Capital World Investors Grows Position in Royal Gold, Inc. $RGLD

Key Points

• Capital World Investors increased its stake in Royal Gold by 1.0% to 9,055,075 shares, representing about 13.76% ownership worth $1.816 billion, and institutional investors/hedge funds now own roughly 83.65% of the stock.
• Royal Gold missed quarterly expectations, reporting EPS of $1.92 vs. the $2.68 estimate and revenue of $360.85 million vs. $425.47 million, although revenue was up 85.2% year-over-year.
• Insiders sold shares (Director William M. Hayes sold 4,173 shares; SVP Daniel Breeze sold 1,400), leaving insiders with 0.49% ownership, and the company announced a quarterly dividend of $0.475 ($1.90 annual, ~0.7% yield).

Capital World Investors raised its stake in shares of Royal Gold, Inc. (NASDAQ:RGLD - Free Report) TSE: RGL by 1.0% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 9,055,075 shares of the basic materials company's stock after purchasing an additional 93,282 shares during the quarter. Capital World Investors owned about 13.76% of Royal Gold worth $1,816,267,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in RGLD. Capital International Inc. CA raised its stake in Royal Gold by 25.3% in the 3rd quarter. Capital International Inc. CA now owns 20,224 shares of the basic materials company's stock worth $4,057,000 after acquiring an additional 4,085 shares during the last quarter. Bank of Montreal Can increased its holdings in shares of Royal Gold by 24.1% in the third quarter. Bank of Montreal Can now owns 131,737 shares of the basic materials company's stock valued at $26,424,000 after purchasing an additional 25,577 shares during the period. Vestcor Inc raised its stake in shares of Royal Gold by 1,223.3% in the third quarter. Vestcor Inc now owns 19,796 shares of the basic materials company's stock worth $3,971,000 after purchasing an additional 18,300 shares during the last quarter. Fieldview Capital Management LLC lifted its holdings in shares of Royal Gold by 2,962.6% during the third quarter. Fieldview Capital Management LLC now owns 43,367 shares of the basic materials company's stock worth $8,699,000 after purchasing an additional 41,951 shares during the period. Finally, Swiss National Bank boosted its position in Royal Gold by 1.5% in the third quarter. Swiss National Bank now owns 127,600 shares of the basic materials company's stock valued at $25,594,000 after buying an additional 1,900 shares during the last quarter. 83.65% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Royal Gold

In other Royal Gold news, Director William M. Hayes sold 4,173 shares of Royal Gold stock in a transaction on Friday, February 20th. The stock was sold at an average price of $277.07, for a total value of $1,156,213.11. Following the sale, the director owned 6,129 shares in the company, valued at $1,698,162.03. The trade was a 40.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Daniel Breeze sold 1,400 shares of the company's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $300.87, for a total value of $421,218.00. Following the completion of the transaction, the senior vice president directly owned 20,140 shares in the company, valued at approximately $6,059,521.80. This trade represents a 6.50% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.49% of the stock is owned by company insiders.

Analysts Set New Price Targets

RGLD has been the subject of several research reports. Zacks Research cut shares of Royal Gold from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 17th. Weiss Ratings reissued a "buy (b)" rating on shares of Royal Gold in a report on Thursday, January 22nd. Scotiabank lowered shares of Royal Gold from a "sector outperform" rating to a "sector perform" rating and set a $335.00 price target on the stock. in a report on Monday, January 26th. Canadian Imperial Bank of Commerce reaffirmed a "neutral" rating and set a $330.00 price target on shares of Royal Gold in a research report on Wednesday, February 4th. Finally, TD Cowen lifted their price target on Royal Gold from $261.00 to $263.00 and gave the company a "buy" rating in a research report on Tuesday, November 18th. Seven investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $251.50.

Royal Gold Trading Up 0.7%

Shares of RGLD opened at $281.86 on Tuesday. Royal Gold, Inc. has a 52-week low of $150.75 and a 52-week high of $306.25. The stock has a market cap of $23.90 billion, a PE ratio of 41.39, a price-to-earnings-growth ratio of 1.69 and a beta of 0.47. The company has a quick ratio of 2.91, a current ratio of 3.12 and a debt-to-equity ratio of 0.12. The firm's fifty day moving average is $269.91 and its two-hundred day moving average is $221.13.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL last released its quarterly earnings data on Wednesday, February 18th. The basic materials company reported $1.92 earnings per share for the quarter, missing analysts' consensus estimates of $2.68 by ($0.76). The company had revenue of $360.85 million for the quarter, compared to analyst estimates of $425.47 million. Royal Gold had a return on equity of 11.89% and a net margin of 45.26%.The business's quarterly revenue was up 85.2% on a year-over-year basis. During the same period last year, the firm posted $1.63 EPS. Research analysts forecast that Royal Gold, Inc. will post 6.2 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 Thursday, April 16th. Shareholders of record on Thursday, April 2nd will be paid a dividend of $0.475 per share. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $1.90 annualized dividend and a yield of 0.7%. Royal Gold's dividend payout ratio (DPR) is 27.90%.

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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