BlackRock Inc. Invests $2.18 Billion in Royal Gold, Inc. $RGLD

Key Points

• BlackRock acquired 10.91 million Royal Gold shares worth approximately $2.18 billion, giving it a 12.86% stake. Institutional investors collectively own 83.65% of the company.
• Royal Gold exceeded quarterly expectations, reporting $2.56 in EPS and $468.98 million in revenue, with revenue rising 114.9% year over year.
• The company declared a quarterly dividend of $0.475 per share, or $1.90 annually, representing a 0.8% yield. Analysts maintain a mixed outlook, with an average “Hold” rating and a $285.10 price target.

BlackRock Inc. bought a new position in shares of Royal Gold, Inc. (NASDAQ:RGLD - Free Report) TSE: RGL in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 10,910,603 shares of the basic materials company's stock, valued at approximately $2,177,865,000. BlackRock Inc. owned approximately 12.86% of Royal Gold at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Royal Gold by 25.0% during the 4th quarter. Vanguard Group Inc. now owns 8,398,944 shares of the basic materials company's stock valued at $1,867,001,000 after buying an additional 1,681,577 shares in the last quarter. Capital International Investors purchased a new position in shares of Royal Gold in the fourth quarter worth $332,026,000. Van ECK Associates Corp lifted its holdings in shares of Royal Gold by 18.1% in the fourth quarter. Van ECK Associates Corp now owns 5,900,432 shares of the basic materials company's stock worth $1,311,607,000 after buying an additional 905,488 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in shares of Royal Gold by 89.1% during the fourth 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 during the last quarter. Finally, Nuveen LLC boosted its position in shares of Royal Gold by 457.5% during the fourth quarter. Nuveen LLC now owns 925,906 shares of the basic materials company's stock worth $205,820,000 after acquiring an additional 759,810 shares during the last quarter. Institutional investors own 83.65% of the company's stock.

Insider Activity

In related news, SVP Randy Shefman sold 500 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $215.85, for a total value of $107,925.00. Following the completion of the transaction, the senior vice president owned 8,582 shares of the company's stock, valued at approximately $1,852,424.70. This trade represents a 5.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.35% of the company's stock.

Royal Gold Trading Up 7.7%

RGLD stock opened at $248.14 on Thursday. The firm has a fifty day moving average price of $208.19 and a 200 day moving average price of $236.52. Royal Gold, Inc. has a fifty-two week low of $167.28 and a fifty-two week high of $306.25. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.68 and a current ratio of 2.92. The firm has a market cap of $21.02 billion, a PE ratio of 27.09, a price-to-earnings-growth ratio of 1.73 and a beta of 0.44.

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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.55 by $0.01. Royal Gold had a net margin of 47.74% and a return on equity of 12.06%. The company had revenue of $468.98 million for the quarter, compared to the consensus estimate of $458.85 million. During the same quarter in the prior year, the firm earned $1.81 earnings per share. Royal Gold's revenue was up 114.9% on a year-over-year basis. Sell-side analysts anticipate that Royal Gold, Inc. will post 10.33 earnings per share for the current fiscal year.

Royal Gold Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, October 2nd will be given a dividend of $0.475 per share. This represents a $1.90 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Friday, October 2nd. Royal Gold's dividend payout ratio is currently 20.74%.

Wall Street Analysts Forecast Growth

RGLD has been the topic of a number of research reports. Scotiabank reiterated a "sector perform" rating and issued a $310.00 price target on shares of Royal Gold in a report on Tuesday, July 14th. Jefferies Financial Group dropped their price objective on shares of Royal Gold from $318.00 to $311.00 and set a "buy" rating for the company in a report on Monday, July 6th. Zacks Research lowered Royal Gold from a "hold" rating to a "strong sell" rating in a research report on Friday, July 31st. UBS Group lifted their target price on Royal Gold from $280.00 to $285.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Finally, Royal Bank Of Canada decreased their target price on Royal Gold from $310.00 to $305.00 and set an "outperform" rating on the stock in a research report on Thursday, July 9th. Seven analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $285.10.

Royal Gold Company Profile

Royal Gold, Inc, headquartered in Denver, Colorado, is a leading precious metals streaming and royalty company. Through its business model, Royal Gold provides upfront financing to mining operators in exchange for the right to purchase a percentage of future metal production at predetermined prices. This structure allows the company to participate in production upside while minimizing exposure to the operating and capital-intensive aspects of mine ownership.

The company's portfolio encompasses interests in over 200 streams and royalties on projects across North America, South America, Europe, Africa and Australia.

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