AG Should I Buy
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First Majestic Silver Corp (AG) is not a strong buy at the moment given the investor's long-term strategy and beginner level. Despite some positive catalysts like hedge fund buying and analyst upgrades, the company's recent financial performance, technical indicators, and broader market conditions suggest caution. The stock may be better suited for more experienced investors willing to navigate volatility.
The technical indicators for AG show a bearish trend. The MACD histogram is negative and contracting, RSI is at 33.033 (neutral but leaning towards oversold), and moving averages are converging without a clear direction. The stock is trading below its pivot level of 20.919, with key support at 18.375 and resistance at 23.464.
Hedge funds are significantly increasing their positions, with a 7441.77% increase in buying over the last quarter.
Analysts have upgraded the stock with higher price targets, citing value-creating catalysts like expanding processing capacity and strong bullion production.
Gross margin improved significantly YoY, reaching 51.26%.
Recent market sentiment is negative, with the stock experiencing a -7.03% drop in the regular market session and a -3.13% pre-market change.
Financial performance in 2025/Q4 showed a significant drop in net income (-716.81% YoY) and EPS (-525.00% YoY).
Broader market volatility, as indicated by the VIX index rising to 23.5, and declining silver prices have negatively impacted the sector.
In 2025/Q4, revenue increased by 169.20% YoY to $463.92 million, but net income dropped sharply by -716.81% YoY to $83.13 million. EPS also declined significantly by -525.00% YoY to 0.17. Gross margin improved to 51.26%, up 83.14% YoY.
Analysts are generally positive on AG. BMO Capital upgraded the stock to Outperform with a price target of C$35, citing value-creating catalysts. H.C. Wainwright raised its price target to $30, highlighting strong bullion production and high silver prices. Scotiabank raised its price target to $23 but maintained a Sector Perform rating.
