First Majestic Silver Corp. [NYSE: AG] slipped around -0.75 points on Wednesday, while shares priced at $11.17 at the close of the session, down -6.29%. The company report on November 30, 2021 that First Majestic Prices Offering of Convertible Senior Notes.
Vancouver, British Columbia–(Newsfile Corp. – November 30, 2021) – First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (“First Majestic” or the “Company”) announced that it has priced its previously announced offering (the “Offering”) of unsecured convertible senior notes due in 2027 (the “Notes”). The Company will issue US$200 million aggregate principal amount of Notes (or US$230 million aggregate principal amount if the over-allotment option is exercised in full). The Notes will be issued at par value. The Company intends to use approximately US$164.9 million of the net proceeds of the Offering to repurchase, in separate privately negotiated transactions, approximately US$125.2 million aggregate principal amount of its outstanding 1.875% convertible senior notes (the “Existing Notes”). The Company intends to use the remainder of the net proceeds from the Offering for general corporate purposes, including strategic opportunities.
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The Notes will bear cash interest semi-annually at a rate of 0.375% per annum. The initial conversion rate for the Notes will be 60.3865 common shares (“Shares”) per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$16.56 per Share. The initial conversion rate represents a premium of approximately 35% relative to yesterday’s closing market price of the Shares and is subject to adjustment in certain events.
First Majestic Silver Corp. stock is now -16.89% down from its year-to-date (YTD) trading value. AG Stock saw the intraday high of $12.16 and lowest of $11.14 per share. The company’s 52-week high price is 24.01, which means current price is +6.89% above from all time high which was touched on 02/01/21.
Compared to the average trading volume of 4.24M shares, AG reached a trading volume of 7717229 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about First Majestic Silver Corp. [AG]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AG shares is $9.54 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AG stock is a recommendation set at 2.30. 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.
TD Securities have made an estimate for First Majestic Silver Corp. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 20, 2020. The new note on the price target was released on July 24, 2020, representing the official price target for First Majestic Silver Corp. stock. Previously, the target price had yet another raise to $6, while B. Riley FBR analysts kept a Neutral rating on AG stock.
The Average True Range (ATR) for First Majestic Silver Corp. is set at 0.63, with the Price to Sales ratio for AG stock in the period of the last 12 months amounting to 5.66. The Price to Book ratio for the last quarter was 2.90.
How has AG stock performed recently?
First Majestic Silver Corp. [AG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.85. With this latest performance, AG shares dropped by -13.48% in over the last four-week period, additionally sinking by -36.24% over the last 6 months – not to mention a rise of 1.27% 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 AG stock in for the last two-week period is set at 30.56, with the RSI for the last a single of trading hit 23.49, and the three-weeks RSI is set at 35.80 for First Majestic Silver Corp. [AG]. The present Moving Average for the last 50 days of trading for this stock 12.46, while it was recorded at 11.96 for the last single week of trading, and 14.62 for the last 200 days.
First Majestic Silver Corp. [AG]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and First Majestic Silver Corp. [AG] shares currently have an operating margin of +15.97 and a Gross Margin at +30.48. First Majestic Silver Corp.’s Net Margin is presently recorded at +6.34.
Return on Total Capital for AG is now 6.51, given the latest momentum, and Return on Invested Capital for the company is 2.62. Return on Equity for this stock inclined to 3.19, with Return on Assets sitting at 2.13. When it comes to the capital structure of this company, First Majestic Silver Corp. [AG] has a Total Debt to Total Equity ratio set at 20.38. Additionally, AG Total Debt to Total Capital is recorded at 16.93, with Total Debt to Total Assets ending up at 14.00. Long-Term Debt to Equity for the company is recorded at 18.46, with the Long-Term Debt to Total Capital now at 15.33.
Reflecting on the efficiency of the workforce at the company, First Majestic Silver Corp. [AG] managed to generate an average of $5,963 per employee. Receivables Turnover for the company is 9.52 with a Total Asset Turnover recorded at a value of 0.34.
Earnings analysis for First Majestic Silver Corp. [AG]
With the latest financial reports released by the company, First Majestic Silver Corp. posted 0.02/share EPS, while the average EPS was predicted by analysts to be reported at 0.02/share. 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 AG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for First Majestic Silver Corp. go to 46.80%.
Insider trade positions for First Majestic Silver Corp. [AG]
There are presently around $832 million, or 33.79% of AG stock, in the hands of institutional investors. The top three institutional holders of AG stocks are: VAN ECK ASSOCIATES CORP with ownership of 26,114,123, which is approximately -5.971% of the company’s market cap and around 15.54% of the total institutional ownership; ETF MANAGERS GROUP, LLC, holding 8,560,077 shares of the stock with an approximate value of $95.62 million in AG stocks shares; and VANGUARD GROUP INC, currently with $75.39 million in AG stock with ownership of nearly 3.659% of the company’s market capitalization.
Positions in First Majestic Silver Corp. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 94 institutional holders increased their position in First Majestic Silver Corp. [NYSE:AG] by around 4,637,686 shares. Additionally, 78 investors decreased positions by around 9,352,611 shares, while 38 investors held positions by with 60,469,661 shares. The mentioned changes placed institutional holdings at 74,459,958 shares, according to the latest SEC report filing. AG stock had 28 new institutional investments in for a total of 1,480,272 shares, while 28 institutional investors sold positions of 2,726,239 shares during the same period.