First Majestic Silver (AG) Stock Price and Forecast: Should I buy AG now?
AG shares benefit as the reddit fueled army reportedly looks to silver.
Shares in First Majestic Silver (AG) are up nearly 60% in the last week.
Silver prices have rallied 20% in the last week
First Majestic Silver (AG) is a miner of precious metals and as the name suggests, primarily silver! 65% of AG’s revenue comes from silver with the balance coming from Aluminum. So the performance of AG is largely determined by the price of silver. And Silver has been on a charge lately, rising by over 20% to trade above $30, before falling back somewhat.
Another retail target
The reason for this charge has been the army of Reddit fueled retail traders supposedly turning their attention to silver. However many members of the /wallstreetbets Reddit community dispute this saying they are staying with Gamestop (GME) and AMC.
Another short squeeze?
Either way silver has been on a charge and mining stocks have benefited. TheFTSE100 is heavily weighted to mining stocks and was pulled along for the ride yesterday. To add to the factors helping push First Majestic Silver (AG) higher is that AG has a healthy short interest, of over 23%. This has also drawn attention given the short squeeze moves witnessed across a range of stocks in 2021.
Strong update, results due on Thursday
First Majestic (AG) released a positive update on January 20 with silver production higher than previously guided at 11.6 million ounces. Q4 earnings for AG are due to be released on February 4 2021.