Novagold Resources (NYSEAMERICAN:NG) Stock Sees Unusually High Call Option Buying

Key Points

• Unusually high options activity: Traders purchased 20,243 Novagold call options, roughly 765% above the typical daily volume of 2,341 contracts.
• Analysts remain broadly positive: The stock has a consensus “Buy” rating and an average price target of $12.42, despite Morgan Stanley lowering its target to $13.60; B. Riley initiated coverage with a “Buy” rating and a $9.00 target.
• Shares remain well below recent highs: Novagold traded at $6.49, compared with a 12-month range of $5.07 to $14.40. Institutional investors and hedge funds own approximately 57.56% of the company.

Novagold Resources Inc. (NYSEAMERICAN:NG - Get Free Report) TSE: NG was the target of unusually large options trading activity on Friday. Traders acquired 20,243 call options on the company. This is an increase of approximately 765% compared to the typical daily volume of 2,341 call options.

Analyst Upgrades and Downgrades

Several brokerages have commented on NG. Morgan Stanley cut their price target on shares of Novagold Resources from $13.80 to $13.60 and set an "overweight" rating for the company in a report on Wednesday, July 8th. B. Riley Financial initiated coverage on shares of Novagold Resources in a research report on Monday, August 3rd. They set a "buy" rating and a $9.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $12.42.

Novagold Resources Price Performance

Shares of NYSEAMERICAN NG traded up $0.07 during midday trading on Friday, hitting $6.49. 2,192,528 shares of the company's stock were exchanged, compared to its average volume of 4,349,834. Novagold Resources has a 12-month low of $5.07 and a 12-month high of $14.40. The company has a current ratio of 112.82, a quick ratio of 112.82 and a debt-to-equity ratio of 0.41. The company has a market cap of $2.85 billion, a price-to-earnings ratio of -38.20 and a beta of 0.95. The business's fifty day moving average price is $7.49 and its two-hundred day moving average price is $7.75.

Novagold Resources (NYSEAMERICAN:NG - Get Free Report) TSE: NG last announced its earnings results on Wednesday, July 22nd. The mining company reported ($0.06) earnings per share for the quarter. As a group, research analysts forecast that Novagold Resources will post -0.13 EPS for the current fiscal year.

Institutional Trading of Novagold Resources

Institutional investors and hedge funds have recently made changes to their positions in the stock. Versant Capital Management Inc increased its stake in Novagold Resources by 44.1% in the third quarter. Versant Capital Management Inc now owns 7,779 shares of the mining company's stock valued at $51,000 after acquiring an additional 2,380 shares during the last quarter. Squarepoint Ops LLC purchased a new stake in Novagold Resources during the second quarter valued at about $676,000. Corient Private Wealth LP purchased a new stake in Novagold Resources during the second quarter valued at about $907,000. Groupe la Francaise lifted its stake in Novagold Resources by 23.1% during the second quarter. Groupe la Francaise now owns 400,000 shares of the mining company's stock worth $2,393,000 after purchasing an additional 75,000 shares during the last quarter. Finally, AlphaGrep UK Ltd purchased a new position in shares of Novagold Resources in the 2nd quarter worth about $66,000. Hedge funds and other institutional investors own 57.56% of the company's stock.

About Novagold Resources

Novagold Resources Inc is a Canada-based precious metals exploration and development company focused on advancing the Donlin Gold project in southwest Alaska. The project is held through Donlin Gold LLC, which is owned equally by Novagold and Barrick Gold Corporation. Donlin Gold is one of the largest undeveloped gold deposits in the world and is located on lands owned by the Calista Corporation and The Kuskokwim Corporation.

Novagold does not currently operate producing mines. Its primary activities include project evaluation, permitting, technical studies, exploration, and community and stakeholder engagement related to Donlin Gold.

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