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Why First Majestic Stock Plummets

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
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First Majestic Silver Corp. (Canada) has faced challenges as the market reacts to escalating global economic concerns and fluctuating silver prices, highlighting its vulnerability to external market pressures. On Friday, First Majestic Silver Corp. (Canada)’s stocks have been trading down by -4.3 percent.

Key Factors Impacting First Majestic’s Stock

  • National Bank cuts the share price target to C$10.25 from C$11.25, maintaining a Sector Perform rating.

Candlestick Chart

Live Update At 14:32:50 EST: On Friday, February 14, 2025 First Majestic Silver Corp. (Canada) stock [NYSE: AG] is trending down by -4.3%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Scotiabank reduces the firm’s price target from $6.50 to $6 while holding on to the Sector Perform rating.

  • Adjustments have been made to Q4 metal prices, forex rates, and 2024 estimates impacting firm performance.

Insight into First Majestic’s Financials

As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” Successful trading is not about having a perfect track record, but rather about managing risks and ensuring that your capital is preserved over the long run. By maintaining a focus on capital protection, traders can continue to seek opportunities and improve their strategies without the pressure of having to win every single trade.

Recent financials present an intriguing story. The company’s revenue stands at $576.4M, reflecting a robust stream, yet a closer look unveils some hurdles. Its EBITDA margin shines at 15.9%, but the eviscerating reality is seen in a negative EBIT margin of -6.9%. A tumble in profit margins further accentuates struggles, as it plummets to a disconcerting -14.83%.

Judging by the stock’s recent closing prices and intraday moves, it reveals a pattern: down, yet not out. The price per share has experienced highs and lows, vibrating between $5 and just below $6 in recent days. On the bright side, the company’s strong cash reserves, with a current account of $154.73M, secures its operational flexibility.

Though sluggish in profitability, the firm seems to be navigating through debts with a total debt-to-equity ratio of 0.17, which holds steady. The company takes pride in its asset turnover, which registers at 0.3, hinting at balanced asset management. However, the profitability of these assets is a narrative steeped in a need for a strategic rethink.

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With recent financial dynamics revealing more downswings than up-ticks, the avenue for growth demands robust measures and substantial tweaks in corporate strategies. Like any gripping tale in the financial realm, the potential of a rebound isn’t beyond reach. But First Majestic must dig deeper, institute reforms, and leverage market opportunities to steer itself back to stable profitability.

Catalysts and Challenges in Metal Prices

First Majestic finds itself embroiled in a dual spectrum of optimism and caution as the metals market flexes its dynamic nature. Adjustments in metal prices remain a dampening factor. The Q4 period showcased some volatility alongside fluctuating forex rates. In this economic cacophony, the silver market holds substantial sway over First Majestic’s growth. The world’s hunger for precious metals narrates a tale that could unpredictably shift fortunes—both exciting and daunting.

The stock prices have wavered, past monthly highs clocked around $6.21 while lows touched nearer to $5.12. The current volatile environment indicates either a prolonged wait for turnaround or a risk poised with snug opportunities. For seasoned traders, this is a landscape to either reap quick rewards or retreat gracefully.

As the world oscillates between scarcity and abundance in commodities, the strategic placement of First Majestic will demand expert navigation through precarious waters. The firm’s competency to stabilize amidst shifting forecasts is paramount to its survival.

Navigating Unsteady Financial Terrain

The scenario surrounding First Majestic embodies a classic financial odyssey, fraught with peaks and troughs. Heavy cash outflows and income portrayals marred with losses present formidable obstacles. Yet, the substantial accounts receivable turnover at 38.7 hints at a potentially swift conversion into cash.

The balance sheet’s stockholders’ equity reveals health with reporting figures of $1.38B. Debt engagements reflect considerate planning, with long-term debts tallying at $206.19M. However, navigating these figures calls for prescient strategizing amidst the swirling tides of market changes.

As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” Embarking on a journey across this unsteady financial terrain, First Majestic must unequivocally brace itself for navigating complexities. Transformative times beckon, and being attuned to the potent merge of internal recalibration and external nuance remains its ticket to a narrative adorned with triumph.

The downward trajectory of First Majestic’s stock navigates a turbulent course but within lies opportunity. The interplay of fiscal dynamics knit with external market shifts carves out potential pathways toward recovery. Visionary recalibration will be key—a potential pivot for a brighter story forged within First Majestic’s storied walls.

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”