Novagold Resources (NYSEAMERICAN:NG) Shares Gap Up - Here's Why

Key Points

• Novagold Resources shares gapped up before trading, opening at $5.95 after closing at $5.63 and later trading around $6.01, an intraday gain of about 8.2%.
• Analysts have remained generally positive on the stock, with Scotiabank upgrading it to strong-buy and MarketBeat data showing an average Buy rating and a $13.22 target price.
• The company remains focused on advancing its Donlin Gold project in Alaska, a 50/50 joint venture with Barrick Gold, while institutional ownership in the stock is high at 57.56%.

Novagold Resources Inc. (NYSEAMERICAN:NG - Get Free Report) TSE: NG's stock price gapped up prior to trading on Wednesday . The stock had previously closed at $5.63, but opened at $5.95. Novagold Resources shares last traded at $6.0120, with a volume of 1,176,397 shares changing hands.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Scotiabank upgraded shares of Novagold Resources to a "strong-buy" rating in a report on Wednesday, May 6th. Morgan Stanley cut their price objective on Novagold Resources from $13.80 to $13.60 and set an "overweight" rating on the stock in a research report on Wednesday, July 8th. Zacks Research upgraded Novagold Resources from a "strong sell" rating to a "hold" rating in a report on Monday, March 30th. Finally, Canaccord Genuity Group began coverage on Novagold Resources in a research report on Friday, March 27th. They issued a "speculative buy" rating and a $13.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Novagold Resources presently has an average rating of "Buy" and an average target price of $13.22.

Novagold Resources Stock Up 8.2%

The company has a debt-to-equity ratio of 0.41, a quick ratio of 112.82 and a current ratio of 112.82. The stock's 50-day moving average price is $7.12 and its two-hundred day moving average price is $8.95. The stock has a market capitalization of $2.67 billion, a PE ratio of -35.96 and a beta of 0.84.

Hedge Funds Weigh In On Novagold Resources

Large investors have recently made changes to their positions in the business. Torren Management LLC purchased a new stake in shares of Novagold Resources in the 4th quarter worth approximately $27,000. Sunbelt Securities Inc. raised its stake in Novagold Resources by 34,166.7% during the first quarter. Sunbelt Securities Inc. now owns 3,084 shares of the mining company's stock valued at $28,000 after buying an additional 3,075 shares during the last quarter. Harbor Investment Advisory LLC purchased a new position in Novagold Resources during the second quarter valued at $33,000. Leonteq Securities AG bought a new stake in Novagold Resources in the fourth quarter worth $38,000. Finally, Cubist Systematic Strategies LLC bought a new stake in Novagold Resources in the first 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 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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