Capital International Investors Buys New Shares in Royal Gold, Inc. $RGLD

Key Points

• Capital International Investors initiated a new position in Royal Gold, buying 1,493,661 shares worth about $332 million in the fourth quarter. The stake represented 1.77% of the company at the end of the reporting period.
• Royal Gold continues to draw heavy institutional interest, with hedge funds and other investors making moves in the stock and 83.65% of shares now held by institutions and hedge funds.
• The company also reported insider selling and a quarterly dividend: Director Mark Isto and SVP Randy Shefman both sold shares, while Royal Gold declared a $0.475 per-share dividend payable July 16.

Capital International Investors bought a new stake in Royal Gold, Inc. (NASDAQ:RGLD - Free Report) TSE: RGL during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,493,661 shares of the basic materials company's stock, valued at approximately $332,026,000. Capital International Investors owned 1.77% of Royal Gold at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in RGLD. Goldman Sachs Group Inc. increased its position in shares of Royal Gold by 99.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 168,846 shares of the basic materials company's stock valued at $27,608,000 after acquiring an additional 84,206 shares during the period. Focus Partners Wealth grew its position in Royal Gold by 51.5% during the 1st quarter. Focus Partners Wealth now owns 8,465 shares of the basic materials company's stock worth $1,384,000 after purchasing an additional 2,876 shares during the period. Brown Advisory Inc. raised its position in shares of Royal Gold by 28.9% in the second quarter. Brown Advisory Inc. now owns 3,551 shares of the basic materials company's stock worth $631,000 after acquiring an additional 796 shares during the period. Qube Research & Technologies Ltd grew its position in shares of Royal Gold by 43.0% during the 2nd quarter. Qube Research & Technologies Ltd now owns 188,247 shares of the basic materials company's stock valued at $33,478,000 after acquiring an additional 56,621 shares during the period. Finally, NewEdge Advisors LLC grew its position in shares of Royal Gold by 4.6% during the 2nd quarter. NewEdge Advisors LLC now owns 24,551 shares of the basic materials company's stock valued at $4,366,000 after acquiring an additional 1,072 shares during the period. 83.65% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Royal Gold news, Director Mark Isto sold 2,000 shares of the firm's stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $274.83, for a total transaction of $549,660.00. Following the transaction, the director owned 20,043 shares of the company's stock, valued at approximately $5,508,417.69. This trade represents a 9.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Randy Shefman sold 1,000 shares of the firm's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $243.74, for a total value of $243,740.00. Following the transaction, the senior vice president directly owned 9,082 shares in the company, valued at approximately $2,213,646.68. The trade was a 9.92% decrease in their position. The SEC filing for this sale provides additional information. 0.35% of the stock is currently owned by corporate insiders.

Royal Gold Price Performance

NASDAQ:RGLD opened at $206.07 on Monday. Royal Gold, Inc. has a 52 week low of $150.75 and a 52 week high of $306.25. The stock's fifty day moving average is $241.41 and its two-hundred day moving average is $245.12. The company has a quick ratio of 3.26, a current ratio of 3.52 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $17.49 billion, a price-to-earnings ratio of 24.56, a price-to-earnings-growth ratio of 1.53 and a beta of 0.42.

Royal Gold Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 16th. Stockholders of record on Thursday, July 2nd will be given a dividend of $0.475 per share. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.90 dividend on an annualized basis and a dividend yield of 0.9%. Royal Gold's dividend payout ratio is currently 22.65%.

Wall Street Analyst Weigh In

RGLD has been the topic of a number of analyst reports. National Bank Financial dropped their target price on Royal Gold from $350.00 to $340.00 and set an "outperform" rating on the stock in a research report on Friday, April 17th. Zacks Research cut Royal Gold from a "hold" rating to a "strong sell" rating in a report on Tuesday, May 5th. Weiss Ratings restated a "buy (b)" rating on shares of Royal Gold in a report on Tuesday, April 21st. Finally, UBS Group set a $325.00 target price on Royal Gold and gave the stock a "buy" rating in a report on Wednesday, April 15th. Eight equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Royal Gold presently has a consensus rating of "Moderate Buy" and a consensus target price of $273.64.

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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