Does Barrick Gold Corporation (GOLD) Have A Cheap Price Or Is It Risky?

The stock of Barrick Gold Corporation (NYSE:GOLD) decreased by -$0.21 on Monday to finish at $15.27, down -1.36 percent. The last five days have seen an average of 23,088,760 shares of common stock traded. 16 times new highs were reached in the current year, with a fall of -$3.73. The average number of shares traded over the last 20 days was 23,297,150, while the average volume over the last 50 days totaled 22,102,660.

GOLD stock dropped -4.08% since last month. On 09/26/22, the company’s shares reached a one-month low of $13.97. The stock touched a high of $25.78 on 03/08/22, after rallying from a low of $13.97 in 52 weeks. The price of GOLD stock has declined by -18.72% or -$3.73 this year, reaching a new high 16 times. Still, the stock price is down -40.76% from the 52-week high.

Valuation Metrics

Barrick Gold Corporation (GOLD) has a trailing price-to-earnings (P/E) ratio of 13.59. Beta for the stock is 0.32. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.38, the price-to-book (PB) ratio of 1.13, and the price-to-cash flow ratio of 30.83.

Company paid $0.1560 per share in dividends, a decrease of -22.0% from $0.20 last year. A $0.0440 dividend decrease was reported on Monday August 8 2022.

Financial Health

For the three months ended June 29, Barrick Gold Corporation’s quick ratio was 3.20, while its current ratio was 4.00, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.21, and the total debt to equity ratio is 0.21. As far as profitability goes, gross margin for the trailing twelve months is 38.70% percent. Barrick Gold Corporation’s operating margin stood at 40.10% for the same period. Based on annual data, it had gross profit of $4.9 billion and revenue of $11.98 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. GOLD’s return on assets (ROA) during the last 12 months has been 4.30%. There was a 12.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 8.30%.

Earnings Surprise

According to Barrick Gold Corporation’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. It was predicted that Barrick Gold Corporation’s quarterly earnings would be $0.29, but it ended up being $0.26, beating the consensus by 11.50%. EBITDA was $1.48 billion for the quarter. At the end of Barrick Gold Corporation’s most recent quarter ended June 29, its liabilities totaled 14.31 billion, while its total debt was $5.14 billion.

Technical Picture

Here’s a quick look at Barrick Gold Corporation’s (GOLD) price momentum from a technical perspective. As of 10 October, the RSI 9-day stood at 46.88%, suggesting the stock is Neutral, with a 42.37% historical volatility rate.

The stochastic %K and %D were 66.01% and 74.07% respectively, while the average true range (ATR) was 0.56. Based on the 14-day stochastic reading of 51.59%, the RSI (14) reading is 47.66%. On the 9-day MACD Oscillator, the stock is at 0.04, and the 14-day reading is at 0.39.

Analyst Ratings

In its analyst report released on September 12, 2022, Goldman began covering Barrick Gold Corporation (NYSE: GOLD). The stock was rated as a Neutral by the brokerage firm. Analysts have assigned Barrick Gold Corporation (GOLD) an Overweight rating. GOLD is a stock that is recommended for selling by 0 brokerage firms, while 8 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 3 rates it overweight and 14 others recommend it as a buy.

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

The current consensus forecast for the stock is between $15.00 and $28.00, with a median target price of $23.38. In analyzing these forecasts, the average price target given by analysts for Barrick Gold Corporation (GOLD) is $22.36.

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