Gatos Story

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GATO -- USA Stock  

USD 9.32  1.01  9.78%

Gatos Silver is scheduled to announce its earnings tomorrow. As many millenniums are getting excited about basic materials space, it is only fair to outline the feasibility of shorting Gatos Silver. Should we be more optimistic in anticipation of a recovery?
Published over three weeks ago
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Is Gatos (NYSE:GATO) outlook optimistic based on the latest analyst consensus?
On a scale of 0 to 100, Gatos Silver holds a performance score of 5. The company retains a Market Volatility (i.e. Beta) of 1.6641, which attests to a somewhat significant risk relative to the market. Let's try to break down what Gatos's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Gatos Silver will likely underperform. Although it is vital to follow Gatos Silver current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-one technical indicators for Gatos Silver, which you can use to evaluate the performance of the firm. Please utilizes Gatos Silver variance, value at risk, as well as the relationship between the Value At Risk and skewness to make a quick decision on whether Gatos Silver current trending patterns will revert.
What is the right price you would pay to acquire a share of Gatos Silver? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

How important is Gatos Silver's Liquidity

Gatos Silver financial leverage refers to using borrowed capital as a funding source to finance Gatos Silver ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gatos Silver financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Gatos Silver's total debt and its cash.

How Gatos utilizes its cash?

To perform a cash flow analysis of Gatos Silver, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gatos Silver is receiving and how much cash it distributes out in a given period. The Gatos Silver cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Gatos Silver Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (18.87 Million)

Acquisition by Gonzales Igor of 10132 shares of Gatos Silver subject to Rule 16b-3

Legal trades by Gatos Silver insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Gatos insider trading alert for grant of common stock by Gonzales Igor, the corporate stakeholder, on 6th of April 2021. This event was filed by Gatos Silver Inc with SEC on 2021-04-06. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Gatos a risky opportunity?

Let's check the volatility. Gatos is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Gatos (NYSE:GATO) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Gatos Silver stock makes you a part-owner of that company.

Gatos Silver Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Gatos Silver. The Gatos consensus assessment is calculated by taking the average estimates from all of the analysts covering Gatos Silver

Buy
1
Hold
1
Strong Buy00.0
Buy150.0
Hold150.0
Sell00.0
Strong Sell00.0

Gatos Silver has 90 percent chance to stay above $11.72 in 2 months

Latest standard deviation is at 6.92. Gatos Silver is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gatos Silver independently to ensure intended market timing strategies are aligned with expectations about Gatos Silver volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gatos Silver's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gatos Silver's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Gatos Silver Investment

Whereas other companies in the other precious metals & mining industry are either recovering or due for a correction, Gatos Silver may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Gatos valuation and our trade advice on Gatos Silver is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gatos Silver.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Gatos Silver. Please refer to our Terms of Use for any information regarding our disclosure principles.

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