Amerigo Resources (TSE:ARG) Reaches New 1-Year High – Should You Buy?

Shares of Amerigo Resources Ltd. (TSE:ARG) hit a new 52-week high during trading on Monday . The company traded as high as C$8.93 and last traded at C$8.59, with a volume of 351791 shares traded. The stock had previously closed at C$8.93.

Trending Headlines about Amerigo Resources

Here are the key news stories impacting Amerigo Resources this week:

• Positive Sentiment: Amerigo’s recent financial profile remains supportive: its latest reported quarter included C$109.93 million in revenue, C$0.16 EPS, an 18.55% net margin and a 50.54% return on equity. The company also paid a quarterly dividend of $0.04 per share, equivalent to a 1.9% indicated yield. Amerigo Resources insider trades and company information
• Neutral Sentiment: The supplied reports provide no new production, copper-price, earnings-guidance or operational announcement. As a result, current trading appears to be driven primarily by sector momentum and insider-trading disclosures rather than a fresh company fundamental catalyst.
• Negative Sentiment: Several directors disclosed sales totaling 265,000 shares. Director George Ireland sold 245,000 shares for approximately C$2.15 million at C$8.76 per share, reducing his position by roughly 2.4% while still retaining nearly 10.0 million shares. Director Aurora Davidson sold 20,000 shares for approximately C$169,950 at prices between C$8.43 and C$8.62, reducing her holdings to 1.60 million shares. The sales are relatively small compared with their remaining ownership, but clustered insider selling near the stock’s highs could create short-term caution or profit-taking pressure. Amerigo Resources director insider sales

Amerigo Resources Stock Up 4.6%

The firm has a market cap of C$1.46 billion, a P/E ratio of 26.59, a price-to-earnings-growth ratio of 0.32 and a beta of 2.15. The stock’s 50-day moving average is C$7.87 and its 200-day moving average is C$6.73.

Amerigo Resources (TSE:ARG) last issued its quarterly earnings results on Wednesday, July 29th. The company reported C$0.16 earnings per share for the quarter. Amerigo Resources had a net margin of 18.55% and a return on equity of 50.54%. The firm had revenue of C$109.93 million during the quarter. As a group, analysts expect that Amerigo Resources Ltd. will post 0.2850394 EPS for the current fiscal year.

Amerigo Resources Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 18th were given a dividend of $0.04 per share. The ex-dividend date of this dividend was Friday, August 28th. This represents a $0.16 dividend on an annualized basis and a yield of 1.8%. Amerigo Resources’s dividend payout ratio (DPR) is 77.12%.

Insider Transactions at Amerigo Resources

In other Amerigo Resources news, Director George R. Ireland sold 200,000 shares of the firm’s stock in a transaction that occurred on Friday, September 18th. The stock was sold at an average price of C$8.76, for a total value of C$1,752,000.00. Following the completion of the sale, the director owned 9,972,156 shares in the company, valued at approximately C$87,356,086.56. This trade represents a 1.97% decrease in their position. Also, Director Aurora Davidson sold 4,500 shares of Amerigo Resources stock in a transaction on Monday, September 21st. The stock was sold at an average price of C$8.46, for a total transaction of C$38,070.00. Following the sale, the director owned 1,605,954 shares in the company, valued at C$13,586,370.84. This represents a 0.28% decrease in their position. Over the last three months, insiders have sold 405,000 shares of company stock worth $3,437,368. 12.95% of the stock is owned by company insiders.

Amerigo Resources Company Profile

Amerigo is an innovative copper producer with a long-term relationship, through its fully-owned subsidiary Minera Valle Central (‘MVC’), with Corporación Nacional del Cobre de Chile (‘Codelco’), the world’s largest copper producer. Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world’s largest underground copper mine.