Time To Sell Or More Gains Ahead? – Pan American Silver Corp. (PAAS), Continental Resources Inc. (CLR)

Pan American Silver Corp. (NASDAQ: PAAS) shares are 46.60% up in the year-to-date (YTD) period and have moved 4.33% or $1.44 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +227.33% lower. Comparatively, the stock is -13.41% down YTD and 28.96% over the trailing 3-month period. If we look at the shorter duration, its week performance is 2.69% and -8.58% over the month.

Analyst Recommendations

On July 23, 2020, BofA Securities recommended the PAAS stock is a Buy, while earlier, Deutsche Bank had Downgrade the stock as a Hold on August 11, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 2.10 to suggest that the PAAS stock is a “Moderate Buy. 0 of the 10 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 6 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $34.73 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $41.89. The forecasts give the Pan American Silver Corp. stock a price target range of $53.00 on the higher side while at least one analyst think the stock could plunge to a low of $34.00. The two limits represent an upside potential of 34.47% or -2.15%.

Earnings Forecast

Analysts estimate the earnings to increase 366.70% in the current quarter to $0.32, down from the $0.35 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.74, up 7.80% from $0.78 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.3 and $0.7. Wall Street estimates earnings per share to be at an average of $1.97 for the next year.

Continental Resources Inc. (NYSE:CLR), on the other hand, is trading around $17.28 with a market cap of $6.49B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $18.97 and spell out a more modest performance – a 8.91% return. Some analysts are even forecasting -$1.26 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Continental Resources Inc. (CLR) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CLR’s operating margin was positive on the trailing 12 months basis, remaining steady at 4.20%, while the operating expenses over the recent quarter were at $65.07 million. This represented a 62.96% of the company’s total revenues which amounted $175.66 million. With this in place, we can see that the company’s diluted EPS declined -$0.67 on the year-over-year period, growing to $0.63 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $14.77 billion from $15.76 billion over the previous quarter. The cash flow from operating activities totaled $643.57 million, significantly lower than the $1.5 billion reported in the year-ago quarter. The company’s free cash flow for the quarter was $607.02 million.

Insider activity

Insiders have transacted a total of 33 times at Continental Resources Inc. over the last 6 months, with insider purchases undertaken 32 times and accounting for 10,875,011 shares. Insider sales totaled 48,932 shares over the same period, with these deals completed in 1 transactions. Looking at these numbers, we realize that net purchases over that period are 31.0 shares. Insiders now hold a total of 286.73M shares after the latest sales, with 4.00% net shares purchased.

Major holders

Insiders own 3.90% of the company shares, while shares held by institutions stand at 17.60% with a share float percentage of 63.99M. Investors are also buoyed by the number of investors in a company, with Continental Resources Inc. having a total of 473 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 7.29 million shares worth more than $127.85 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 2.00% of shares outstanding.

The other major institutional holder is State Street Corporation, with the investment firm holding over 5.71 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $100.16 million and represent 1.56% of shares outstanding.