Eldorado Gold (NYSE:EGO) Shares Gap Down on Disappointing Earnings

Key Points

• Eldorado Gold shares fell sharply, opening at $30.14 versus a prior close of $34.46 and trading about 7.5% lower after the earnings release.
• Quarterly results missed expectations: EPS was $0.49 versus the $0.53 consensus, while revenue of $511.9 million came in well below analysts’ $621.9 million forecast.
• Despite the earnings disappointment, analysts maintain a “Moderate Buy” consensus with an average price target of $46.57; institutional investors own 69.58% of the stock.

Eldorado Gold Corporation (NYSE:EGO - Get Free Report) TSE: ELD's share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $34.46, but opened at $30.14. Eldorado Gold shares last traded at $31.5590, with a volume of 1,431,098 shares.

The basic materials company reported $0.49 EPS for the quarter, missing analysts' consensus estimates of $0.53 by ($0.04). Eldorado Gold had a net margin of 29.83% and a return on equity of 10.91%. The company had revenue of $511.90 million for the quarter, compared to analysts' expectations of $621.90 million.

Analysts Set New Price Targets

A number of analysts have weighed in on EGO shares. Stifel Nicolaus raised shares of Eldorado Gold from a "hold" rating to a "buy" rating in a report on Friday, July 31st. Jefferies Financial Group initiated coverage on shares of Eldorado Gold in a research note on Thursday, August 20th. They issued a "buy" rating and a $50.00 target price for the company. Weiss Ratings downgraded Eldorado Gold from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 23rd. Bank of America raised shares of Eldorado Gold from an "underperform" rating to a "buy" rating and upped their price target for the stock from $32.00 to $54.00 in a report on Tuesday, September 22nd. Finally, Scotiabank decreased their price target on Eldorado Gold from $55.00 to $47.00 and set a "sector outperform" rating for the company in a report on Tuesday, July 14th. Three equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Eldorado Gold presently has an average rating of "Moderate Buy" and an average target price of $46.57.

Institutional Investors Weigh In On Eldorado Gold

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Van ECK Associates Corp grew its position in shares of Eldorado Gold by 39.0% in the 2nd quarter. Van ECK Associates Corp now owns 18,678,256 shares of the basic materials company's stock worth $580,739,000 after buying an additional 5,241,277 shares during the last quarter. Caisse de depot et placement du Quebec bought a new position in Eldorado Gold in the 2nd quarter worth $7,356,000. Jupiter Topco LLC purchased a new stake in shares of Eldorado Gold in the 2nd quarter worth about $3,621,000. Bank of America Corp DE purchased a new position in shares of Eldorado Gold during the second quarter valued at about $18,797,000. Finally, Fund 1 Investments LLC purchased a new position in shares of Eldorado Gold during the second quarter valued at about $2,577,000. 69.58% of the stock is currently owned by institutional investors.

Eldorado Gold Trading Down 7.5%

The company has a market capitalization of $8.34 billion, a P/E ratio of 11.31, a P/E/G ratio of 0.29 and a beta of 0.67. The stock's 50 day moving average is $40.21 and its 200-day moving average is $36.99. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.31 and a quick ratio of 0.85.

About Eldorado Gold

Eldorado Gold Corporation is a Canadian mining company focused on the exploration, development and operation of gold properties. The company produces gold and related by-products, including silver, and manages a portfolio of mines and development projects in Türkiye, Greece and Canada.

Eldorado's operations and projects include the Kisladag and Efemcukuru gold mines in Türkiye, the Olympias polymetallic mine and Skouries copper-gold project in Greece, and the Lamaque gold operation in Quebec, Canada.

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