A Technical View of the TRX Gold Corporation (TRX)

TRX Gold Corporation (AMEX:TRX) saw a downside of -4.50% to close Monday at $0.55 after subtracting -$0.03 on the day. The 5-day average trading volume is 584,360 shares of the company’s common stock. It has gained $0.5960 in the past week and touched a new high 1 time within the past 5 days. An average of 506,625 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 490,686.

TRX’s 1-month performance is -3.47% or -$0.0198 on its low of $0.5200 reached on 04/24/23. The company’s shares have touched a 52-week low of $0.27 and high of $0.60, with the stock’s rally to the 52-week high happening on 05/08/23. YTD, TRX has achieved 62.93% or $0.2129 and has reached a new high 21 times. However, the current price is down -7.67% from the 52-week high price.

Valuation Metrics

TRX stock has a beta of 0.90. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.55 while the price-to-book (PB) in the most recent quarter is 2.90, with the price to cash flow ratio at 22.45.

TRX Gold Corporation’s quick ratio for the period ended November 29 was 0.80, with the current ratio over the same period at 1.10. In terms of profitability, the gross margin trailing 12 months is 56.10%. The trailing 12-month EBITDA margin is 4.02% while for the period ending November 29, TRX Gold Corporation’s operating margin was 29.60%. The firm’s gross profit as reported stood at $9.38 million against revenue of $15.09 million.

Earnings Surprise

For the quarterly period ending November 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -192.5% to -$4.0 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected TRX to announce $0.01 per share in earnings in its latest quarter, but it posted $0, representing a -100.00% surprise. EBITDA for the quarter stood at more than $2.88 million. TRX stock balance sheet for the quarter ending November 29 shows that total liabilities totaled 21.43 million, with total debt at $0.13 million.

Let’s look briefly at TRX Gold Corporation (TRX) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 15 May was 48.52% to suggest the stock is trending Neutral, with historical volatility in this time period at 61.17%.

The stock’s 5-day moving average is $0.5672, reflecting a -5.52% or -$0.0322 change from its current price. TRX is currently trading +3.49% above its 20-day SMA, +70.54% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +25.30% and SMA200 by+18.56%.

Stochastic %K and %D was 44.03% and 54.34% and the average true range (ATR) pointed at 0.0270. The RSI (14) points at 51.71%, while the 14-day stochastic is at 31.64% with the period’s ATR at 0.0263. The stock’s 9-day MACD Oscillator is pointing at -0.0109 and -0.0008 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for TRX Gold Corporation (AMEX: TRX), Alliance Global Partners launched coverage with a Buy rating.

What is TRX’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $1.00 and a high of $1.50, with their median price target at $1.10. Looking at these predictions, the average price target given by analysts is for TRX Gold Corporation (TRX) stock is $1.20.

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