Novagold Resources (NYSEAMERICAN:NG) Shares Gap Down - Should You Sell?

Key Points

• NovaGold shares fell 5.8%, opening at $6.72 versus a prior close of $7.13, and last traded near $6.78.
• Analysts remain broadly positive, with a consensus “Buy” rating and a $12.42 target price; recent targets include $9.00 from B. Riley and $13.60 from Morgan Stanley.
• The company reported a quarterly loss of $0.06 per share and is expected to post a $0.13 per-share loss for the fiscal year. NovaGold has no producing mines and is focused on its 50% stake in Alaska’s undeveloped Donlin Gold project.

Novagold Resources Inc. (NYSEAMERICAN:NG - Get Free Report) TSE: NG's stock price gapped down before the market opened on Monday. The stock had previously closed at $7.13, but opened at $6.72. Novagold Resources shares last traded at $6.7780, with a volume of 557,374 shares.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on NG. B. Riley Financial began coverage on Novagold Resources in a research report on Monday, August 3rd. They issued a "buy" rating and a $9.00 target price for the company. Morgan Stanley dropped their price target 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. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $12.42.

Novagold Resources Trading Down 5.8%

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 business's 50-day moving average is $7.43 and its two-hundred day moving average is $7.89. The firm has a market cap of $2.95 billion, a P/E ratio of -39.56 and a beta of 0.92.

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

Institutional Trading of Novagold Resources

Several hedge funds have recently made changes to their positions in the stock. Electrum Group LLC bought a new position in Novagold Resources during the 4th quarter worth $865,854,000. Principal Financial Group Inc. lifted its stake in Novagold Resources by 32,405.9% in the first quarter. Principal Financial Group Inc. now owns 5,722,006 shares of the mining company's stock valued at $51,380,000 after buying an additional 5,704,403 shares during the last quarter. Amundi lifted its stake in Novagold Resources by 11.5% in the first quarter. Amundi now owns 5,050,474 shares of the mining company's stock valued at $45,353,000 after buying an additional 521,388 shares during the last quarter. Greenwich Wealth Management LLC acquired a new position in shares of Novagold Resources during the fourth quarter valued at $18,640,000. Finally, TD Asset Management Inc boosted its holdings in shares of Novagold Resources by 77.5% during the fourth quarter. TD Asset Management Inc now owns 1,607,877 shares of the mining company's stock valued at $15,014,000 after acquiring an additional 701,902 shares during the period. Institutional investors own 57.56% of the company's stock.

Novagold Resources Company Profile

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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