Silvercorp Metals (NYSEAMERICAN:SVM) Shares Gap Up – Still a Buy?

Silvercorp Metals Inc. (NYSEAMERICAN:SVM)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $11.54, but opened at $12.28. Silvercorp Metals shares last traded at $12.3630, with a volume of 706,565 shares.

Analysts Set New Price Targets

Several research firms have recently commented on SVM. Jefferies Financial Group raised shares of Silvercorp Metals to a “buy” rating in a research report on Monday, June 15th. Zacks Research cut Silvercorp Metals from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 20th. Finally, Roth Capital reissued a “buy” rating and issued a $14.00 price objective (up from $13.50) on shares of Silvercorp Metals in a report on Wednesday, August 12th. Six research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, Silvercorp Metals has a consensus rating of “Moderate Buy” and a consensus target price of $10.75.

Silvercorp Metals Price Performance

The company has a current ratio of 3.51, a quick ratio of 3.46 and a debt-to-equity ratio of 0.10. The business’s fifty day moving average price is $10.42 and its 200-day moving average price is $11.29. The company has a market capitalization of $2.77 billion, a P/E ratio of 104.64 and a beta of 1.15.

Silvercorp Metals (NYSEAMERICAN:SVM) last posted its quarterly earnings results on Monday, August 10th. The company reported $0.21 EPS for the quarter, meeting analysts’ consensus estimates of $0.21. The company had revenue of $138.67 million during the quarter, compared to analyst estimates of $138.70 million. Silvercorp Metals had a net margin of 6.32% and a return on equity of 18.34%. During the same period in the prior year, the business posted $0.08 EPS. As a group, sell-side analysts predict that Silvercorp Metals Inc. will post 0.66 earnings per share for the current fiscal year.

Silvercorp Metals Dividend Announcement

The firm also recently announced a dividend, which was paid on Thursday, June 25th. Stockholders of record on Friday, June 5th were given a $0.0125 dividend. The ex-dividend date of this dividend was Friday, June 5th. This represents a dividend yield of 23.0%. Silvercorp Metals’s dividend payout ratio is currently 8.33%.

Institutional Investors Weigh In On Silvercorp Metals

A number of institutional investors have recently modified their holdings of the stock. Royal Bank of Canada raised its stake in shares of Silvercorp Metals by 31.6% in the first quarter. Royal Bank of Canada now owns 444,453 shares of the company’s stock worth $1,720,000 after purchasing an additional 106,813 shares during the last quarter. NewEdge Advisors LLC purchased a new stake in shares of Silvercorp Metals during the 1st quarter valued at about $97,000. Goldman Sachs Group Inc. boosted its holdings in shares of Silvercorp Metals by 3.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 845,675 shares of the company’s stock valued at $3,273,000 after acquiring an additional 28,803 shares during the last quarter. Jane Street Group LLC grew its position in Silvercorp Metals by 91.4% in the 1st quarter. Jane Street Group LLC now owns 102,296 shares of the company’s stock worth $396,000 after purchasing an additional 48,854 shares during the period. Finally, Geode Capital Management LLC increased its position in Silvercorp Metals by 5.7% during the second quarter. Geode Capital Management LLC now owns 123,058 shares of the company’s stock valued at $519,000 after acquiring an additional 6,637 shares during the last quarter. 22.30% of the stock is owned by hedge funds and other institutional investors.

Silvercorp Metals Company Profile

Silvercorp Metals Inc is a Canadian-based precious metals company engaged in silver, lead and zinc production. The company’s core operations are located in the provinces of Henan and Guangxi in the People’s Republic of China, where it operates several underground mining and milling facilities. Silvercorp focuses on low‐cost, high‐grade silver projects, producing concentrates that are sold to smelting partners under long‐term offtake arrangements.

The company’s principal assets include the Ying Mining District in Henan Province, which hosts multiple sub‐district mines, and the GC and HPG silver‐lead‐zinc projects in Guangxi Province.