Novagold Resources (NYSEAMERICAN:NG) Reaches New 1-Year Low - What's Next?

Key Points

• Novagold Resources hit a new 52-week low on Friday, trading as low as $5.07 before last changing hands at $5.1350, down from the prior close of $5.33.
• Despite the weak share price, Wall Street analysts remain generally positive: the stock has an average “Buy” rating and an average target price of $13.22, though some firms have recently trimmed targets or downgraded their views.
• The company’s stock is heavily owned by institutional investors, with hedge funds and other institutions holding 57.56% of shares, while Novagold continues to advance its Donlin Gold project in Alaska through a 50/50 joint venture with Barrick Gold.

Shares of Novagold Resources Inc. (NYSEAMERICAN:NG - Get Free Report) TSE: NG hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $5.07 and last traded at $5.1350, with a volume of 390232 shares changing hands. The stock had previously closed at $5.33.

Wall Street Analysts Forecast Growth

Several analysts have commented on NG shares. Zacks Research raised Novagold Resources from a "strong sell" rating to a "hold" rating in a research note on Monday, March 30th. Royal Bank Of Canada lowered their target price on Novagold Resources from $18.00 to $14.00 and set an "outperform" rating on the stock in a research note on Thursday, March 19th. Canaccord Genuity Group started coverage on Novagold Resources in a report on Friday, March 27th. They issued a "speculative buy" rating and a $13.00 target price on the stock. Scotiabank upgraded Novagold Resources to a "strong-buy" rating in a research note on Wednesday, May 6th. Finally, Morgan Stanley decreased their price target on Novagold Resources from $13.80 to $13.60 and set an "overweight" rating for the company in a report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Buy" and an average target price of $13.22.

Novagold Resources Stock Down 2.9%

The company has a quick ratio of 112.82, a current ratio of 112.82 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $2.27 billion, a PE ratio of -30.32 and a beta of 0.84. The firm's fifty day moving average is $7.34 and its 200-day moving average is $9.03.

Institutional Investors Weigh In On Novagold Resources

Several institutional investors have recently made changes to their positions in the stock. Electrum Group LLC purchased a new position in shares of Novagold Resources in the 4th quarter valued at about $865,854,000. Vanguard Group Inc. lifted its stake in shares of Novagold Resources by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 14,760,990 shares of the mining company's stock valued at $137,647,000 after purchasing an additional 173,474 shares during the period. UBS Group AG boosted its holdings in Novagold Resources by 21.9% during the third quarter. UBS Group AG now owns 13,617,880 shares of the mining company's stock worth $119,837,000 after buying an additional 2,443,511 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in Novagold Resources by 32,405.9% during the first quarter. Principal Financial Group Inc. now owns 5,722,006 shares of the mining company's stock worth $51,380,000 after buying an additional 5,704,403 shares in the last quarter. Finally, Teacher Retirement System of Texas grew its position in Novagold Resources by 12.7% during the fourth quarter. Teacher Retirement System of Texas now owns 5,376,816 shares of the mining company's stock worth $50,112,000 after buying an additional 606,000 shares during the period. 57.56% of the stock is currently owned by hedge funds and other institutional investors.

About Novagold Resources

Novagold Resources Inc is a mineral exploration and development company headquartered in Vancouver, British Columbia. The firm is focused on advancing large-scale precious metals projects through disciplined project management, environmental stewardship and community engagement. Novagold maintains a lean corporate structure while leveraging partnerships and industry expertise to advance its projects toward production.

The company's flagship asset is the Donlin Gold project in Alaska, a 50/50 joint venture with Barrick Gold Corporation.

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