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First Majestic Silver Drops: Time to Reevaluate?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
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Silver market volatility and shifting demand dynamics are heavily influencing First Majestic Silver Corp. (Canada), alongside geopolitical tensions impacting global trade. On Friday, First Majestic Silver Corp. (Canada)’s stocks have been trading down by -4.56 percent.

Price Movement and Key Updates

  • The National Bank has reduced its target price for AG, lowering it to C$10.25, maintaining a Sector Perform rating. This shift reflects ongoing adjustments in the market landscape.

Candlestick Chart

Live Update At 17:21:09 EST: On Friday, February 14, 2025 First Majestic Silver Corp. (Canada) stock [NYSE: AG] is trending down by -4.56%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Scotiabank also revised its target price from $6.50 to $6 due to quarterly adjustments in metal prices and FX rates while keeping a consistent performance rating on the stock.

Financial Performance Overview

When it comes to trading, strategy and discipline are crucial components of success. Traders often find themselves juggling the tension between potential gains and realized profits. However, as millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This philosophy highlights the importance of not only making money but also retaining it. Successful traders understand that what truly matters in the long run is how effectively they can preserve their earnings while minimizing risks.

First Majestic Silver Corp., with its latest earnings report, paints an intriguing picture for potential investors. Its financial storylines reveal highs and lows that deserve attention. The company’s revenue stands at a healthy $576.39M, yet when you dive into profitability margins, the narrative turns murkier. With EBIT margins standing at a negative 6.9% and pre-tax profits sliding to minus 11.4%, questions around operational efficiency arise. Yet there is a silver lining — a gross margin of 11.6% hints at the core operations’ potential if nurtured right.

Examining valuation measures, AG finds itself dancing between scepticism and opportunity. A price-to-sales ratio of 3.24 and a rather daunting pricetobook ratio, invite investors to weigh trends against potential. Market watchers often keep an eye on cash flow ties, and with a price-to-cash-flow figure of 10.4, liquidity narratives become more tangled. Notably, the absence of a credible P/E ratio in recent assessments accentuates these complexities.

While charting through financial strengths, the company showcases fortitude with an impressive total debt to equity metric — resting at a mere 0.17. This signifies promising leverage and financial health but scratches the same question-word yet again, why the tumbling share prices?

AG’s Quick Ratio of 1.5 suggests decent liquidity, however, operating cash flow at over $41M indicates firm expense management and potential for regrowth. Yet, the net income tells another tale, sinking by -$26.59M, primarily pushed by factors outside the brass tacks of business.

Strategically, an infused capital stock amount reaching $1.98B mirrors the company’s forward focus, despite retaining earnings swinging to a -$702M valley. Yet closeness to a major ex-dividend date in Nov 15, 2024, highlights a critical juncture impacting investor sentiment.

More Breaking News

Recent daily charts offer more layers to unfold. From the warming peak of $5.96 in recent plays to closing figures dipping to $5.44, AG’s slight decrease begs an explanation in the North American market’s silver mines.

Reflecting On The Recent Developments

Recent financial strategies unravel dizzying twists for AG. Its tale doesn’t end with National Bank and Scotiabank’s lowered expectations but continues into the lands of operational reform. Both banking institutions, with their revised price targets demonstrate skepticism but sustain a sector performance reverie, standing neither lost nor found by potential tribulations.

A peek at intraday movements unveils AG’s mercurial nature, playing hopscotch with minuscule inclines and decline streaks over the trading hours. These mini-tremors ripple through the silver mining corridors, suggesting potential internal recalibrations in their workflow and market positions.

Cost strategy remains a hallmark in this unfolding script. Mining efforts nibble into net operating incomes reaching negative depths. The corporate landscape unfolds scenarios considering both AG’s strategic retreats and maneuvers, a tango of market-ready action and survival instincts.

Concluding Thoughts

First Majestic Silver Corp.’s current position, while precarious, paints a canvas of anticipations, trepidations, and speculative wintry flavors. Traders are left to assess the juxtaposition between targeted market valuation declines and the underlying metal’s price operation figures. As whispers of market adaptability float among stakeholders, AG’s narrative comes laden with transformational opportunities amidst paced retrieval efforts. Unfurling them requires not just patience but strategy, a knowing blend reminiscent of silver’s core glimmer amidst the mining dust.

As millionaire penny stock trader and teacher Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.” This wisdom is particularly poignant for traders analyzing AG’s path forward. Your moves next? Decide wisely. Assess proactively. The challenge lies between the glimmering anticipation of a rebound and the shadows of market turbulence. Will AG find its footing amidst these cautious times? A chapter yet to unfold with precision.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”