Lundin Gold (TSE:LUG) Hits New 12-Month High - Should You Buy?

Key Points

• Lundin Gold shares reached a new 52-week high of C$97.67 during trading, indicating strong market performance with a closing price of C$96.21.
• The company has increased its quarterly dividend to $0.675, up from $0.21, reflecting a positive move for investors with an annual yield of 2.8%.
• Analysts have shown mixed ratings on the stock, with a majority giving it a Hold rating and an average target price set at C$58.95.

Lundin Gold Inc. (TSE:LUG - Get Free Report) reached a new 52-week high on Monday . The stock traded as high as C$97.67 and last traded at C$96.21, with a volume of 218358 shares traded. The stock had previously closed at C$93.80.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on LUG. TD Securities downgraded Lundin Gold from a "strong-buy" rating to a "hold" rating and increased their target price for the stock from C$65.00 to C$73.00 in a research report on Wednesday, July 16th. National Bank Financial downgraded Lundin Gold from a "strong-buy" rating to a "hold" rating in a report on Monday, June 23rd. Raymond James Financial raised their price objective on Lundin Gold from C$53.00 to C$65.00 in a report on Thursday, August 21st. Veritas downgraded Lundin Gold from a "strong-buy" rating to a "strong sell" rating in a report on Monday, June 9th. Finally, Desjardins downgraded Lundin Gold from a "moderate buy" rating to a "hold" rating and raised their price objective for the stock from C$62.00 to C$70.00 in a report on Thursday, July 17th. Twelve investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Lundin Gold presently has a consensus rating of "Reduce" and an average target price of C$58.95.

Lundin Gold Stock Down 4.4%

The firm has a market cap of C$21.27 billion, a price-to-earnings ratio of 34.70 and a beta of 1.15. The business has a 50 day moving average price of C$76.09 and a 200-day moving average price of C$63.15.

Lundin Gold Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Thursday, September 25th will be paid a $0.675 dividend. This represents a $2.70 dividend on an annualized basis and a dividend yield of 3.1%. This is an increase from Lundin Gold's previous quarterly dividend of $0.21. The ex-dividend date is Wednesday, September 10th. Lundin Gold's payout ratio is 45.28%.

Insider Buying and Selling

In other Lundin Gold news, insider Sheila Margaret Colman sold 14,600 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of C$81.49, for a total transaction of C$1,189,754.00. Following the completion of the sale, the insider owned 37,068 shares in the company, valued at C$3,020,671.32. This trade represents a 28.26% decrease in their position. Also, insider Chester See sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of C$83.30, for a total value of C$1,666,000.00. Following the sale, the insider owned 132,571 shares of the company's stock, valued at approximately C$11,043,164.30. This trade represents a 13.11% decrease in their position. In the last 90 days, insiders have sold 36,000 shares of company stock valued at $2,960,824. 58.72% of the stock is owned by insiders.

About Lundin Gold

Lundin Gold Inc is a Canada based company focused on its Fruta del Norte gold operation and developing its portfolio of mineral concessions in Ecuador. The Fruta del Norte deposit is located within a 150 km long copper-gold metallogenic sub-province located in the Cordillera del Condor region in southeastern Ecuador.