TD Issues Pessimistic Forecast for Royal Gold (NASDAQ:RGLD) Stock Price

Key Points

• TD lowered Royal Gold’s price target from $315 to $311 while maintaining a “buy” rating, implying roughly 29% upside from the previous close.
• Analyst sentiment remains positive: nine analysts rate the stock a Buy and three rate it a Hold, producing a consensus “Moderate Buy” rating and an average price target of $295.40.
• Royal Gold reported quarterly EPS of $2.56, narrowly beating estimates, while revenue surged 114.9% year over year to $468.98 million; institutional investors own 83.65% of the company.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL had its price target dropped by TD from $315.00 to $311.00 in a note issued to investors on Tuesday, BayStreet reports. The firm presently has a "buy" rating on the basic materials company's stock. TD's target price would suggest a potential upside of 29.09% from the stock's previous close.

Other research analysts also recently issued reports about the company. Weiss Ratings upgraded Royal Gold from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, October 9th. UBS Group raised their target price on Royal Gold from $280.00 to $285.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Royal Bank Of Canada raised their target price on Royal Gold from $305.00 to $325.00 and gave the company an "outperform" rating in a research note on Wednesday, September 16th. Canadian Imperial Bank of Commerce set a $305.00 price target on shares of Royal Gold in a report on Friday. Finally, Scotiabank restated a "sector perform" rating and set a $310.00 price target on shares of Royal Gold in a research report on Tuesday, July 14th. Nine research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Royal Gold presently has a consensus rating of "Moderate Buy" and an average price target of $295.40.

Royal Gold Stock Performance

NASDAQ RGLD traded up $5.00 during trading hours on Tuesday, reaching $240.91. The company's stock had a trading volume of 326,884 shares, compared to its average volume of 837,732. 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 business has a 50-day simple moving average of $246.64 and a 200 day simple moving average of $231.13. Royal Gold has a 52 week low of $168.88 and a 52 week high of $306.25. The stock has a market cap of $20.41 billion, a PE ratio of 26.29, a PEG ratio of 1.78 and a beta of 0.45.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL last posted its earnings results on Wednesday, August 5th. The basic materials company reported $2.56 EPS for the quarter, beating the consensus estimate of $2.55 by $0.01. The company had revenue of $468.98 million during the quarter, compared to analyst estimates of $458.85 million. Royal Gold had a return on equity of 12.06% and a net margin of 47.74%. The business's revenue was up 114.9% compared to the same quarter last year. During the same period in the prior year, the company earned $1.81 earnings per share. Equities research analysts predict that Royal Gold will post 10.30 earnings per share for the current fiscal year.

Insider Activity

In other news, SVP Randy Shefman sold 500 shares of the business's 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 completion of the transaction, the senior vice president directly owned 8,082 shares in the company, valued at approximately $2,123,949.60. The trade was a 5.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.35% of the company's stock.

Institutional Trading of Royal Gold

Several large investors have recently added to or reduced their stakes in RGLD. BlackRock Inc. purchased a new position in Royal Gold in the 2nd quarter worth about $2,177,865,000. Bank of New York Mellon Corp acquired a new stake in Royal Gold during the 2nd quarter worth about $150,762,000. Findlay Park Partners LLP purchased a new stake in Royal Gold during the second quarter valued at about $111,392,000. Bank of America Corp DE purchased a new stake in Royal Gold during the second quarter valued at about $88,124,000. Finally, Deutsche Bank AG purchased a new stake in Royal Gold during the second quarter valued at about $69,325,000. 83.65% of the stock is currently owned by institutional investors and hedge funds.

Royal Gold Company Profile

Royal Gold, Inc is a precious metals streaming and royalty company headquartered in Denver, Colorado. The company provides financing to mining companies in exchange for the right to purchase a portion of the gold, silver, copper, or other metals produced from their mines, typically at predetermined prices. It also holds royalty interests that entitle it to a percentage of revenue or production from mining operations without directly operating the mines.

Royal Gold's business is focused on acquiring and managing a diversified portfolio of streaming and royalty interests.

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