Eldorado Gold (NYSE:EGO) Trading Up 10.9% - What's Next?

Key Points

• Eldorado Gold shares surged 10.9% to $35.30 in mid-day trading, although trading volume was 73% below the stock’s average session volume.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $41.83; recent firms have lowered targets, while Zacks Research downgraded the stock to “Strong Sell.”
• The company beat quarterly earnings expectations with $0.54 per share versus $0.52 expected, but revenue of $487.5 million fell short of the $529.9 million consensus estimate. Eldorado Gold also declared a quarterly dividend of $0.075 per share, representing a 0.8% annual yield.

Eldorado Gold Corporation (NYSE:EGO - Get Free Report) TSE: ELD shares rose 10.9% during mid-day trading on Wednesday . The company traded as high as $35.51 and last traded at $35.30. 781,055 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 2,844,450 shares. The stock had previously closed at $31.82.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. TD Securities lowered their price target on Eldorado Gold from $45.00 to $40.00 and set a "hold" rating on the stock in a report on Tuesday, April 14th. Scotiabank decreased their price objective on Eldorado Gold from $55.00 to $47.00 and set a "sector outperform" rating for the company in a research report on Tuesday, July 14th. Bank of America raised their price objective on Eldorado Gold from $31.00 to $33.00 and gave the stock an "underperform" rating in a research report on Thursday, July 9th. Weiss Ratings downgraded Eldorado Gold from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, June 11th. Finally, Zacks Research lowered shares of Eldorado Gold from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Eldorado Gold presently has a consensus rating of "Hold" and an average price target of $41.83.

Eldorado Gold Stock Up 14.4%

The business's 50 day simple moving average is $31.36 and its 200-day simple moving average is $35.66. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.85 and a current ratio of 1.31. The company has a market cap of $9.51 billion, a price-to-earnings ratio of 12.88, a price-to-earnings-growth ratio of 0.22 and a beta of 0.63.

Eldorado Gold (NYSE:EGO - Get Free Report) TSE: ELD last posted its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.54 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.02. The business had revenue of $487.50 million for the quarter, compared to the consensus estimate of $529.92 million. Eldorado Gold had a net margin of 29.83% and a return on equity of 10.91%. Sell-side analysts expect that Eldorado Gold Corporation will post 3.41 earnings per share for the current year.

Eldorado Gold Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 1st. Eldorado Gold's dividend payout ratio is presently 10.64%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Headlands Technologies LLC acquired a new position in Eldorado Gold during the second quarter worth $32,000. Smartleaf Asset Management LLC acquired a new stake in shares of Eldorado Gold in the fourth quarter worth about $33,000. Flagship Harbor Advisors LLC acquired a new stake in shares of Eldorado Gold in the fourth quarter worth about $36,000. Wexford Capital LP bought a new stake in shares of Eldorado Gold during the 3rd quarter worth about $37,000. Finally, State of Wyoming bought a new stake in shares of Eldorado Gold during the 2nd quarter worth about $58,000. Institutional investors own 69.58% of the company's stock.

About Eldorado Gold

Eldorado Gold Corporation is a Canada‐based gold producer engaged in the acquisition, exploration, development and operation of mineral properties. The company's core focus is on gold, silver and select base metals, with an emphasis on advancing projects through feasibility and into production. Eldorado Gold maintains a diversified portfolio of both producing mines and advanced‐stage development projects.

Operationally, Eldorado Gold manages multiple gold mining operations across Turkey, Canada and Greece.

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