Precious Metals
New Gold Inc. (NGD): Why You Should Keep An Eye On It
The stock of New Gold Inc. (AMEX:NGD) increased by $0.02 on Wednesday to $0.95, up 2.51 percent. The last five days have seen an average of 1,809,662 shares…
The stock of New Gold Inc. (AMEX:NGD) increased by $0.02 on Wednesday to $0.95, up 2.51 percent. The last five days have seen an average of 1,809,662 shares of common stock traded. 11 times new highs were reached in the current year, with a fall of -$0.5451. The average number of shares traded over the last 20 days was 2,227,731, while the average volume over the last 50 days totaled 3,214,998.
NGD stock appreciated 21.91% since last month. On 09/27/22, the company’s shares reached a one-month low of $0.7300. The stock touched a high of $2.02 on 02/17/22, after rallying from a low of $0.61 in 52 weeks. The price of NGD stock has declined by -38.23% or -$0.5451 this year, reaching a new high 11 times. Still, the stock price is down -52.98% from the 52-week high.
Valuation Metrics
New Gold Inc. (NGD) has a trailing price-to-earnings (P/E) ratio of 4.95. Beta for the stock is 1.60. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.92, the price-to-book (PB) ratio of 0.46.
Financial Health
For the three months ended June 29, New Gold Inc.’s quick ratio was 2.10, while its current ratio was 2.80, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 74.30% percent. New Gold Inc.’s operating margin stood at 34.10% for the same period. Based on annual data, it had gross profit of $368.2 million and revenue of $745.5 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. NGD’s return on assets (ROA) during the last 12 months has been 4.00%. There was a 18.10% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 10.10%.
Earnings Surprise
According to New Gold Inc.’s quarterly financial report for the quarter that ended June 29, it had $9.4 million in total debt versus $4.3 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $604.5 million, while revenues rose by 0.02% to $0.0. It was predicted that New Gold Inc.’s quarterly earnings would be -$0.02, but it ended up being -$0.02. EBITDA was $26.3 million for the quarter. At the end of New Gold Inc.’s most recent quarter ended June 29, its liabilities totaled 1.3 billion, while its total debt was $409.8 million.
Technical Picture
Here’s a quick look at New Gold Inc.’s (NGD) price momentum from a technical perspective. As of 25 October, the RSI 9-day stood at 62.55%, suggesting the stock is Neutral, with a 42.56% historical volatility rate.
The stochastic %K and %D were 49.29% and 34.23% respectively, while the average true range (ATR) was 0.0584. Based on the 14-day stochastic reading of 71.71%, the RSI (14) reading is 59.03%. On the 9-day MACD Oscillator, the stock is at 0.0324, and the 14-day reading is at 0.0231.
Analyst Ratings
In its most recent analyst report, RBC Capital Mkts raised its rating on New Gold Inc. (AMEX: NGD) to an Outperform. Prior to this, analysts firm rated the stock as a Sector perform. Analysts have assigned New Gold Inc. (NGD) an Overweight rating. NGD is a stock that is recommended for selling by 0 brokerage firms, while 7 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 4 others recommend it as a buy.
What is NGD’s price target for the next 12 months?
The current consensus forecast for the stock is between $0.85 and $2.01, with a median target price of $1.18. In analyzing these forecasts, the average price target given by analysts for New Gold Inc. (NGD) is $1.21.
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