Aya Gold & Silver Inc Stock Forecast:
The average target price for Aya Gold & Silver Inc. based on forecasts from 6 analysts is CAD 11.52 in the next 12 months. The average analyst rating for the company is “Strong Buy.” However, Stock Target Advisor’s own analysis of the company is “Bearish,” based on 2 positive signals and 7 negative signals. The company’s current stock price is CAD 9.44, which has decreased by 2.28% in the past week, increased by 11.72% in the past month, and increased by 0.53% in the past year.
Aya Gold & Silver Inc. News:
Aya Gold & Silver Inc. (AYA:TSX)(AYA:CA) announced on Friday January 13th, that it has received approval for a final short form base shelf prospectus. This follows the filing of a preliminary short form base shelf prospectus, which has been submitted to securities regulators in each province of Canada (excluding the territories).
These filings will allow the Corporation to potentially issue common shares, debt securities, warrants, subscription receipts, or any combination thereof (referred to collectively as “Securities”) worth up to $200 million over the next 25 months in Canada. The Corporation has filed this base shelf prospectus to maintain financial flexibility. The proceeds from these offerings may be used to advance the Corporation’s business objectives and for general corporate purposes, such as funding ongoing operations and/or working capital requirements, including the Zgounder expansion project.
In connection with the filing of the aforementioned base shelf, the Corporation has also refiled its consolidated financial statements for the years ended December 31, 2021 and 2020 for the sole and only purpose of inclusion in the financial statements of the auditors’ report of Raymond Chabot Grant Thornton LLP, the former auditors of the Corporation, for the year ended December 31, 2020. This is to ensure compliance with the regulatory requirements associated with the Corporation’s filing of its final base shelf prospectus.
Analyst Coverage Change:
STA Research, an analyst firm, has updated their recommendation for Aya Gold & Silver Inc. stock. They currently maintain a “Buy” rating, indicating that they believe the stock is a good investment opportunity. Additionally, they have raised their target price for the stock from $10 to $11. This means that they believe the stock will reach $11 in the future and that this new target price is more accurate than the previous one. Overall, this update suggests that STA Research is optimistic about the future performance of Aya Gold & Silver Inc. and that they believe the stock is undervalued at its current price.
Positive Fundamentals:
Aya Gold & Silver Inc. stock has two key financial metrics that are considered positive indicators for the company’s financial health: positive cash flow and positive free cash flow.
Positive cash flow refers to the company’s ability to generate more cash than it is spending. In the most recent four quarters, Aya Gold & Silver Inc. has had positive total cash flow, which means that the company is generating enough cash to cover its expenses and invest in future growth. This is considered a positive sign for the company’s financial health and stability.
Positive free cash flow refers to the amount of cash that a company has left over after it has paid for all of its expenses, including capital expenditures. In the most recent four quarters, Aya Gold & Silver Inc. has had positive total free cash flow, which means that the company is generating enough cash to cover its expenses, invest in future growth, and still have cash left over. This is also considered a positive sign for the company’s financial health and stability, as it suggests that the company has a strong financial position and is able to generate cash even after paying for all its expenses.
Overall, Aya Gold & Silver Inc. stock has positive indicators of financial health, which can make it an attractive investment option for those looking for companies with strong financial positions.
Negative Fundamentals:
Aya Gold & Silver Inc. stock has several drawbacks that investors should be aware of. One major issue is its low market capitalization, which makes it a smaller entity in its sector with below median market capitalization. This can make it less stable in the long run, unless it has a unique technology or market which can help it grow or get acquired in future.
Another issue is its poor risk-adjusted returns. The company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable.
Additionally, the company has below median dividend returns, with an average income yield over the past 5 years that is low compared to its peers. However, this may not be a problem if you are not looking for income.
The stock is also overpriced when compared to earnings, book value, cash flow and free cash flow basis. It is trading high compared to its peers median on a price to earning, book value, cash flow, and free cash flow basis. Investors should proceed with caution if they are considering to buy.
