Platinum Group Metals Ltd. (PLG): Technicals Say You should Hold

Platinum Group Metals Ltd. (AMEX:PLG) saw an upside of 6.39% to close Monday at $2.33 after adding $0.14 on the day. The 5-day average trading volume is 1,200,960 shares of the company’s common stock. It has gained $2.42 in the past week. An average of 1,225,345 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 810,042.

PLG’s 1-month performance is -8.63% or -$0.22 on its low of $1.79 reached on 09/29/21. The company’s shares have touched a 52-week low of $1.70 and high of $6.27, with the stock’s rally to the 52-week high happening on 01/06/21. YTD, PLG has lost -49.78% or -$2.31. However, the current price is down -62.84%% from the 52-week high price.


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Valuation Metrics

Platinum Group Metals Ltd. (PLG) has a trailing price-to-earnings (P/E) ratio of 20.90 for the broader industry and 13.47 for the sector.PLG stock has a beta of 1.98. Moving on to other valuation ratios, the price-to-book (PB) in the most recent quarter is 38.83.

Platinum Group Metals Ltd.’s quick ratio for the period ended November 29 was 3.40, with the current ratio over the same period at 3.40 meaning that PLG stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending November 29 was 6.42, while the total debt to equity was 6.71. The firm’s gross profit as reported stood at $5.49 million against revenue of $4.92 million.

Earnings Surprise

For the quarterly period ending November 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected PLG to announce -$0.48 per share in earnings in its latest quarter, but it posted -$0.24, representing a 50.00% surprise. EBITDA for the quarter stood at more than -$1.12 million. PLG stock balance sheet for the quarter ending November 29 shows that total liabilities totaled 33.27 million, with total debt at $30.17 million

Technical Picture

Let’s look briefly at Platinum Group Metals Ltd. (PLG) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 11 October was 63.88% to suggest the stock is trending Neutral, with historical volatility in this time period at 76.15%.

The stock’s 5-day moving average is $2.12, reflecting a +20.73% or $0.40 change from its current price. PLG is currently trading -7.91% above its 20-day SMA, -46.31% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -25.32% and -53.59% respectively.

Stochastic %K and %D was 80.84% and 64.63% and the average true range (ATR) pointed at 0.16. The RSI (14) points at 54.30%, while the 14-day stochastic is at 85.71% with the period’s ATR at 0.15. The stock’s 9-day MACD Oscillator is pointing at 0.15 and 0.16 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Platinum Group Metals Ltd. (AMEX: PLG), CIBC upgraded it to a Sector perform rating. They previously had a Sector underperform rating on the stock. Analysts offering their rating for PLG stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate PLG as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 2 have offered a “buy” rating.

What is PLG’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $3.94 and a high of $6.24, with their median price target at $5.89. Looking at these predictions, the average price target given by analysts is for Platinum Group Metals Ltd. (PLG) stock is $5.35.

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