Sheets Smith Investment Management has entered a new investment in Alamos Gold Inc. (NYSE: AGI) during the third quarter of 2023, acquiring 47,215 shares valued at approximately $1,646,000. This decision, disclosed in filings with the Securities and Exchange Commission, highlights a growing interest among institutional investors in the basic materials sector.
The investment landscape for Alamos Gold has seen significant movement recently. Addenda Capital Inc. increased its stake in the company by 12.3% during the second quarter, bringing its total ownership to 1,944,928 shares, valued at around $51,657,000. This acquisition included an additional 212,918 shares acquired in the last quarter. Other notable changes include Calamos Wealth Management LLC, which invested $3,070,000 in Alamos Gold, and Y Intercept Hong Kong Ltd., which purchased shares worth $1,502,000.
In addition, PCJ Investment Counsel Ltd. raised its holdings by 37.9%, now owning 85,740 shares valued at $2,282,000. Similarly, Wealth Enhancement Advisory Services LLC increased its stake by 20.9%, acquiring 14,444 shares valued at $390,000. Currently, institutional investors and hedge funds own 64.33% of Alamos Gold’s stock.
Analyst Ratings and Market Performance
Recent analysis from various financial institutions indicates a positive outlook for Alamos Gold. Bank of America has recently raised its target price for the shares from $40.00 to $43.00, maintaining a “buy” rating. TD Securities reiterated its “buy” recommendation, while BMO Capital Markets reaffirmed an “outperform” rating.
Research from Jefferies Financial Group restated a “buy” rating with a target price of $49.00. Overall, analysts have expressed optimism, with three investment analysts rating the stock as a Strong Buy, ten as Buy, and one as Hold. The consensus rating stands at “Buy,” with a target price of $43.00 according to data from MarketBeat.com.
On the trading front, Alamos Gold shares opened at $37.74 recently, reflecting a 0.3% increase. The company boasts a market capitalization of $15.85 billion with a PE ratio of 29.49. The stock has exhibited volatility over the past year, with a 52-week low of $17.80 and a high of $39.44.
Financial Results and Future Outlook
Alamos Gold announced its latest earnings results on October 29, 2023. The company reported earnings per share of $0.37, meeting the consensus estimates. Revenue for the quarter reached $462.30 million, slightly below the expected $490.96 million. The firm showed a year-on-year revenue increase of 28.1%, with a return on equity of 12.36% and a net margin of 33.46%.
Looking ahead, analysts predict that Alamos Gold will post earnings per share of 1.29 for the current financial year. The company has also announced a quarterly dividend of $0.025, paid on December 18, 2023, to shareholders recorded on December 4, 2023. This results in an annualized dividend payout of $0.10 with a yield of 0.3%.
Alamos Gold Inc. continues to engage in the acquisition, exploration, development, and extraction of precious metals, primarily gold, across Canada and Mexico. The company holds interests in several mining operations, including the Young-Davidson mine and Island Gold mine in Ontario, Canada, as well as the Mulatos mine in Sonora, Mexico.
As institutional investments grow and analysts maintain a positive outlook, Alamos Gold Inc. appears well-positioned for future developments in the precious metals market.
