IAMGOLD (NYSE:IAG) Shares Gap Down on Disappointing Earnings

IAMGOLD Co. (NYSE:IAG) (TSE:IMG)’s stock price gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $6.31, but opened at $5.90. IAMGOLD shares last traded at $5.77, with a volume of 5,186,018 shares traded.

The mining company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.05). IAMGOLD had a net margin of 49.56% and a return on equity of 10.01%. The business had revenue of $469.90 million during the quarter, compared to analysts’ expectations of $498.68 million.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on IAG. CIBC upgraded IAMGOLD from a “neutral” rating to a “sector outperform” rating in a report on Monday, December 2nd. Cibc World Mkts upgraded shares of IAMGOLD from a “hold” rating to a “strong-buy” rating in a report on Monday, December 2nd. Raymond James upgraded shares of IAMGOLD from a “strong sell” rating to a “hold” rating in a report on Monday, February 3rd. Finally, StockNews.com upgraded IAMGOLD from a “hold” rating to a “buy” rating in a report on Thursday, February 6th. Three investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, IAMGOLD has a consensus rating of “Moderate Buy” and a consensus price target of $6.57.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of IAG. Van ECK Associates Corp raised its holdings in shares of IAMGOLD by 8.8% in the 3rd quarter. Van ECK Associates Corp now owns 52,894,690 shares of the mining company’s stock valued at $276,639,000 after buying an additional 4,267,084 shares during the period. Donald Smith & CO. Inc. grew its holdings in shares of IAMGOLD by 0.7% in the fourth quarter. Donald Smith & CO. Inc. now owns 31,233,874 shares of the mining company’s stock valued at $161,167,000 after purchasing an additional 216,751 shares in the last quarter. RCF Management L.L.C. acquired a new position in shares of IAMGOLD in the fourth quarter worth $128,174,000. Vanguard Group Inc. increased its position in shares of IAMGOLD by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 21,232,871 shares of the mining company’s stock worth $109,741,000 after acquiring an additional 321,458 shares during the period. Finally, Millennium Management LLC boosted its holdings in IAMGOLD by 88.4% in the fourth quarter. Millennium Management LLC now owns 10,330,194 shares of the mining company’s stock valued at $53,307,000 after purchasing an additional 4,846,254 shares during the period. 47.08% of the stock is currently owned by hedge funds and other institutional investors.

IAMGOLD Price Performance

The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.61 and a current ratio of 0.89. The stock has a market capitalization of $3.30 billion, a price-to-earnings ratio of 4.51 and a beta of 1.56. The company has a 50 day moving average of $5.76 and a 200 day moving average of $5.39.

About IAMGOLD

IAMGOLD Corporation, through its subsidiaries, operates as an intermediate gold producer and developer in Canada and Burkina Faso. It owns 100% interest in the Westwood project that covers an area of 1,925 hectare and located in Quebec; a 60% interest in the Côté gold project, which covers an area of 596 square kilometer located in Ontario, Canada; and a 90% interests in the Essakane project that covers an area of 274,000 square kilometer situated in Burkina Faso.