Lundin Gold (TSE:LUG) Stock Jumps 8.6% - Here's Why

Key Points

• Lundin Gold shares jumped 8.6% to C$94.19, reaching an intraday high of C$94.51, though trading volume was 47% below its average.
• Despite several analysts lowering price targets, the stock retains a consensus “Buy” rating with an average target of C$99.33.
• The company reported C$1.19 in quarterly EPS and C$678.7 million in revenue, while increasing its quarterly dividend to C$1.0934, equivalent to a 4.6% annual yield.

Lundin Gold Inc. (TSE:LUG - Get Free Report)'s stock price shot up 8.6% on Friday. The stock traded as high as C$94.51 and last traded at C$94.19. Approximately 326,738 shares were traded during trading, a decline of 47% from the average daily volume of 616,043 shares. The stock had previously closed at C$86.71.

Analyst Upgrades and Downgrades

LUG has been the subject of several recent analyst reports. Canadian Imperial Bank of Commerce reduced their target price on shares of Lundin Gold from C$137.00 to C$131.00 in a research note on Monday, August 10th. Desjardins cut their target price on Lundin Gold from C$105.00 to C$100.00 and set a "buy" rating on the stock in a research note on Monday, July 27th. Jefferies Financial Group decreased their price target on Lundin Gold from C$90.00 to C$88.00 in a research report on Monday, July 6th. Finally, Royal Bank Of Canada dropped their price target on Lundin Gold from C$98.00 to C$89.00 in a report on Wednesday, September 16th. Two investment analysts have rated the stock with a Buy rating, According to MarketBeat, Lundin Gold currently has a consensus rating of "Buy" and an average target price of C$99.33.

Lundin Gold Stock Performance

The company's 50 day moving average price is C$92.53 and its 200-day moving average price is C$90.89. The company has a market cap of C$22.92 billion, a PE ratio of 24.62 and a beta of 1.69.

Lundin Gold (TSE:LUG - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported C$1.19 earnings per share (EPS) for the quarter. Lundin Gold had a return on equity of 81.63% and a net margin of 46.31%.The business had revenue of C$678.70 million during the quarter. Equities research analysts expect that Lundin Gold Inc. will post 2.5603448 EPS for the current year.

Lundin Gold Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 25th were paid a $1.0934 dividend. The ex-dividend date was Thursday, September 10th. This represents a $4.37 dividend on an annualized basis and a yield of 4.6%. This is an increase from Lundin Gold's previous quarterly dividend of $0.91. Lundin Gold's dividend payout ratio (DPR) is presently 102.60%.

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world. The Company's board and management team have extensive expertise and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders through operational excellence and growth, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.