Lundin Gold (TSE:LUG) Trading 6.7% Higher - Here's Why

Key Points

• Lundin Gold Inc. shares rose by 6.7% during trading, reaching a last traded price of C$79.01, despite a 79% decline in trading volume from the average session.
• Recent analyst ratings show a trend towards downgrades, with multiple firms shifting their ratings to "hold" and adjusting their target prices upwards, reflecting cautious outlooks.
• The company has recently cut its dividend, with a current payout ratio of 60.06%, reflecting a 1.0% yield, and insiders have sold over $4 million worth of shares in the last three months.

Lundin Gold Inc. (TSE:LUG - Get Free Report) was up 6.7% on Friday . The stock traded as high as C$79.16 and last traded at C$79.01. Approximately 143,567 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 671,340 shares. The stock had previously closed at C$74.08.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Desjardins downgraded Lundin Gold from a "moderate buy" rating to a "hold" rating and lifted their price target for the company from C$62.00 to C$70.00 in a research note on Thursday, July 17th. TD Securities downgraded Lundin Gold from a "strong-buy" rating to a "hold" rating and lifted their price target for the company from C$65.00 to C$73.00 in a research note on Wednesday, July 16th. Cormark downgraded Lundin Gold from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, April 22nd. National Bankshares downgraded Lundin Gold from an "outperform" rating to a "sector perform" rating and lifted their price target for the company from C$67.75 to C$89.00 in a research note on Tuesday, June 24th. Finally, Veritas downgraded Lundin Gold from a "strong-buy" rating to a "strong sell" rating in a research note on Monday, June 9th. One equities research analyst has rated the stock with a sell rating and twelve have issued a hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of C$54.18.

Lundin Gold Stock Performance

The business has a 50 day moving average price of C$69.44 and a two-hundred day moving average price of C$55.21. The stock has a market cap of C$13.47 billion, a PE ratio of 44.29 and a beta of 1.23.

Lundin Gold Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 25th. Stockholders of record on Wednesday, June 25th were paid a $0.2075 dividend. This represents a $0.83 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Tuesday, June 10th. Lundin Gold's payout ratio is presently 60.06%.

Insider Transactions at Lundin Gold

In related news, Senior Officer Sheila Margaret Colman sold 1,400 shares of Lundin Gold stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of C$75.05, for a total value of C$105,070.00. Also, Senior Officer Terrence Smith sold 40,656 shares of Lundin Gold stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of C$64.06, for a total transaction of C$2,604,423.36. Insiders have sold 65,056 shares of company stock worth $4,166,044 in the last 90 days. Insiders own 58.72% of the company's stock.

Lundin Gold Company Profile

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.