Pan American Silver (NYSE:PAAS) Shares Gap Down After Earnings Miss

Shares of Pan American Silver Corp. (NYSE:PAAS) (TSE:PAAS) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $52.38, but opened at $48.00. Pan American Silver shares last traded at $47.9060, with a volume of 1,453,462 shares.

The basic materials company reported $0.73 earnings per share for the quarter, missing the consensus estimate of $0.84 by ($0.11). Pan American Silver had a return on equity of 19.50% and a net margin of 31.66%.The company had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.16 billion. During the same period last year, the firm earned $0.43 EPS. The firm’s revenue for the quarter was up 38.4% compared to the same quarter last year.

Pan American Silver Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Monday, August 24th will be paid a $0.184 dividend. This is an increase from Pan American Silver’s previous quarterly dividend of $0.18. This represents a $0.74 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Monday, August 24th. Pan American Silver’s dividend payout ratio is 23.15%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on PAAS shares. Zacks Research downgraded shares of Pan American Silver from a “hold” rating to a “strong sell” rating in a research note on Friday, July 17th. Wall Street Zen cut Pan American Silver from a “strong-buy” rating to a “buy” rating in a research report on Sunday, July 12th. TD Cowen upgraded Pan American Silver from a “hold” rating to a “buy” rating and lifted their target price for the stock from $67.00 to $72.00 in a research note on Tuesday, May 12th. Royal Bank Of Canada reissued an “outperform” rating and set a $75.00 target price on shares of Pan American Silver in a report on Tuesday, April 28th. Finally, Bank of America dropped their price target on Pan American Silver from $77.00 to $69.00 and set a “buy” rating on the stock in a research note on Thursday, July 9th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $70.43.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Fifth Third Bancorp lifted its position in Pan American Silver by 1,336.1% during the first quarter. Fifth Third Bancorp now owns 517 shares of the basic materials company’s stock worth $28,000 after acquiring an additional 481 shares during the last quarter. NFJ Investment Group LLC acquired a new position in shares of Pan American Silver in the second quarter valued at approximately $25,000. Parallel Advisors LLC increased its stake in shares of Pan American Silver by 151.8% during the third quarter. Parallel Advisors LLC now owns 642 shares of the basic materials company’s stock worth $25,000 after purchasing an additional 387 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in Pan American Silver during the 4th quarter worth approximately $34,000. Finally, Danske Bank A S acquired a new stake in Pan American Silver during the 2nd quarter worth approximately $30,000. 55.43% of the stock is owned by institutional investors.

Pan American Silver Price Performance

The company has a 50 day moving average of $46.07 and a 200-day moving average of $53.35. The firm has a market capitalization of $19.87 billion, a P/E ratio of 15.32, a P/E/G ratio of 4.48 and a beta of 0.73. The company has a current ratio of 2.84, a quick ratio of 2.11 and a debt-to-equity ratio of 0.11.

Pan American Silver Company Profile

Pan American Silver Corp. (NYSE: PAAS) is a Vancouver-based mining company and one of the world’s largest primary silver producers. The company’s core activities encompass the exploration, development, extraction and processing of silver, with significant by-product production of gold, zinc and lead. Pan American Silver maintains a vertically integrated operating model, covering the full mining value chain from resource discovery through to refined metal production.

With a geographic footprint concentrated across the Americas, Pan American Silver operates multiple mines in Mexico, Peru, Argentina and Bolivia, and is advancing several development and exploration projects in Chile and Ecuador.