Van ECK Associates Corp Raises Stock Position in Royal Gold, Inc. $RGLD

Key Points

• Van ECK Associates raised its stake in Royal Gold by 104.1% to 4,994,944 shares — about 7.59% of the company and roughly $1.00 billion in value, making RGLD its 28th-largest holding.
• Royal Gold missed quarterly expectations (EPS $1.92 vs. $2.68 expected; revenue $360.85M vs. $425.47M) despite revenue rising 85.2% year-over-year, and the stock carries an average analyst rating of "Moderate Buy" with a $251.50 price target.
• The company has a market cap of ~$23.9B and a P/E of 41.39, pays a quarterly dividend of $0.475 (annualized $1.90, yield ~0.7%, payout ratio 27.9%), and is heavily institutionally owned (~83.65%) with recent insider sales reported.

Van ECK Associates Corp raised its stake in shares of Royal Gold, Inc. (NASDAQ:RGLD - Free Report) TSE: RGL by 104.1% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 4,994,944 shares of the basic materials company's stock after buying an additional 2,547,076 shares during the period. Royal Gold comprises approximately 0.9% of Van ECK Associates Corp's holdings, making the stock its 28th largest position. Van ECK Associates Corp owned approximately 7.59% of Royal Gold worth $1,001,885,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Encompass More Asset Management grew its position in Royal Gold by 4.2% during the third quarter. Encompass More Asset Management now owns 1,283 shares of the basic materials company's stock valued at $257,000 after buying an additional 52 shares during the period. Sowell Financial Services LLC grew its position in shares of Royal Gold by 4.0% during the 3rd quarter. Sowell Financial Services LLC now owns 1,368 shares of the basic materials company's stock valued at $274,000 after acquiring an additional 52 shares during the period. MassMutual Private Wealth & Trust FSB increased its stake in shares of Royal Gold by 33.9% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 221 shares of the basic materials company's stock worth $44,000 after purchasing an additional 56 shares in the last quarter. Compound Planning Inc. raised its holdings in Royal Gold by 4.4% in the 3rd quarter. Compound Planning Inc. now owns 1,315 shares of the basic materials company's stock worth $264,000 after purchasing an additional 56 shares during the period. Finally, Avidian Wealth Enterprises LLC lifted its position in Royal Gold by 2.3% during the third quarter. Avidian Wealth Enterprises LLC now owns 2,635 shares of the basic materials company's stock valued at $529,000 after purchasing an additional 59 shares in the last quarter. 83.65% of the stock is currently owned by hedge funds and other institutional investors.

Royal Gold Price Performance

Royal Gold stock 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 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 200 day moving average is $221.13. The company has a market cap of $23.90 billion, a price-to-earnings ratio of 41.39, a PEG ratio of 1.69 and a beta of 0.47.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL last issued its quarterly earnings data on Wednesday, February 18th. The basic materials company reported $1.92 EPS for the quarter, missing analysts' consensus estimates of $2.68 by ($0.76). The business had revenue of $360.85 million during the quarter, compared to analysts' expectations 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 in the previous year, the business earned $1.63 earnings per share. Sell-side analysts forecast that Royal Gold, Inc. will post 6.2 EPS for the current fiscal year.

Royal Gold Dividend Announcement

The business also recently disclosed 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. This represents a $1.90 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, April 2nd. Royal Gold's payout ratio is presently 27.90%.

Insider Activity at Royal Gold

In related news, SVP Daniel Breeze sold 1,400 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $300.87, for a total transaction of $421,218.00. Following the sale, the senior vice president owned 20,140 shares in the company, valued at approximately $6,059,521.80. This represents a 6.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director William M. Hayes sold 4,173 shares of the firm's 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 completion of the sale, the director owned 6,129 shares of the company's stock, valued at approximately $1,698,162.03. This represents a 40.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.49% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on RGLD shares. Weiss Ratings restated a "buy (b)" rating on shares of Royal Gold in a research note on Thursday, January 22nd. Zacks Research lowered Royal Gold from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 17th. Scotiabank lowered Royal Gold from a "sector outperform" rating to a "sector perform" rating and set a $335.00 price objective for the company. in a research note on Monday, January 26th. Canadian Imperial Bank of Commerce restated a "neutral" rating and issued a $330.00 price target on shares of Royal Gold in a research note on Wednesday, February 4th. Finally, Jefferies Financial Group restated a "buy" rating and set a $270.00 target price on shares of Royal Gold in a research report on Sunday, December 7th. Seven equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Royal Gold presently has an average rating of "Moderate Buy" and an average price target of $251.50.

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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