Novagold Resources (NYSEAMERICAN:NG) Shares Gap Down - What's Next?

Key Points

• Shares gapped down, opening at $8.68 after a prior close of $9.36 and last trading around $8.98 on volume of about 301,221, signaling an early sell-off.
• Analysts remain broadly positive with seven Buy ratings and one Hold, an average target of $13.13, and recent actions including B. Riley raising its target to $13 while RBC trimmed its target to $14 but kept an Outperform.
• Fundamentals show very high liquidity (current and quick ratios of 23.79), a debt-to-equity of 1.02 and a market cap of $3.89B with a negative P/E (-35.66); an insider bought 4,000 shares, insiders own 2.88%, and institutions own about 57.6%.

Novagold Resources Inc. (NYSEAMERICAN:NG - Get Free Report) TSE: NG shares gapped down before the market opened on Thursday . The stock had previously closed at $9.36, but opened at $8.68. Novagold Resources shares last traded at $8.9780, with a volume of 301,221 shares traded.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Zacks Research raised shares of Novagold Resources from a "strong sell" rating to a "hold" rating in a research note on Monday. B. Riley Financial boosted their price objective on shares of Novagold Resources from $11.00 to $13.00 and gave the stock a "buy" rating in a research note on Tuesday, January 27th. 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 price objective for the company. Scotiabank started coverage on Novagold Resources in a research report on Friday, February 6th. They set a "sector outperform" rating for the company. Finally, Royal Bank Of Canada cut their target price on Novagold Resources from $18.00 to $14.00 and set an "outperform" rating on the stock in a report on Thursday, March 19th. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $13.13.

Novagold Resources Price Performance

The company has a current ratio of 23.79, a quick ratio of 23.79 and a debt-to-equity ratio of 1.02. The business's 50-day simple moving average is $10.35 and its two-hundred day simple moving average is $9.60. The firm has a market cap of $3.89 billion, a price-to-earnings ratio of -35.66 and a beta of 0.90.

Insider Transactions at Novagold Resources

In other news, Director Dawn Patricia Whittaker purchased 4,000 shares of the business's stock in a transaction on Wednesday, February 4th. The shares were acquired at an average price of $9.36 per share, with a total value of $37,440.00. Following the completion of the transaction, the director owned 4,000 shares of the company's stock, valued at $37,440. The trade was a ∞ increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.88% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Torren Management LLC bought a new stake in shares of Novagold Resources during the 4th quarter valued at about $27,000. Leonteq Securities AG acquired a new position in Novagold Resources in the fourth quarter valued at approximately $38,000. Hantz Financial Services Inc. acquired a new position in Novagold Resources in the third quarter valued at approximately $40,000. Shepherd Financial Partners LLC bought a new position in shares of Novagold Resources during the 2nd quarter worth approximately $41,000. Finally, Quadrature Capital Ltd bought a new position in shares of Novagold Resources during the 2nd quarter worth approximately $44,000. 57.56% of the stock is owned by institutional investors and hedge funds.

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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