First Majestic Silver Says It’s Unaware Of Reason For Share Gain


Shares of First Majestic Silver popped by 13% in Thursday’s extended market session after closing 22% higher on the day. The stock has gained about 67% over the past three months.

The rally prompted Canada’s Investment Industry Regulatory Organization to ask First Majestic Silver (AG) to comment on the recent trading activity. The silver mining company said that it “wishes to confirm that it is not aware of any material, undisclosed information related to the Company that would account for the recent increase in the market price and level of trading volume of its ordinary shares.”

Separately, on Jan. 28, the mining company got a reprieve in a case about criminal tax fraud in Mexico, according to Bloomberg. According to the report, the judge in Mexico would not charge the company with criminal tax evasion charges.

The Canadian company, which owns silver producing mines in Mexico, owed the country’s authorities $260.9 million for the tax years of 2010 and 2012, according to the Bloomberg report. (See First Majestic Silver stock analysis on TipRanks)

On Jan. 21, H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on the stock with a price target of $15.50.

Ihle commented about First Majestic’s rise in silver production in 4Q20, “We find this outcome to be quite impressive given the government-mandated temporary shutdown of mining operations due to COVID-19. In conclusion, although the company’s consolidated headline production figures fell YoY, we nonetheless believe that First Majestic’s operations outperformed in FY20 when considering various adverse circumstances encountered.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 analysts recommending a Buy and 3 analysts suggesting a Hold. The average analyst price target of $14.45 implies 14% downside potential to current levels.

The stock has seen insider trading activity in the past three months with corporate insiders selling shares worth $3.6 million.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts