for this stock 6.19, while it was recorded at 5.17 for the last single week of trading, and 6.93 for the last 200 days.

Fortuna Silver Mines Inc. [FSM]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Fortuna Silver Mines Inc. [FSM] shares currently have an operating margin of +25.19 and a Gross Margin at +37.49. Fortuna Silver Mines Inc.’s Net Margin is presently recorded at +7.82.

Return on Total Capital for FSM is now 8.48, given the latest momentum, and Return on Invested Capital for the company is 2.66. Return on Equity for this stock inclined to 3.31, with Return on Assets sitting at 2.26. When it comes to the capital structure of this company, Fortuna Silver Mines Inc. [FSM] has a Total Debt to Total Equity ratio set at 24.54. Additionally, FSM Total Debt to Total Capital is recorded at 19.71, with Total Debt to Total Assets ending up at 16.88. Long-Term Debt to Equity for the company is recorded at 23.58, with the Long-Term Debt to Total Capital now at 18.93.

Reflecting on the efficiency of the workforce at the company, Fortuna Silver Mines Inc. [FSM] managed to generate an average of $8,956 per employee. Receivables Turnover for the company is 4.54 with a Total Asset Turnover recorded at a value of 0.29.

An analysis of insider ownership at Fortuna Silver Mines Inc. [FSM]

There are presently around $308 million, or 37.54% of FSM stock, in the hands of institutional investors. The top three institutional holders of FSM stocks are: VAN ECK ASSOCIATES CORP with ownership of 19,584,444, which is approximately -7.705% of the company’s market cap and around 0.96% of the total institutional ownership; MIRAE ASSET GLOBAL INVESTMENTS CO., LTD., holding 4,105,417 shares of the stock with an approximate value of $21.35 million in FSM stocks shares; and JUPITER ASSET MANAGEMENT LTD, currently with $18.65 million in FSM stock with ownership of nearly -6.369% of the company’s market capitalization.

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Positions in Fortuna Silver Mines Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 73 institutional holders increased their position in Fortuna Silver Mines Inc. [NYSE:FSM] by around 8,123,351 shares. Additionally, 71 investors decreased positions by around 10,123,977 shares, while 23 investors held positions by with 40,966,342 shares. The mentioned changes placed institutional holdings at 59,213,670 shares, according to the latest SEC report filing. FSM stock had 29 new institutional investments in for a total of 4,660,523 shares, while 27 institutional investors sold positions of 3,809,556 shares during the same period.

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