Vanguard Group Inc. Buys 1,681,577 Shares of Royal Gold, Inc. $RGLD

Key Points

• Vanguard increased its stake in Royal Gold by 25% in Q4, buying 1,681,577 shares to hold 8,398,944 shares (9.95% of the company) valued at about $1.867 billion.
• Royal Gold missed quarterly expectations with EPS of $1.92 versus $2.68 expected and revenue of $310.8M versus $425.5M, though revenue was up 85.2% year-over-year; the stock traded down and was at $231.02 on the report day.
• Analysts have a consensus rating of "Moderate Buy" with an average target of $273.64 (individual targets range ~ $325–$340), and institutional investors own about 83.65% of the shares.

Vanguard Group Inc. grew its stake in Royal Gold, Inc. (NASDAQ:RGLD - Free Report) TSE: RGL by 25.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 8,398,944 shares of the basic materials company's stock after acquiring an additional 1,681,577 shares during the quarter. Vanguard Group Inc. owned 9.95% of Royal Gold worth $1,867,001,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in the stock. Capital World Investors boosted its holdings in Royal Gold by 1.0% in the third quarter. Capital World Investors now owns 9,055,075 shares of the basic materials company's stock worth $1,816,267,000 after acquiring an additional 93,282 shares in the last quarter. Van ECK Associates Corp boosted its holdings in Royal Gold by 104.1% in the third quarter. Van ECK Associates Corp now owns 4,994,944 shares of the basic materials company's stock worth $1,001,885,000 after acquiring an additional 2,547,076 shares in the last quarter. State Street Corp boosted its holdings in Royal Gold by 5.4% in the third quarter. State Street Corp now owns 3,321,868 shares of the basic materials company's stock worth $666,300,000 after acquiring an additional 170,430 shares in the last quarter. Northern Trust Corp boosted its holdings in Royal Gold by 0.7% in the third quarter. Northern Trust Corp now owns 1,030,501 shares of the basic materials company's stock worth $206,698,000 after acquiring an additional 6,710 shares in the last quarter. Finally, Invesco Ltd. boosted its holdings in Royal Gold by 8.0% in the third quarter. Invesco Ltd. now owns 1,002,789 shares of the basic materials company's stock worth $201,139,000 after acquiring an additional 74,457 shares in the last quarter. 83.65% of the stock is owned by institutional investors.

Analyst Ratings Changes

RGLD has been the topic of several 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 report on Friday, April 17th. Scotiabank downgraded Royal Gold from a "sector outperform" rating to a "sector perform" rating and set a $335.00 target price on the stock. in a report on Monday, January 26th. UBS Group set a $325.00 price target on Royal Gold and gave the company a "buy" rating in a report on Wednesday, April 15th. Zacks Research downgraded Royal Gold from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 17th. Finally, Canadian Imperial Bank of Commerce reaffirmed a "neutral" rating and set a $330.00 price target on shares of Royal Gold in a report on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $273.64.

Royal Gold Trading Down 2.5%

Shares of NASDAQ:RGLD opened at $231.02 on Thursday. The company has a market cap of $19.60 billion, a P/E ratio of 33.92, a PEG ratio of 1.46 and a beta of 0.55. The company has a debt-to-equity ratio of 0.12, a current ratio of 3.12 and a quick ratio of 2.91. Royal Gold, Inc. has a 1 year low of $150.75 and a 1 year high of $306.25. The stock's fifty day moving average price is $261.42 and its 200-day moving average price is $237.33.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL last announced its quarterly earnings results on Wednesday, February 18th. The basic materials company reported $1.92 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.68 by ($0.76). The business had revenue of $310.83 million for the quarter, compared to the consensus estimate of $425.47 million. Royal Gold had a net margin of 45.26% and a return on equity of 11.89%. The company's revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.63 earnings per share. Sell-side analysts expect that Royal Gold, Inc. will post 12.27 earnings per share for the current year.

Royal Gold Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 16th. Stockholders of record on Thursday, April 2nd were issued a dividend of $0.475 per share. This represents a $1.90 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Thursday, April 2nd. Royal Gold's dividend payout ratio is presently 27.90%.

Insider Activity

In related news, Director William M. Hayes sold 4,173 shares of the company's stock in a transaction on Friday, February 20th. The stock was sold at an average price of $277.07, for a total transaction of $1,156,213.11. Following the completion of the sale, the director owned 6,129 shares in the company, valued at approximately $1,698,162.03. This represents a 40.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark Isto sold 2,000 shares of the company's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $274.83, for a total value of $549,660.00. Following the sale, 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 position. The SEC filing for this sale provides additional information. Insiders have sold a total of 7,573 shares of company stock valued at $2,127,091 over the last ninety days. 0.35% of the stock is currently owned by corporate insiders.

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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