Alamos Gold (NYSE:AGI) Stock Price Down 6.3% – Here’s Why

Alamos Gold Inc. (NYSE:AGI) (TSE:AGI)’s stock price dropped 6.3% during trading on Wednesday . The stock traded as low as $42.34 and last traded at $42.8320. Approximately 592,155 shares were traded during trading, a decline of 85% from the average daily volume of 3,993,090 shares. The stock had previously closed at $45.72.

Analysts Set New Price Targets

AGI has been the topic of several research analyst reports. Canadian Imperial Bank of Commerce restated an “outperform” rating on shares of Alamos Gold in a research report on Wednesday, February 4th. Desjardins began coverage on shares of Alamos Gold in a research report on Friday, November 28th. They set a “buy” rating for the company. Weiss Ratings reiterated a “buy (a)” rating on shares of Alamos Gold in a research note on Monday, December 29th. Wall Street Zen downgraded Alamos Gold from a “strong-buy” rating to a “buy” rating in a research report on Sunday, March 1st. Finally, Jefferies Financial Group restated a “buy” rating and set a $49.00 price target on shares of Alamos Gold in a research note on Sunday, December 7th. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $45.50.

Alamos Gold Price Performance

The stock has a market cap of $17.65 billion, a price-to-earnings ratio of 20.03, a price-to-earnings-growth ratio of 0.62 and a beta of 0.55. The company has a quick ratio of 1.60, a current ratio of 2.00 and a debt-to-equity ratio of 0.05. The company’s 50-day moving average is $44.86 and its 200-day moving average is $38.22.

Alamos Gold (NYSE:AGI) (TSE:AGI) last released its quarterly earnings data on Wednesday, February 18th. The basic materials company reported $0.54 earnings per share for the quarter, beating analysts’ consensus estimates of $0.49 by $0.05. Alamos Gold had a return on equity of 14.83% and a net margin of 48.97%.The company had revenue of $575.30 million for the quarter, compared to the consensus estimate of $596.18 million. During the same period in the previous year, the business earned $0.25 earnings per share. The company’s quarterly revenue was up 53.1% on a year-over-year basis. Equities research analysts expect that Alamos Gold Inc. will post 1.29 earnings per share for the current fiscal year.

Alamos Gold Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Thursday, March 12th will be paid a $0.04 dividend. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.16 annualized dividend and a yield of 0.4%. This is a positive change from Alamos Gold’s previous quarterly dividend of $0.03. Alamos Gold’s payout ratio is presently 7.62%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of AGI. Van ECK Associates Corp lifted its holdings in shares of Alamos Gold by 35.3% during the third quarter. Van ECK Associates Corp now owns 45,544,137 shares of the basic materials company’s stock valued at $1,587,666,000 after acquiring an additional 11,876,324 shares during the period. Vanguard Group Inc. grew its holdings in shares of Alamos Gold by 1.9% in the 4th quarter. Vanguard Group Inc. now owns 17,565,941 shares of the basic materials company’s stock worth $678,291,000 after purchasing an additional 332,335 shares during the last quarter. CIBC Asset Management Inc increased its position in shares of Alamos Gold by 29.3% during the 2nd quarter. CIBC Asset Management Inc now owns 11,132,337 shares of the basic materials company’s stock worth $296,623,000 after purchasing an additional 2,521,347 shares in the last quarter. Mackenzie Financial Corp increased its position in shares of Alamos Gold by 6.3% during the 3rd quarter. Mackenzie Financial Corp now owns 9,547,541 shares of the basic materials company’s stock worth $332,724,000 after purchasing an additional 567,926 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Alamos Gold by 11.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 9,095,054 shares of the basic materials company’s stock valued at $351,072,000 after purchasing an additional 964,317 shares during the last quarter. 64.33% of the stock is currently owned by institutional investors and hedge funds.

Alamos Gold Company Profile

Alamos Gold Inc is a Canadian-based intermediate gold producer engaged in the exploration, development and operation of mining projects in North America. Its principal activities include the acquisition, exploration and development of gold-bearing properties, and the management of operating mines. The company focuses on sustainable production practices and maintains a portfolio that spans both producing assets and advanced-stage development projects.

Alamos Gold operates multiple open pit and underground mines, including the Young-Davidson and Island Gold mines in Ontario, Canada, and the Mulatos mine in Sonora, Mexico.