Fortuna Silver Mines Inc. [FSM] Stock trading around $3.74 per share: What’s Next?


Fortuna Silver Mines Inc. [NYSE: FSM] loss -4.35% or -0.17 points to close at $3.74 with a heavy trading volume of 4920990 shares. The company report on December 20, 2021 that Fortuna receives San Jose Mine environmental impact authorization.

Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to announce that the Secretaría de Medio Ambiente y Recursos Naturales (“SEMARNAT”) has granted a twelve (12) year extension of the environmental impact authorization (“EIA”) at the San Jose Mine, located in Oaxaca, Mexico.

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Fortuna appealed the decision of the authority which denied the San Jose Mine EIA extension application (refer to Fortuna news release dated November 11, 2021). After continued dialogue and technical evaluation, SEMARNAT confirmed operations at the San Jose Mine are conducted in accordance with all environmental obligations under the EIA. Following confirmation of compliance, SEMARNAT reassessed Fortuna’s application and granted the extension on the existing EIA terms.

The daily chart for FSM points out that the company has recorded -27.10% loss over the past six months.

If we look at the average trading volume of 5.17M shares, FSM reached to a volume of 4920990 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]:

Canaccord Genuity have made an estimate for Fortuna Silver Mines Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on November 12, 2021. The new note on the price target was released on November 12, 2021, representing the official price target for Fortuna Silver Mines Inc. stock.

The Average True Range (ATR) for Fortuna Silver Mines Inc. is set at 0.18, with the Price to Sales ratio for FSM stock in the period of the last 12 months amounting to 1.63. The Price to Book ratio for the last quarter was 0.92.

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 -2.09. With this latest performance, FSM shares gained by 10.00% in over the last four-week period, additionally sinking by -27.10% over the last 6 months – not to mention a drop of -60.17% 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 48.73, with the RSI for the last a single of trading hit 47.96, and the three-weeks RSI is set at 47.62 for Fortuna Silver Mines Inc. [FSM]. The present Moving Average for the last 50 days of trading for this stock 4.00, while it was recorded at 3.87 for the last single week of trading, and 5.08 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.

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

There are presently around $296 million, or 27.34% 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 31,675,311, which is approximately 56.165% of the company’s market cap and around 0.62% of the total institutional ownership; RUFFER LLP, holding 4,345,040 shares of the stock with an approximate value of $16.99 million in FSM stocks shares; and MIRAE ASSET GLOBAL INVESTMENTS CO., LTD., currently with $14.98 million in FSM stock with ownership of nearly -11.865% of the company’s market capitalization.

Positions in Fortuna Silver Mines Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 80 institutional holders increased their position in Fortuna Silver Mines Inc. [NYSE:FSM] by around 24,474,646 shares. Additionally, 74 investors decreased positions by around 12,596,234 shares, while 26 investors held positions by with 38,748,107 shares. The mentioned changes placed institutional holdings at 75,818,987 shares, according to the latest SEC report filing. FSM stock had 23 new institutional investments in for a total of 5,459,186 shares, while 37 institutional investors sold positions of 6,504,841 shares during the same period.