First Majestic Silver Corp. [AG] Stock trading around $10.63 per share: What’s Next?



First Majestic Silver Corp. [NYSE: AG] traded at a low on 01/05/22, posting a -3.01 loss after which it closed the day’ session at $10.63. The company report on December 2, 2021 that First Majestic Completes US$230 Million Convertible Senior Notes Offering.

Vancouver, British Columbia–(Newsfile Corp. – December 2, 2021) – First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (“First Majestic” or the “Company”) announced today the closing of its previously announced offering of US$200 million aggregate principal amount of 0.375% unsecured convertible senior notes due in 2027 (the “Notes”). The Company also announced the concurrent closing of an additional US$30 million aggregate principal amount of the Notes pursuant to the exercise in full of the over-allotment option granted to the initial purchasers of the Notes. The initial conversion rate for the Notes is 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.

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The Company will use a portion of the proceeds of the Offering to complete the repurchase, in separate privately negotiated transactions, of approximately US$125.2 million aggregate principal amount of its outstanding 1.875% convertible senior notes (the “Existing Notes”) for payment of approximately US$164.9 million. The Company intends to use the remainder of the net proceeds from the Offering for general corporate purposes, including strategic opportunities.

The results of the trading session contributed to over 5150482 shares changing hands. Over the past one week, the price volatility of First Majestic Silver Corp. stands at 4.29% while the volatility over the past one month is 3.72%.

The market cap for AG stock reached $2.67 billion, with 251.51 million shares outstanding and 217.36 million shares in the current float. Compared to the average trading volume of 4.35M shares, AG reached a trading volume of 5150482 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 December 07, 2021. The new note on the price target was released on October 20, 2020, representing the official price target for First Majestic Silver Corp. stock.

The Average True Range (ATR) for First Majestic Silver Corp. is set at 0.51, with the Price to Sales ratio for AG stock in the period of the last 12 months amounting to 5.39. The Price to Book ratio for the last quarter was 2.76.

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 -1.39. With this latest performance, AG shares dropped by -3.45% in over the last four-week period, additionally sinking by -25.97% over the last 6 months – not to mention a drop of -25.30% 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 38.57, with the RSI for the last a single of trading hit 36.41, and the three-weeks RSI is set at 39.97 for First Majestic Silver Corp. [AG]. The present Moving Average for the last 50 days of trading for this stock 12.03, while it was recorded at 10.93 for the last single week of trading, and 13.87 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]

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%.

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Insider trade positions for First Majestic Silver Corp. [AG]

There are presently around $790 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 $93.82 million in AG stocks shares; and VANGUARD GROUP INC, currently with $73.97 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 February and at the time of the February reporting period, where 93 institutional holders increased their position in First Majestic Silver Corp. [NYSE:AG] by around 4,627,131 shares. Additionally, 76 investors decreased positions by around 9,265,948 shares, while 38 investors held positions by with 58,196,559 shares. The mentioned changes placed institutional holdings at 72,089,638 shares, according to the latest SEC report filing. AG stock had 27 new institutional investments in for a total of 1,469,717 shares, while 29 institutional investors sold positions of 2,742,997 shares during the same period.