Endeavour Silver Shares Decline as Analysts React to Earnings

Shares of Endeavour Silver Corporation (NYSE:EXK) experienced a notable decline at the market opening on Thursday, dropping from a closing price of $8.92 to an opening value of $8.65. As of the latest trade, the stock is valued at $8.6050, with a trading volume of 3,202,962 shares.

Analyst Reactions to Recent Earnings

The recent downturn follows the company’s quarterly earnings announcement on November 7, 2023, where Endeavour Silver reported a loss of ($0.01) earnings per share. This figure fell short of analysts’ expectations, which had estimated earnings of $0.05, representing a discrepancy of ($0.06). The company generated revenue of $111.40 million, significantly below the projected $162.05 million. This disappointing performance resulted in a negative return on equity of 1.34% and a net margin of 31.18%.

In response to these earnings, various research firms have updated their ratings on Endeavour Silver. Raymond James Financial reaffirmed an “outperform” rating on October 10, while CIBC Capital Markets upgraded the stock from “hold” to “strong-buy” on November 3. Additionally, B. Riley increased its target price from $7.00 to $11.00 and classified the company as a “buy” on November 13. CIBC also set a new price target of $16.00, further indicating a positive outlook.

Despite this optimistic sentiment from some analysts, Weiss Ratings maintained a “sell (D-)” rating on the stock as of October 8. Overall, MarketBeat reports that Endeavour Silver holds an average rating of “buy” among analysts, with a consensus price target set at $12.67.

Institutional Investment Trends

Recent changes in institutional holdings reflect growing interest in Endeavour Silver. LPL Financial LLC increased its stake by 129.7%, now owning 648,822 shares valued at approximately $2,770,000. Similarly, Atria Wealth Solutions Inc. boosted its holdings by 23.9%, bringing its shares to 26,494 worth $113,000.

The Swiss National Bank also enhanced its position by 5.2%, now owning 511,400 shares valued at $2,184,000. Additionally, National Bank of Canada FI raised its stake by 23.0%, while Invesco Ltd. increased its stake significantly by 56.0%, owning 3,301,752 shares valued at approximately $14,098,000. Currently, institutional investors hold 20.06% of the company’s stock.

Endeavour Silver operates primarily in the silver mining sector, focusing on the acquisition, exploration, and development of mineral properties in both Chile and the United States. The company, formerly known as Endeavour Gold Corp., continues to explore opportunities within the precious metals market.

As the market adjusts to these latest developments, investors are urged to consider the varying analyst ratings and financial reports as they assess their positions in Endeavour Silver.