Do You Think It Is A Good Idea To Invest In TRX Gold Corporation (TRX)?

The stock of TRX Gold Corporation (AMEX:TRX) increased by $0.01 on Wednesday to $0.54, up 0.56 percent. The last five days have seen an average of 450,694 shares of common stock traded. 17 times new highs were reached in the current year, with a gain of $0.1977. The average number of shares traded over the last 20 days was 464,259, while the average volume over the last 50 days totaled 366,027.

TRX stock appreciated 19.08% since last month. On 03/13/23, the company’s shares reached a one-month low of $0.4200. The stock touched a high of $0.55 on 04/12/23, after rallying from a low of $0.26 in 52 weeks. The price of TRX stock has risen by 58.44% or $0.1977 this year, reaching a new high 17 times. Still, the stock price is down -2.55% from the 52-week high.

Valuation Metrics

TRX Gold Corporation (TRX) has a trailing price-to-earnings (P/E) ratio of 29.61. Beta for the stock is 0.87. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.97, the price-to-book (PB) ratio of 2.81, and the price-to-cash flow ratio of 24.28.

Financial Health

For the three months ended November 29, TRX Gold Corporation’s quick ratio was 0.80, while its current ratio was 1.10, indicating its inability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 59.20% percent. TRX Gold Corporation’s EBITDA margin for the year ended November 29 was 4.02%, whereas its operating margin stood at 24.80% for the same period. Based on annual data, it had gross profit of $9.38 million and revenue of $15.09 million.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. TRX’s return on assets (ROA) during the last 12 months has been 7.30%. There was a 0.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 9.80%.

Earnings Surprise

According to TRX Gold Corporation’s quarterly financial report for the quarter that ended November 29. A higher net income was reported in the quarter under review than the previous quarter. It was predicted that TRX Gold Corporation’s quarterly earnings would be $0, but it ended up being $0.01. EBITDA was $3.47 million for the quarter. At the end of TRX Gold Corporation’s most recent quarter ended November 29, its liabilities totaled 18.3 million, while its total debt was $0.14 million.

Technical Picture

Here’s a quick look at TRX Gold Corporation’s (TRX) price momentum from a technical perspective. As of 11 April, the RSI 9-day stood at 65.27%, suggesting the stock is Neutral, with a 57.74% historical volatility rate.

The stochastic %K and %D were 83.37% and 79.62% respectively, while the average true range (ATR) was 0.0299. Based on the 14-day stochastic reading of 95.91%, the RSI (14) reading is 63.21%. On the 9-day MACD Oscillator, the stock is at 0.0126, and the 14-day reading is at 0.0176.

Analyst Ratings

In its analyst report released on February 16, 2021, Alliance Global Partners began covering TRX Gold Corporation (AMEX: TRX). The stock was rated as a Buy by the brokerage firm. Analysts have assigned TRX Gold Corporation (TRX) an Buy rating. TRX is a stock that is recommended for selling by 0 brokerage firms, while 0 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 3 others recommend it as a buy.

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

The current consensus forecast for the stock is between $1.00 and $1.50, with a median target price of $1.10. In analyzing these forecasts, the average price target given by analysts for TRX Gold Corporation (TRX) is $1.20.

gold