What Are The Risk Factors For New Gold Inc. (NGD)?

As of Thursday close, New Gold Inc.’s (AMEX:NGD) stock was down -$0.01, moving down -0.93 percent to $1.06. The average number of shares traded per day over the past five days has been 2,316,920 shares. 3 times new highs have been achieved over the past 5 days, with a $0.0200 gain in that time frame. In the last twenty days, the average volume was 2,945,260, while in the previous 50 days, it was 3,100,106.

Since last month, NGD stock retreated -13.82%. Shares of the company fell to $1.0100 on 07/06/23, the lowest level in the past month. A 52-week high of $1.48 was reached on 05/09/23 after having rallying from a 52-week low of $0.61. Since the beginning of this year, NGD’s stock price has risen by 8.16% or $0.0800, and marked a new high 20 times. However, the stock has declined by -28.38% since its 52-week high.

Valuation Metrics

The stock’s beta is 1.54. Besides these, the trailing price-to-sales (P/S) ratio of 1.13, the price-to-book (PB) ratio of 0.82.

Financial Health

In the three months ended March 30, New Gold Inc.’s quick ratio stood at 1.50, while its current ratio was 2.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.45, and the total debt-to-equity ratio was 0.46. On the profitability front, the trailing twelve-month gross margin is 70.60% percent. In the year ended March 30, EBITDA margin amounted to 30.45%, whereas operating margins totaled -2.10%. Based on annual data, NGD earned $221.7 million in gross profit and brought in $604.4 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -1.30%. Return on equity (ROE) for the past 12 months was -9.40%.

In New Gold Inc.’s quarter-end financial report for March 30, it reported total debt of $9.4 million against cash and short-term investments of $4.3 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. NGD’s revenue rose 0.02% during the quarter, while net income inched up to $604.5 million. While analysts expected New Gold Inc. to report $0.01 quarterly earnings, the actual figure was $0.03 per share. During the quarter, the company generated $76.2 million in EBITDA. The liabilities of New Gold Inc. were 1.35 billion at the end of its most recent quarter ended March 30, and its total debt was $402.8 million.

Technical Picture

This quick technical analysis looks at New Gold Inc.’s (NGD) price momentum. With a historical volatility rate of 57.56%, the RSI 9-day stood at 42.12% on 06 July.

With respect to its five-day moving average, the current New Gold Inc. price is up by +1.92% percent or $0.0200. At present, NGD shares trade -13.11% below its 20-day simple moving average and +3.92% percent above its 100-day simple moving average. However, the stock is currently trading approximately -17.83% below its SMA50 and +17.10% above its SMA200.

Stochastic coefficient K was 55.08% and Stochastic coefficient D was 66.83%, while ATR was 0.0616. Given the Stochastic reading of 35.71% for the 14-day period, the RSI (14) reading has been calculated as 40.98%. As of today, the MACD Oscillator reading stands at 0.0200, while the 14-day reading stands at 0.0193.

With a median target price of $1.50, the current consensus forecast for the stock is $1.05 – $2.02. Based on these forecasts, analysts predict New Gold Inc. (NGD) will achieve an average price target of $1.48.

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