Fortuna Silver Mines Inc. (FSM) shares are trading at lower $6.07 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $9.00.
To add more color to this target, the company’s high over the last year is $8.10 and the low is $1.47. Over the last 52 weeks, FSM is up 100.99% while the S&P 500 is up 15.91%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, FSM reported a profit of $28.49 million. Fortuna Silver Mines Inc. also saw revenues increase to $83.44 million. In addition, FSM has free cash flow of $47.67 million as of 09-2020. The company’s EBITDA came in at $39.53 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. FSM has a short ratio of 2.48 and outstanding shares of 184.20M.
FSM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.58 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.12. Fortuna Silver Mines Inc. FSM also noted assets of $987.82 million at the end of the last quarter. Investors should also keep an eye on sector updates as FSM has historically followed its peers on positive news.
All told, Fortuna Silver Mines Inc. FSM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, FSM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Fortuna Silver Mines Inc. FSM is now commanding a market cap of 1.12B and a float of 182.14M. FSM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of FSM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in FSM, either long or short, and we have not been compensated for this article.