Pan American Silver Corp. (NASDAQ:PAAS) Stock: The Math Behind The Indicators

Taking into account all relevant factors, Pan American Silver Corp. (NASDAQ:PAAS) scores 80% Buy on the technical side. The share price is also flashing a Hold from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for PAAS averaged 50% Buy with an average daily trading volume over the past 20 days at 2917298 shares. Those using medium-term investment strategies, the shares have overall a 1% Buy signal while the 50-day average daily volume remained almost 2874833 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 3102215 shares, is signaling100% Buy for long term investors.

The stock is lingering around the initial support level of $22.16. After this, the following support is at the zone of $21.59. Up until the time the PAAS stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 47.06 on the daily chart, and this may be a cause for concern. In case the price goes below $21.59 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $23.19 level may cause a pull-back move approaching $23.65 mark.

Pan American Silver Corp. (PAAS) is most likely going to rise 5.14 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $30 as 12-month high price target. This represents a whopping 38.89 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $25, which means a return possibility of 15.74 percent in comparison with the closing price of the stock of $21.6 in recent trading session. The lowest price set for the stock is $20.5 which is just above -5.09 percent from PAAS share’s price at the end of session.

In the recent trading session, Pan American Silver Corp. (NASDAQ:PAAS) shares lost -4.97% or -1.13 points to reach at $21.6 with a thin trading volume of 859.165 thousand shares. It opened the trading session at $22.89, the shares rose to $23.08 and dropped to $22.05, the range by which the price of stock traded the whole session. The company now has a market cap of $4.68 billion and currently has 205.97 million outstanding shares. Pan American Silver Corp. (PAAS) stock has accumulated 5.57 percent of market value in 21 trading days.

Stock analysts at BofA/Merrill cut their rating on shares of Pan American Silver Corp. (NASDAQ:PAAS) from Neutral to a new rating of Underperform in their opinion released on January 16. Deutsche Bank analysts have downgraded their rating of PAAS shares from Buy to Hold in a separate flash note to investors on January 09. Analysts at RBC Capital Mkts issued an upgrade for the stock to Outperform from previous rating of Sector Perform, in a research note that dated back to September 05.

PAAS stock’s trailing 3-year beta is 0.27, 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 $0.02 share in the trailing 52 weeks. The stock’s value fallen -4.05 percent year to date (YTD) compared to a rise of 56.22 percent in 52 week’s period. The firm’s shares are still trading -10.07 percent below its 1-year high of $24.02 and 110.53 percent up from 52-week low of $10.26. The average consensus ranking on the company is 2.3, 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.

Pan American Silver Corp. (PAAS) shares are trading at a P/E ratio of 529.31 times earnings posted in the trailing 12 months. The industry PAAS deals with has an average P/E of 56.7. Its P/B ratio is standing at 2.12X compared to the 2.56 industry average. It is additionally sporting a 2.93 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.43. Pan American Silver Corp. has a 12.6% gross profit margin, with its operating margin around 12.4%. Alongside this, the company’s net profit margin currently stands at 12.3%.

Past records have indicated that shares in Pan American Silver Corp. rose on 15 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 PAAS’s Q4 earnings on February 24. Analysts are predicting revenue to climb 138.2 percent to $413M in the financial fourth quarter, while EPS will soar by about -2100 percent to $0.2 per share. In the last quarter, it’s earnings of $0.04 per share came better than the $0.03923, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $173.36M, missing the $179.03M analysts had expected. Earnings are seen to rise by -91.5 percent this year, 63.34 percent in the coming year and the trend continues by 57.85 percent every year in the next 5 years.