Novagold Resources (NYSEAMERICAN:NG) Sets New 12-Month High - Time to Buy?

Key Points

• Novagold Resources Inc. reached a new 52-week high of $7.33, indicating strong trading performance with a significant volume of over 3.27 million shares traded.
• Analysts have shown a positive outlook, with Royal Bank of Canada upgrading the stock to "outperform" and setting a target price of $7.00, reflecting a consensus average rating of "Buy."
• Insider trading activity also supports investor confidence, as Director Hume D. Kyle significantly increased his stake by acquiring 10,000 shares at $4.10 each.

Novagold Resources Inc. (NYSEAMERICAN:NG - Get Free Report) TSE: NG shares reached a new 52-week high on Tuesday . The stock traded as high as $7.33 and last traded at $7.30, with a volume of 3274331 shares trading hands. The stock had previously closed at $6.92.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on NG shares. Citigroup assumed coverage on Novagold Resources in a research report on Wednesday, July 16th. They issued a "buy" rating and a $7.00 price objective for the company. Royal Bank Of Canada upgraded Novagold Resources from a "sector perform" rating to an "outperform" rating and lifted their price objective for the stock from $5.00 to $7.00 in a research report on Wednesday, June 4th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $7.00.

Novagold Resources Stock Performance

The stock has a fifty day simple moving average of $6.05 and a two-hundred day simple moving average of $4.47. The stock has a market capitalization of $3.06 billion, a price-to-earnings ratio of -31.37 and a beta of 0.66. The company has a debt-to-equity ratio of 0.96, a quick ratio of 76.72 and a current ratio of 76.72.

Insider Activity at Novagold Resources

In other news, Director Hume D. Kyle acquired 10,000 shares of the firm's stock in a transaction dated Monday, June 30th. The stock was purchased at an average price of $4.10 per share, for a total transaction of $41,000.00. Following the completion of the acquisition, the director directly owned 22,348 shares in the company, valued at $91,626.80. The trade was a 80.98% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 2.88% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cary Street Partners Financial LLC purchased a new stake in shares of Novagold Resources during the 1st quarter worth approximately $29,000. Squarepoint Ops LLC purchased a new position in Novagold Resources in the fourth quarter worth $35,000. Dauntless Investment Group LLC bought a new position in shares of Novagold Resources during the 1st quarter valued at $39,000. Shepherd Financial Partners LLC purchased a new position in Novagold Resources in the 2nd quarter worth $41,000. Finally, Quadrature Capital Ltd bought a new stake in Novagold Resources in the second quarter worth $44,000. 57.56% of the stock is currently owned by hedge funds and other institutional investors.

About Novagold Resources

NovaGold Resources Inc explores for and develops gold mineral properties in the United States. Its principal asset is the Donlin Gold project consisting of 493 mining claims covering an area of approximately 29,008 hectares located in the Kuskokwim region of southwestern Alaska. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc in March 1987.