NEW YORK (TheStreet) -- Shares of First Majestic Silver Corp. (AG - Get Report) are down 3.62% to $6.13 as gold and silver futures fell for the first time in four sessions, and as speculation mounted that the Federal Reserve is moving closer to boosting U.S. interest rates for the first time since 2006, Bloomberg reports.
Silver futures for March delivery fell 0.37% to $16.58 an ounce at 1:03 p.m. on the Comex in New York. The price jumped 6.7% in the previous three sessions.
The Fed minutes, due at 2 p.m., will cover the Federal Open Market Committee's December 16-17 meeting, when the central bank said it will be "patient" in considering the timing of the rate increase, Bloomberg added.
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Separately, TheStreet Ratings team rates FIRST MAJESTIC SILVER CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIRST MAJESTIC SILVER CORP (AG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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 analysis by TheStreet Ratings Team goes as follows:
- 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.
- You can view the full analysis from the report here: AG Ratings Report