Equinox Gold Faces Downgrade to “Strong Sell” Amid Analyst Review

Equinox Gold (NYSEAMERICAN:EQX) has been downgraded from a hold rating to a “strong sell” rating by Zacks Research, according to a report released on Wednesday. This significant change comes as part of a series of evaluations from various equities research analysts, reflecting a shift in sentiment surrounding the company’s stock.

In addition to Zacks Research’s assessment, other analysts have recently provided their insights on Equinox Gold. National Bankshares reaffirmed an “outperform” rating in a report dated August 15, 2023. Meanwhile, BMO Capital Markets initiated coverage on the company with a similar “outperform” rating on June 18, 2023. Cormark elevated Equinox Gold from a “hold” to a “moderate buy” rating on August 15, and CIBC World Markets upgraded the stock to a “strong buy” on October 9. TD Securities also maintained a “buy” rating as of September 5, 2023.

As it stands, two analysts have given Equinox Gold a “strong buy,” four have issued a “buy,” two have maintained a “hold,” and one has assigned a “sell” rating. According to MarketBeat.com, the stock currently holds an average rating of “moderate buy” with a projected target price of $26.00.

Current Stock Performance

Equinox Gold’s stock opened at $12.02 on Wednesday, reflecting a decline of 5.5% from previous trading sessions. The company’s market capitalization stands at approximately $9.41 billion. Its price-to-earnings ratio is reported at -200.30, with a beta of 1.14. Over the past year, the stock has fluctuated between a low of $4.95 and a high of $12.93. Presently, the 50-day moving average is $9.91, while the 200-day moving average is $7.61.

In its most recent earnings report released on August 13, 2023, Equinox Gold reported earnings per share (EPS) of $0.11, surpassing analysts’ expectations of $0.02 by $0.09. The company posted revenue of $478.64 million for the quarter, exceeding predictions of $470.00 million. Notably, Equinox Gold’s quarterly revenue marked a substantial increase of 77.7% compared to the same quarter the previous year, when it recorded an EPS of -$0.01. Analysts forecast that Equinox Gold will achieve an EPS of 0.85 for the current year.

Institutional Investor Activity

Recent changes by institutional investors and hedge funds have also affected Equinox Gold’s stock dynamics. Ruffer LLP significantly increased its stake in the company by 322.1% during the second quarter, now holding 7,499,601 shares valued at approximately $43.27 million after acquiring an additional 5,722,871 shares. Additionally, Eschler Asset Management LLP initiated a new position in Equinox Gold during the first quarter, valued at approximately $968,000.

Invenomic Capital Management LP raised its position by 8.2% in the same period, now owning 1,320,532 shares worth about $9.09 million. Other firms, such as Credit Industriel ET Commercial and UMB Bank n.a., also entered new positions in Equinox Gold, with investments of approximately $149,000 and $200,000, respectively. Currently, institutional investors collectively hold 38.85% of the company’s stock.

Equinox Gold Corp. is engaged in exploring, acquiring, developing, and operating mineral properties across the Americas, primarily focusing on gold and silver deposits. The company holds interests in properties located in the United States, Mexico, Brazil, and Canada. As the market continues to react to these developments, stakeholders will be closely monitoring Equinox Gold’s performance and strategic direction in the coming months.