Pretium Resources Inc. (PVG) Shares: Are They Risky Or Cheap?

Pretium Resources Inc. (NYSE:PVG) finished Wednesday with an addition of $0.38 to close at $10.96, an upside of 3.59 percent. An average of 854,020 shares of common stock have been traded in the last five days. There was a gain of $0.59 in the past week. The last 20 days have seen an average of 1,106,530 shares traded, while the 50-day average volume stands at 1,270,032.

PVG stock has increased by 6.51% in the last month. The company shares reached their 1-month lowest point of $9.25 on 09/28/21. With the stock rallying to its 52-week high on 01/05/21, shares of the company touched a low of $8.29 and a high of $13.65 in 52 weeks. In spite of this, the price is down -19.71% from the 52-week high.


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Valuation Metrics

Pretium Resources Inc. (PVG) has a trailing price-to-earnings (P/E) ratio of 20.90 for the broader industry and 13.61 for the sector. In the last five years, Pretium Resources Inc.’s PE ratio has ranged between 118.12 and 20.90. The stock’s beta is 0.80. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.28, the price-to-book (PB) ratio at 1.98, and the price-to-cash flow ratio at 8.39.

The quick ratio of Pretium Resources Inc. for the three months ended June 29 was 0.90, and the current ratio was 1.00, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.04 and a total debt to equity ratio of 0.24 for the quarter ending June 29. Pretium Resources Inc.’s EBITDA margin for the year ending June 29 is 52.33%, while its operating margin for the same period stands at 33.40%. Its gross profit as reported stood at $221.28 million compared to revenue of $617.59 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Pretium Resources Inc.’s return on assets was -1.50%, compared to -0.7% over the last five years. In the past year, the return on investment has been 11.40%, and the 5-year average is 0.7%. Meanwhile, the return on equity (ROE) for the past 12 months has been -2.30% and the 5-year average holds at -1.1%. For the broader industry, ROE averaged -13.62 over the past year.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $484.54 million in the quarter, while revenues of $0.0 were grew 37.46%. The analyst consensus anticipated Pretium Resources Inc.’s latest quarter earnings to come in at $0.14 per share, but it turned out to be $0.16, a 14.30% surprise. For the quarter, EBITDA amounted to $73.41 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Pretium Resources Inc. (PVG) price momentum. RSI 9-day as of the close on 13 October was 76.20%, suggesting the stock is Overbought, with historical volatility in this time frame at 22.77%.

As of today, PVG’s price is $10.49 +5.69% or $0.59 from its 5-day moving average. PVG is currently trading +7.24% higher than its 20-day SMA and -5.35% lower than its 100-day SMA. However, the stock’s current price level is +13.81% above the SMA50 and -3.27% below the SMA200.

The stochastic %K and %D were 90.70% and 86.11%, respectively, and the average true range (ATR) was 0.34. With the 14-day stochastic at 94.48% and the average true range at 0.34, the RSI (14) stands at 69.24%. The stock has reached 0.34 on the 9-day MACD Oscillator while the 14-day reading was at 0.60.

Analyst Ratings

National Bank Financial upgraded Pretium Resources Inc. (NYSE: PVG) to a an Outperform rating in its most recent analyst report. Previously, the stock was rated as a a Sector perform.The consensus rating for Pretium Resources Inc. (PVG) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PVG, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.

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

Analysts predict a range of price targets between $10.83 and $16.00, with a median target of $12.62. Taking a look at these predictions, the average price target given by analysts for Pretium Resources Inc. (PVG) stock is $13.20.

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