Zacks Research Downgrades Equinox Gold to Strong Sell Rating

Shares of Equinox Gold (NYSEAMERICAN:EQX) have been downgraded from a “hold” to a “strong sell” rating by Zacks Research, according to a report published on Wednesday. This significant change comes amidst mixed reactions from various equities research analysts regarding the company’s stock performance.

On August 15, 2023, National Bankshares reiterated an “outperform” rating for Equinox Gold, while BMO Capital Markets, which began coverage on June 18, issued an “outperform” rating as well. Cormark upgraded the company from a “hold” to a “moderate buy” on the same day as National Bankshares’ report. In a contrasting view, CIBC World Markets elevated its rating from “hold” to “strong buy” on October 9, 2023. TD Securities continues to endorse the stock with a “buy” rating, reaffirming its position on September 5, 2023.

Currently, the consensus among analysts shows a mixed outlook: two analysts have rated the stock as a strong buy, four as a buy, two as a hold, and one as a sell. According to data from MarketBeat.com, Equinox Gold has an average rating of “moderate buy” with an average target price of $26.00.

Equinox Gold Performance and Financials

On the trading front, shares of Equinox Gold opened at $12.02 on Wednesday, reflecting a decline of 5.5%. The company boasts a market capitalization of $9.41 billion, a price-to-earnings (PE) ratio of -200.30, and a beta of 1.14. Over the past year, the stock reached a low of $4.95 and a high of $12.93. Its 50-day moving average stands at $9.91, while the 200-day moving average is at $7.61. Financial ratios indicate a debt-to-equity ratio of 0.29, a current ratio of 0.94, and a quick ratio of 0.53.

Equinox Gold recently reported its earnings for the quarter ending August 13, 2023, revealing earnings per share of $0.11, surpassing the consensus estimate of $0.02 by $0.09. The company generated revenue of $478.64 million, exceeding analysts’ expectations of $470.00 million. Notably, Equinox Gold experienced a 77.7% year-on-year increase in quarterly revenue. The previous year’s earnings per share during the same period were a loss of ($0.01). Analysts predict that Equinox Gold will report earnings per share of 0.85 for the current fiscal year.

Institutional Investments and Ownership

Recent activity from institutional investors and hedge funds indicates changes in their stakes in Equinox Gold. Ruffer LLP significantly increased its stake by 322.1% during the second quarter, now holding 7,499,601 shares valued at approximately $43.27 million. Eschler Asset Management LLP entered a new position in Equinox Gold in the first quarter, valued at around $968,000. Invenomic Capital Management LP also raised its position by 8.2%, owning 1,320,532 shares valued at $9.09 million after purchasing an additional 99,691 shares.

Credit Industriel ET Commercial and UMB Bank n.a. also acquired new positions in Equinox Gold during the second quarter, with valuations of approximately $149,000 and $200,000, respectively. Currently, institutional investors and hedge funds collectively own 38.85% of Equinox Gold’s stock.

Equinox Gold Corp. is engaged in the exploration, acquisition, development, and operation of mineral properties across the Americas, focusing primarily on gold and silver deposits. The company holds interests in properties located in California, Mexico, Brazil, and Ontario, Canada, positioning itself as a key player in the mining sector.