New Gold (NYSE:NGD) Trading Down 7.1% - Should You Sell?

Key Points

• New Gold Inc. shares dropped 7.1% on Thursday, trading as low as $6.73 after previously closing at $7.25.
• Analysts' ratings for New Gold vary; one Strong Buy, three Buy, and one Hold, with a consensus target price of $4.56.
• Institutional ownership of New Gold is at 42.82%, with several funds significantly increasing their stakes in the company during recent quarters.

New Gold Inc. (NYSE:NGD - Get Free Report) dropped 7.1% on Thursday . The stock traded as low as $6.73 and last traded at $6.74. Approximately 15,258,020 shares changed hands during trading, a decline of 21% from the average daily volume of 19,236,283 shares. The stock had previously closed at $7.25.

Analysts Set New Price Targets

Several equities analysts have issued reports on NGD shares. National Bankshares reissued an "outperform" rating on shares of New Gold in a research note on Tuesday, September 9th. Raymond James Financial raised shares of New Gold to a "hold" rating and set a $4.00 target price on the stock in a report on Monday, June 30th. Finally, CIBC increased their price target on shares of New Gold from $5.50 to $6.25 and gave the stock an "outperformer" rating in a report on Tuesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, New Gold has a consensus rating of "Buy" and a consensus target price of $4.56.

New Gold Stock Performance

The stock's 50 day moving average price is $6.05 and its two-hundred day moving average price is $4.82. The company has a current ratio of 1.39, a quick ratio of 0.84 and a debt-to-equity ratio of 0.38. The firm has a market capitalization of $5.40 billion, a price-to-earnings ratio of 52.47 and a beta of 0.46.

Institutional Investors Weigh In On New Gold

A number of institutional investors and hedge funds have recently modified their holdings of NGD. Employees Retirement System of Texas purchased a new stake in New Gold during the second quarter worth $32,000. SBI Securities Co. Ltd. raised its stake in shares of New Gold by 1,837.7% during the 2nd quarter. SBI Securities Co. Ltd. now owns 8,933 shares of the company's stock worth $44,000 after buying an additional 8,472 shares during the last quarter. Cary Street Partners Financial LLC purchased a new stake in shares of New Gold in the 1st quarter worth about $37,000. Wealthspire Advisors LLC acquired a new stake in New Gold in the 2nd quarter valued at about $50,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in New Gold by 16,046.6% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 11,787 shares of the company's stock valued at $58,000 after acquiring an additional 11,714 shares during the last quarter. Institutional investors and hedge funds own 42.82% of the company's stock.

New Gold Company Profile

New Gold Inc, an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company's principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.