Analysts Issue Research Notes On New Gold Inc. (NGD)

New Gold Inc. (AMEX:NGD) finished Thursday with a subtraction of -$0.01 to close at $0.87, a downside of -1.11 percent. An average of 2,985,860 shares of common stock have been traded in the last five days. There was a fall of -$0.1082 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 2,767,790 shares traded, while the 50-day average volume stands at 2,935,430.

NGD stock has decreased by -25.47% in the last month. The company shares reached their 1-month lowest point of $0.8520 on 02/23/23. With the stock rallying to its 52-week high on 02/01/23, shares of the company touched a low of $0.61 and a high of $1.99 in 52 weeks. It has reached a new high 12 times so far this year and lost -11.02% or -$0.1080 in price. In spite of this, the price is down -56.18% from the 52-week high.

Valuation Metrics

New Gold Inc. (NGD) has a trailing price-to-earnings (P/E) ratio of 5.45. The stock’s beta is 1.65. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.30, the price-to-book (PB) ratio at 0.46.

Financial Health

The quick ratio of New Gold Inc. for the three months ended September 29 was 1.50, and the current ratio was 2.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.41 and a total debt to equity ratio of 0.42 for the quarter ending September 29. Its gross profit as reported stood at $368.2 million compared to revenue of $745.5 million.

Earnings Surprise

For the three-month period that ended September 29, New Gold Inc. had $4.3 million in cash and short-term investments compared to $9.4 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$1.23 billion in the quarter, while revenues were grew 91.19%. The analyst consensus anticipated New Gold Inc.’s latest quarter earnings to come in at -$0.01 per share, but it turned out to be -$0.02, a -100.00% surprise. For the quarter, EBITDA amounted to $44.3 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at New Gold Inc. (NGD) price momentum. RSI 9-day as of the close on 23 February was 14.00%, suggesting the stock is oversold, with historical volatility in this time frame at 1.68%.

As of today, NGD’s price is $0.9136 -11.04% or -$0.1082 from its 5-day moving average. NGD is currently trading -27.93% lower than its 20-day SMA and +2.08% higher than its 100-day SMA. However, the stock’s current price level is -16.95% below the SMA50 and -35.41% below the SMA200.

The stochastic %K and %D were 5.89% and 7.29%, respectively, and the average true range (ATR) was 0.0533. With the 14-day stochastic at 6.94% and the average true range at 0.0552, the RSI (14) stands at 24.31%. The stock has reached -0.0610 on the 9-day MACD Oscillator while the 14-day reading was at -0.1035.

Analyst Ratings

TD Securities downgraded New Gold Inc. (AMEX: NGD) to a a Reduce rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for New Gold Inc. (NGD) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell NGD, while 4 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.

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

Analysts predict a range of price targets between $0.90 and $1.86, with a median target of $1.30. Taking a look at these predictions, the average price target given by analysts for New Gold Inc. (NGD) stock is $1.31.

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