Yamana Gold Inc. [AUY] gain 7.35% so far this year. What now?

Yamana Gold Inc. [NYSE: AUY] surged by $0.01 during the normal trading session on Friday and reaching a high of $4.645 during the day while it closed the day at $4.53. The company report on September 23, 2022 that Glencore to Acquire Newmont’s 18.75% Shareholding in the Mara Project.

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Today Glencore International AG (“Glencore”) announced, and has made Yamana Gold Inc. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or the “Company”) aware under the terms of the MARA joint venture (“MARA JV”), that it has reached an agreement (the “Agreement”) to acquire Newmont Corporation’s (“Newmont”) 18.75% shareholding in the MARA Project (“MARA” or the “Project”). Following completion of the Agreement, Yamana remains the MARA JV operator with a 56.25% interest in MARA, with Glencore owning the remaining 43.75%. Yamana welcomes Glencore’s increased stake in the Project and believes the Agreement is a positive step for MARA, as the consolidation of ownership amongst partners provides a further endorsement of the quality and strategic optionality inherent in the Project, as well as underpinning its value.

Under the terms of the Agreement, Glencore will pay Newmont $124.9 million upon closing and a $30 million deferred payment upon commercial production subject to an annual interest charge of 6%. Total deferred consideration is capped at $50 million. Based on the NPV(8%) of $1.9 billion as determined by the 2020 PFS-B results summarized below, the implied P/NAV transaction multiple is approximately 0.5x which Yamana believes is in line with comparable precedent transactions for the sale of a minority interest in projects at similar stage of development.

Yamana Gold Inc. stock has also gained 12.13% of its value over the past 7 days. However, AUY stock has declined by -4.83% in the 3 months of the year. Over the past six months meanwhile, it has lost -18.82% and gained 7.35% year-on date.

The market cap for AUY stock reached $4.38 billion, with 961.06 million shares outstanding and 957.54 million shares in the current float. Compared to the average trading volume of 15.61M shares, AUY reached a trading volume of 17714021 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Yamana Gold Inc. [AUY]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AUY shares is $6.46 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AUY stock is a recommendation set at 2.20. 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.

BofA Securities have made an estimate for Yamana Gold Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 22, 2021. The new note on the price target was released on August 04, 2021, representing the official price target for Yamana Gold Inc. stock. Previously, the target price had yet another raise to $5.50, while Barclays analysts kept a Equal Weight rating on AUY stock. On November 16, 2020, analysts increased their price target for AUY shares from 8.25 to 9.

The Average True Range (ATR) for Yamana Gold Inc. is set at 0.22, with the Price to Sales ratio for AUY stock in the period of the last 12 months amounting to 2.33. The Price to Book ratio for the last quarter was 0.98, with the Price to Cash per share for the same quarter was set at 0.58. Price to Free Cash Flow for AUY in the course of the last twelve months was 19.11 with Quick ratio for the last quarter at 1.50.

AUY stock trade performance evaluation

Yamana Gold Inc. [AUY] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.13. With this latest performance, AUY shares gained by 2.72% in over the last four-week period, additionally sinking by -18.82% over the last 6 months – not to mention a rise of 14.39% 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 AUY stock in for the last two-week period is set at 53.23, with the RSI for the last a single of trading hit 58.56, and the three-weeks RSI is set at 50.51 for Yamana Gold Inc. [AUY]. The present Moving Average for the last 50 days of trading for this stock 4.62, while it was recorded at 4.29 for the last single week of trading, and 4.87 for the last 200 days.

Yamana Gold Inc. [AUY]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Yamana Gold Inc. [AUY] shares currently have an operating margin of +29.10 and a Gross Margin at +34.54. Yamana Gold Inc.’s Net Margin is presently recorded at +8.12.

Return on Equity for this stock inclined to 3.34, with Return on Assets sitting at 1.73.

Yamana Gold Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 2.00.

Yamana Gold Inc. [AUY]: Insider Ownership positions

There are presently around $2,429 million, or 60.70% of AUY stock, in the hands of institutional investors. The top three institutional holders of AUY stocks are: VAN ECK ASSOCIATES CORP with ownership of 112,760,666, which is approximately 3.068% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 31,747,958 shares of the stock with an approximate value of $143.82 million in AUY stocks shares; and ROYAL BANK OF CANADA, currently with $134.14 million in AUY stock with ownership of nearly -4.4% of the company’s market capitalization.

Positions in Yamana Gold Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 137 institutional holders increased their position in Yamana Gold Inc. [NYSE:AUY] by around 124,354,278 shares. Additionally, 130 investors decreased positions by around 84,112,752 shares, while 65 investors held positions by with 327,658,955 shares. The mentioned changes placed institutional holdings at 536,125,985 shares, according to the latest SEC report filing. AUY stock had 60 new institutional investments in for a total of 66,076,237 shares, while 41 institutional investors sold positions of 12,118,626 shares during the same period.


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