Novagold Resources (NYSEAMERICAN:NG) Shares Down 6.5% - Here's Why

Key Points

• NovaGold shares fell 6.5% to about $7.27 in Wednesday trading, with volume sharply below the stock’s average session volume.
• Despite the decline, analysts remain broadly positive: the stock has a consensus “Buy” rating and an average price target of $12.42, compared with its recent trading level.
• NovaGold reported a quarterly loss of $0.06 per share and is expected to remain unprofitable this fiscal year. The company is focused on developing the Donlin Gold project in Alaska, a 50%-owned joint venture with Barrick Gold.

Shares of Novagold Resources Inc. (NYSEAMERICAN:NG - Get Free Report) TSE: NG fell 6.5% during trading on Wednesday . The stock traded as low as $7.19 and last traded at $7.2680. 732,750 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 4,329,913 shares. The stock had previously closed at $7.77.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the stock. B. Riley Financial began coverage on shares of Novagold Resources in a research report on Monday, August 3rd. They set a "buy" rating and a $9.00 target price for the company. Morgan Stanley lowered their price target on shares of Novagold Resources from $13.80 to $13.60 and set an "overweight" rating on the stock in a report on Wednesday, July 8th. One 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 stock presently has a consensus rating of "Buy" and a consensus target price of $12.42.

Novagold Resources Stock Down 7.7%

The stock has a 50 day moving average of $7.32 and a 200-day moving average of $7.99. The firm has a market capitalization of $3.15 billion, a P/E ratio of -42.08 and a beta of 0.92. The company has a debt-to-equity ratio of 0.41, a quick ratio of 112.82 and a current ratio of 112.82.

Novagold Resources (NYSEAMERICAN:NG - Get Free Report) TSE: NG last issued its earnings results on Wednesday, July 22nd. The mining company reported ($0.06) earnings per share for the quarter. Research analysts predict that Novagold Resources Inc. will post -0.13 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Novagold Resources

A number of hedge funds and other institutional investors have recently bought and sold shares of NG. Quantinno Capital Management LP boosted its stake in Novagold Resources by 1,075.2% in the 1st quarter. Quantinno Capital Management LP now owns 358,148 shares of the mining company's stock worth $3,216,000 after purchasing an additional 327,672 shares during the period. Renaissance Technologies LLC bought a new stake in shares of Novagold Resources during the first quarter valued at about $7,972,000. International Assets Investment Management LLC purchased a new stake in shares of Novagold Resources in the first quarter worth about $950,000. Groupe la Francaise bought a new position in shares of Novagold Resources in the first quarter valued at approximately $2,918,000. Finally, Greenwich Wealth Management LLC bought a new position in shares of Novagold Resources in the fourth quarter valued at approximately $18,640,000. Institutional investors own 57.56% of the company's stock.

About Novagold Resources

NovaGold Resources Inc is a Canadian-based mineral exploration and development company focused on advancing the Donlin Gold project in southwestern Alaska. The company does not currently operate producing mines; its principal asset is its 50% interest in Donlin Gold LLC, which owns the Donlin Gold project. Barrick Gold Corporation owns the remaining 50% interest and is the project operator.

Donlin Gold is one of the largest undeveloped gold deposits in the world. The project is located in the Yukon-Kuskokwim region of Alaska, approximately 145 miles northeast of the port of Bethel.

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