Lundin Gold (TSE:LUG) Shares Pass Below 50-Day Moving Average - Should You Sell?

Key Points

• Lundin Gold’s shares fell below their 50-day moving average, trading as low as C$75.50 and last changing hands at C$76.02, well under the C$83.07 average.
• Analyst sentiment remains mixed but constructive: ATB Cormark upgraded the stock to outperform with a C$130 target, while Jefferies trimmed its target to C$88; the consensus rating is still Moderate Buy with an average target of C$99.67.
• The company reported strong recent fundamentals and a sizable dividend, including Q1 EPS of C$1.57 and revenue of C$788.83 million, plus a quarterly dividend of $0.91 per share yielding about 4.8% annually.

Lundin Gold Inc. (TSE:LUG - Get Free Report)'s stock price passed below its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of C$83.07 and traded as low as C$75.50. Lundin Gold shares last traded at C$76.02, with a volume of 459,009 shares traded.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. ATB Cormark Capital Markets upgraded Lundin Gold from a "sector perform" rating to an "outperform" rating and set a C$130.00 price objective for the company in a research note on Friday, May 8th. Jefferies Financial Group cut their target price on Lundin Gold from C$90.00 to C$88.00 in a research report on Monday, July 6th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Lundin Gold currently has a consensus rating of "Moderate Buy" and an average price target of C$99.67.

Lundin Gold Price Performance

The firm's 50-day moving average price is C$83.07 and its 200 day moving average price is C$100.84. The firm has a market cap of C$18.38 billion, a P/E ratio of 20.16 and a beta of 1.64.

Lundin Gold (TSE:LUG - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported C$1.57 earnings per share for the quarter. Lundin Gold had a return on equity of 68.29% and a net margin of 45.73%.The firm had revenue of C$788.83 million during the quarter. Analysts forecast that Lundin Gold Inc. will post 2.5603448 earnings per share for the current year.

Lundin Gold Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, June 25th were paid a dividend of $0.91 per share. The ex-dividend date was Wednesday, June 10th. This represents a $3.64 annualized dividend and a yield of 4.8%. Lundin Gold's dividend payout ratio (DPR) is 84.62%.

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world. The Company's board and management team have extensive expertise and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders through operational excellence and growth, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.

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