Volatility Returns To Galiano Gold Inc. (GAU), Endeavour Silver Corp. (EXK)

Galiano Gold Inc. (AMEX: GAU) shares are 66.32% up in the year-to-date (YTD) period and have moved -2.47% or -$0.04 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +182.14% lower. Comparatively, the stock is -25.47% down YTD and 37.39% over the trailing 3-month period. If we look at the shorter duration, its week performance is 0.64% and -15.96% over the month.

Analyst Recommendations

0 of the 5 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $1.58. The forecasts give the Galiano Gold Inc. stock a price target range of $2.55 on the higher side while at least one analyst think the stock could plunge to a low of $1.71. The two limits represent an upside potential of 38.04% or 7.6%.

Endeavour Silver Corp. (NYSE:EXK), on the other hand, is trading around $4.16 with a market cap of $595.59M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $4.53 and spell out a more modest performance – a 8.17% return. Some analysts are even forecasting $0.19 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Endeavour Silver Corp. (EXK) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

EXK’s operating margin was negative on the trailing 12 months basis, remaining steady at -32.10%, while the operating expenses over the recent quarter were at $13.8 million. This represented a 31.7% of the company’s total revenues which amounted $20.2 million. With this in place, we can see that the company’s diluted EPS declined -$0.02 on the year-over-year period, shrinking to -$0.08 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Mar 2018), the total assets figure advanced to $167.16 million from $150.26 million over the previous quarter. Short term investments amounted to $0.18 million while total current assets were at $65.7 million. The cash flow from operating activities totaled -$3.26 million, significantly higher than the -$8.97 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$13.64 million.

Major holders

Insiders own 2.40% of the company shares, while shares held by institutions stand at 26.40% with a share float percentage of 153.72M. Investors are also buoyed by the number of investors in a company, with Endeavour Silver Corp. having a total of 107 institutions that hold shares in the company. The top two institutional holders are Van Eck Associates Corporation with over 7.16 million shares worth more than $16.33 million. As of Jun 29, 2020, Van Eck Associates Corporation held 4.62% of shares outstanding.

The other major institutional holder is Merian Global Investors (UK) Ltd., with the investment firm holding over 3.29 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $7.49 million and represent 2.12% of shares outstanding.