Volatility Is Your Friend: Silvercorp Metals Inc (SVM) Is Hot Again

Silvercorp Metals Inc (AMEX:SVM) does about 1.83M shares in volume on a normal day but saw 819306 shares change hands in the recent trading day. The company now has a market cap of 625.22M USD. Its current market price is $3.52, marking a decrease of -1.12% compared to the previous close of $3.56. The 52 week high reached by this stock is $4.39 whilst the lowest price level in 52 weeks is $2.08.

Silvercorp Metals Inc (SVM) has a 20-day trading average at $3.47 and the current price is -19.82% off the 52-week high compared with 69.23% distance from its 52-week low. The 50-day simple moving average of the closing price is $3.60 and its 200-day simple moving average is $2.88. If we look at the stock’s price movements over the week, volatility stands at 3.33%, which increases to 3.42% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 49.40 to suggest the stock is neutral.

The consensus objective for the share price is $5.20, suggesting that the stock has a potential upside of 32.31% over the period.

2 analysts have rated it as a buy and 0 have advised that investors hold their positions. The consensus recommendation rating is Buy and Wall Street’s advice is for investors to Strong Buy the stock.

Alliance Global Partners upgraded its price target at $4.50.

Silvercorp Metals Inc (SVM) stock is up 4.76% over the week and -7.61% over the past month. Its price is 33.84% year-to-date and 27.08% over the past year.

The stock last released its quarterly earnings report for quarter ended 3/31/2024, with the company’s earnings per share (EPS) of 0.05 below consensus estimates by -0.02. The company’s next earnings report forecasts estimating quarterly EPS at 0.07 and 0.26 for whole year. Expected sales for next quarter are $65.2M, which analysts say will come at $242.4M for the current fiscal year and next year at $258.2M. In addition, estimates put the company’s current quarterly revenue at an average of $62.8M.

To reach the target analysts have set, the stock logically needs to grow 32.31 percent from here.

Outstanding shares total 177.31M with insiders holding 4.52% of the shares and institutional holders owning 34.11% of the company’s common stock. The company has a return on investment of 7.14% and return on equity of 7.29%. The price to earnings ratio (P/E ratio) amounts to 17.38 while the forward price to earnings ratio is 9.99. The beta has a value of 1.25. Price to book ratio is 1.23 and price to sales ratio is 2.91.