Royal Bank Of Canada Forecasts Strong Price Appreciation for Royal Gold (NASDAQ:RGLD) Stock

Key Points

• Royal Bank of Canada raised Royal Gold’s price target from $305 to $325 and maintained an “outperform” rating, implying 32% upside from the prior close.
• Analyst sentiment remains broadly positive: Royal Gold has a “Moderate Buy” consensus rating and an average price target of $289.64, based on eight Buy, four Hold, and one Sell recommendation.
• Royal Gold reported quarterly earnings of $2.56 per share and revenue of $468.98 million, exceeding estimates; revenue increased 114.9% year over year.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL had its price target upped by investment analysts at Royal Bank Of Canada from $305.00 to $325.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has an "outperform" rating on the basic materials company's stock. Royal Bank Of Canada's target price would indicate a potential upside of 32.00% from the company's previous close.

A number of other research analysts have also weighed in on RGLD. Jefferies Financial Group cut their target price on shares of Royal Gold from $318.00 to $311.00 and set a "buy" rating for the company in a research report on Monday, July 6th. Weiss Ratings lowered Royal Gold from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, August 4th. TD boosted their price objective on Royal Gold from $289.00 to $315.00 and gave the stock a "buy" rating in a research report on Thursday, September 10th. UBS Group raised their target price on Royal Gold from $280.00 to $285.00 and gave the company a "buy" rating in a report on Friday, August 7th. Finally, Scotiabank reissued a "sector perform" rating and issued a $310.00 price objective on shares of Royal Gold in a research report on Tuesday, July 14th. Eight equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $289.64.

Royal Gold Stock Performance

Royal Gold stock traded down $4.95 during trading hours on Wednesday, reaching $246.21. 197,313 shares of the company were exchanged, compared to its average volume of 863,175. Royal Gold has a 12 month low of $168.88 and a 12 month high of $306.25. The company has a current ratio of 2.92, a quick ratio of 2.68 and a debt-to-equity ratio of 0.05. The stock has a 50-day moving average of $228.04 and a 200 day moving average of $234.35. The firm has a market cap of $20.86 billion, a price-to-earnings ratio of 26.87, a PEG ratio of 1.87 and a beta of 0.50.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL last released its quarterly earnings results on Wednesday, August 5th. The basic materials company reported $2.56 EPS for the quarter, beating analysts' consensus estimates of $2.55 by $0.01. The company had revenue of $468.98 million for the quarter, compared to analyst estimates of $458.85 million. Royal Gold had a net margin of 47.74% and a return on equity of 12.06%. The company's quarterly revenue was up 114.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.81 earnings per share. As a group, research analysts anticipate that Royal Gold will post 10.26 earnings per share for the current year.

Insider Activity at Royal Gold

In other news, SVP Randy Shefman sold 500 shares of Royal Gold stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $262.80, for a total transaction of $131,400.00. Following the sale, the senior vice president owned 8,082 shares of the company's stock, valued at approximately $2,123,949.60. This trade represents a 5.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.35% of the company's stock.

Institutional Investors Weigh In On Royal Gold

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in Royal Gold in the 2nd quarter valued at $2,177,865,000. Capital International Investors acquired a new stake in shares of Royal Gold in the 4th quarter valued at $332,026,000. Van ECK Associates Corp grew its holdings in shares of Royal Gold by 18.1% in the 4th quarter. Van ECK Associates Corp now owns 5,900,432 shares of the basic materials company's stock worth $1,311,607,000 after purchasing an additional 905,488 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Royal Gold by 89.1% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,855,877 shares of the basic materials company's stock worth $412,543,000 after acquiring an additional 874,329 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Royal Gold during the 2nd quarter valued at $150,762,000. Institutional investors and hedge funds own 83.65% of the company's stock.

About Royal Gold

Royal Gold, Inc is a precious metals streaming and royalty company headquartered in Denver, Colorado. Rather than operating mines directly, the company provides financing to mining companies in exchange for the right to purchase a portion of the metals produced from certain projects at predetermined prices, or to receive revenue-based payments tied to mineral production.

Royal Gold's portfolio is organized into two primary businesses: streams and royalties. Its streaming agreements generally provide rights to purchase gold, silver, copper or other metals from mining operations, while its royalty interests entitle the company to a percentage of revenue or production from a mine without bearing the operator's ongoing costs.

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