Why I’m Kicking Myself For Missing Out On Alamos Gold Inc. (AGI) Shares

On December 03, 2019, Alamos Gold Inc. (NYSE:AGI) shares gained 1.41% or 0.08 points to close at $5.74 with a heavy trading volume of 3.217 million shares. It opened the trading session at $5.74, the shares rose to $5.865 and dropped to $5.7, the range by which the price of stock traded the whole day. The company now has a market cap of $2.25 billion and currently has 391.19 million outstanding shares. Alamos Gold Inc. (AGI) stock has accumulated 5.32 percent of market value in 21 trading days.

AGI stock’s trailing 3-year beta is 0, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.04 share in the trailing 52 weeks. The stock’s value surged 59.44 percent year to date (YTD) compared to a rise of 78.26 percent in 52 week’s period. The firm’s shares are still trading -26.17 percent below its 1-year high of $7.78 and 97.93 percent up from 52-week low of $2.90. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Alamos Gold Inc. (AGI) is most likely going to rise 53.66 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $10.16-month high price target. This represents a whopping 77 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $8.18, which means a return possibility of 42.51 percent in comparison with the closing price of the stock of $5.74 on December 03. The lowest price set for the stock is $6.62 — just above 15.33 percent from AGI share price now.

Past records have indicated that shares in Alamos Gold Inc. rose on 9 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of AGI’s Q4 earnings on February 20. Analysts are predicting revenue to climb 11.8 percent to $148M in the financial fourth quarter, while EPS will soar by about -250 percent to $0.06 per share. In the last quarter, it earnings of $0.03 per share came worse than the $0.03451, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $163.1M, missing the $163.25M analysts had expected. Earnings are seen to rise by 53.8 percent this year, 55 percent in the coming year.

Let’s take a glimpse at some insider activity at Alamos Gold Inc. (NYSE:AGI) and observe the pattern. The earliest insider trade happened on 06/08/2005. HADDRILL RICHARD M gathered a total of 55.7 thousand shares of the firm at average share price of $13.75. The total amount for the purchase was set at $765.88 thousand. On completing this exchange, the CEO account balance was 602.54 thousand shares. The stock lost -58.25 percent from that insider purchase.

The stock is lingering around the initial support level of $5.67. After this, the following support is at the zone of $5.6. Up until the time the AGI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 60.59 on the daily chart, and this may be a cause for concern. In case the price goes below $5.6 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $5.84 level may cause a pull-back move approaching $5.93 mark.

The industry AGI deals with has an average P/E of 51.6. Its P/B ratio is standing at 0.8X compared to the 2 industry average. It is additionally sporting a 3.4 on the Price-to-Sales ratio, compared to the industry’s P/S average of 4.2.