Please ensure Javascript is enabled for purposes of website accessibility

Why First Majestic Silver Corp.'s Stock Jumped Nearly 11% in March

By Matthew DiLallo – Apr 5, 2018 at 3:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The silver miner benefited from a string of positive news.

What happened

Shares of First Majestic Silver Corp. (AG 10.33%) took off in March, rising 10.9% for the month after reporting solid fourth-quarter results, getting a favorable shareholder vote on a key acquisition, and renewing its stock repurchase program.

So what

First Majestic Silver reported its fourth-quarter and full-year results after the market closed on the last day of February. On the one hand, that report was a bit disappointing since the company reported an adjusted loss of $0.04 per share, which was $0.02 per share worse than analysts' expectations due to higher costs and lower production. However, the company also noted that it sees a reversal of fortunes ahead as the investments it made last year should deliver a double-digit increase in its silver production this year.

A piece of silver in the hands of a miner.

Image source: Getty Images.

The company also reported positive news on the strategic front in March after shareholders of Primero Mining voted in favor of First Majestic's acquisition of the company. The deal will add one of Mexico's largest and richest mines to First Majestic's portfolio when it closes at the end of April.

First Majestic also renewed its share repurchase program last month after the previous one expired in March. While the company only repurchased 230,000 shares under its prior authorization, it could buy back nearly 8.3 million shares over the next year under its latest program, or 5% of its outstanding stock.

Now what

First Majestic Silver is starting to turn the corner after a challenging year when production declined and took its shares down with it. This year, however, looks much more promising thanks to the investments it made last year as well as its upcoming acquisition, which when combined with its share repurchase program could enable this silver stock to maintain its upward momentum.

Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

First Majestic Silver Stock Quote
First Majestic Silver
AG
$7.26 (10.33%) $0.68
Primero Mining Corp. Stock Quote
Primero Mining Corp.
PPP

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.