Hsbc Holdings PLC Makes New Investment in Royal Gold, Inc. $RGLD

Key Points

• HSBC acquired 5,378 Royal Gold shares during the second quarter, valued at approximately $1.07 million. Institutional investors collectively own 83.65% of the company.
• Analyst sentiment is mixed: Royal Gold has an overall “Hold” consensus rating and a $285.10 average price target, with recent upgrades and downgrades ranging from “Buy” to “Strong Sell.”
• Royal Gold reported quarterly EPS of $2.56 and revenue of $468.98 million, with revenue up 114.9% year over year. The company also announced a quarterly dividend of $0.475 per share, representing a 0.7% yield.

Hsbc Holdings PLC acquired a new stake in shares of Royal Gold, Inc. (NASDAQ:RGLD - Free Report) TSE: RGL during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm acquired 5,378 shares of the basic materials company's stock, valued at approximately $1,074,000.

Other large investors also recently modified their holdings of the company. Bank of Nova Scotia increased its stake in Royal Gold by 2.9% in the 1st quarter. Bank of Nova Scotia now owns 1,526 shares of the basic materials company's stock worth $388,000 after buying an additional 43 shares in the last quarter. Apollon Wealth Management LLC lifted its position in shares of Royal Gold by 1.5% in the first quarter. Apollon Wealth Management LLC now owns 2,905 shares of the basic materials company's stock valued at $739,000 after acquiring an additional 44 shares in the last quarter. Hilltop Holdings Inc. boosted its stake in shares of Royal Gold by 0.6% in the first quarter. Hilltop Holdings Inc. now owns 7,432 shares of the basic materials company's stock worth $1,891,000 after acquiring an additional 46 shares during the period. Compound Planning Inc. boosted its stake in shares of Royal Gold by 3.3% in the first quarter. Compound Planning Inc. now owns 1,493 shares of the basic materials company's stock worth $380,000 after acquiring an additional 47 shares during the period. Finally, Strs Ohio grew its position in shares of Royal Gold by 0.6% during the first quarter. Strs Ohio now owns 8,611 shares of the basic materials company's stock worth $2,191,000 after purchasing an additional 48 shares in the last quarter. Hedge funds and other institutional investors own 83.65% of the company's stock.

Wall Street Analyst Weigh In

RGLD has been the topic of several recent analyst reports. Scotiabank reissued a "sector perform" rating and set a $310.00 target price on shares of Royal Gold in a research note on Tuesday, July 14th. Weiss Ratings lowered shares of Royal Gold from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 4th. UBS Group lifted their price objective on shares of Royal Gold from $280.00 to $285.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Royal Bank Of Canada lowered their target price on shares of Royal Gold from $310.00 to $305.00 and set an "outperform" rating on the stock in a report on Thursday, July 9th. Finally, Zacks Research cut shares of Royal Gold from a "hold" rating to a "strong sell" rating in a research note on Friday, July 31st. Seven investment 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's stock. According to MarketBeat, Royal Gold presently has an average rating of "Hold" and a consensus price target of $285.10.

Insider Activity at Royal Gold

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 transaction, the senior vice president owned 8,082 shares of the company's stock, valued at approximately $2,123,949.60. The trade was a 5.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 0.35% of the company's stock.

Royal Gold Stock Down 0.5%

Shares of NASDAQ:RGLD opened at $261.47 on Tuesday. The company has a current ratio of 2.92, a quick ratio of 2.68 and a debt-to-equity ratio of 0.05. Royal Gold, Inc. has a 12 month low of $168.88 and a 12 month high of $306.25. The company has a 50-day moving average price of $215.99 and a 200 day moving average price of $236.28. The company has a market cap of $22.15 billion, a price-to-earnings ratio of 28.54, a PEG ratio of 1.98 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 EPS for the quarter, topping the consensus estimate of $2.55 by $0.01. Royal Gold had a return on equity of 12.06% and a net margin of 47.74%.The company had revenue of $468.98 million during the quarter, compared to analyst estimates of $458.85 million. During the same quarter last year, the business posted $1.81 earnings per share. The firm's revenue was up 114.9% on a year-over-year basis. As a group, equities research analysts predict that Royal Gold, Inc. will post 10.26 earnings per share for the current year.

Royal Gold Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, October 2nd will be issued a $0.475 dividend. The ex-dividend date is Friday, October 2nd. This represents a $1.90 dividend on an annualized basis and a dividend yield of 0.7%. Royal Gold's payout ratio is 20.74%.

Royal Gold 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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