First Majestic Silver (AG) Showing Signs Of Perilous Reversal Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified First Majestic Silver ( AG) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified First Majestic Silver as such a stock due to the following factors:

  • AG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.9 million.
  • AG has traded 106,793 shares today.
  • AG is down 3.2% today.
  • AG was up 7.7% yesterday.

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More details on AG:

First Majestic Silver Corp. acquires, develops, and explores mineral properties with a focus on silver projects in Mexico. Currently there are 3 analysts that rate First Majestic Silver a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for First Majestic Silver has been 2.8 million shares per day over the past 30 days. First Majestic has a market cap of $573.6 million and is part of the basic materials sector and metals & mining industry. Shares are down 52.1% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates First Majestic Silver as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • FIRST MAJESTIC SILVER CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, FIRST MAJESTIC SILVER CORP swung to a loss, reporting -$0.33 versus $0.78 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 164.0% when compared to the same quarter one year ago, falling from $16.32 million to -$10.45 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, FIRST MAJESTIC SILVER CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for FIRST MAJESTIC SILVER CORP is rather low; currently it is at 21.58%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -25.63% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $4.97 million or 86.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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