Royal Gold (NASDAQ:RGLD) Issues Quarterly Earnings Results

Key Points

• Quarterly results: Royal Gold reported EPS of $2.72, missing the $2.81 consensus, but revenue beat at $479.14 million and was up 142.5% year-over-year.
• Market reaction and valuation: Shares rose to $236.88 on heavy volume; the company has a $20.1B market cap, a P/E of 34.8 and a modest annual dividend yield of 0.8% ($1.90/year).
• Ownership and analyst view: Insiders have been selling recently while several institutions (notably Goldman Sachs) materially increased stakes; analysts have a consensus "Moderate Buy" rating with an average target of $273.64.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL announced its quarterly earnings data on Wednesday. The basic materials company reported $2.72 EPS for the quarter, missing the consensus estimate of $2.81 by ($0.09), FiscalAI reports. Royal Gold had a net margin of 45.26% and a return on equity of 11.89%. The firm had revenue of $479.14 million for the quarter, compared to analyst estimates of $474.04 million. During the same quarter in the prior year, the firm earned $1.51 earnings per share. The firm's revenue for the quarter was up 142.5% on a year-over-year basis.

Royal Gold Price Performance

Shares of NASDAQ:RGLD traded up $10.98 during trading on Wednesday, hitting $236.88. 1,363,378 shares of the company were exchanged, compared to its average volume of 745,886. The business's 50 day moving average is $258.49 and its 200-day moving average is $238.21. The company has a market capitalization of $20.10 billion, a P/E ratio of 34.78, a price-to-earnings-growth ratio of 1.78 and a beta of 0.43. The company has a quick ratio of 2.91, a current ratio of 3.12 and a debt-to-equity ratio of 0.12. Royal Gold has a 1-year low of $150.75 and a 1-year high of $306.25.

Royal Gold Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, April 16th. Stockholders of record on Thursday, April 2nd were issued a dividend of $0.475 per share. The ex-dividend date was Thursday, April 2nd. This represents a $1.90 annualized dividend and a dividend yield of 0.8%. Royal Gold's dividend payout ratio is 27.90%.

Insider Buying and Selling

In related news, Director Mark Isto sold 2,000 shares of the business's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $274.83, for a total value of $549,660.00. Following the sale, the director owned 20,043 shares of the company's stock, valued at $5,508,417.69. The trade was a 9.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Daniel Breeze sold 1,400 shares of the business's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $300.87, for a total transaction of $421,218.00. Following the completion of the sale, the senior vice president directly owned 20,140 shares in the company, valued at approximately $6,059,521.80. This represents a 6.50% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 7,573 shares of company stock valued at $2,127,091 over the last 90 days. 0.35% of the stock is owned by insiders.

Institutional Trading of Royal Gold

Several institutional investors have recently modified their holdings of RGLD. Goldman Sachs Group Inc. grew its stake in shares of Royal Gold by 99.5% in the first quarter. Goldman Sachs Group Inc. now owns 168,846 shares of the basic materials company's stock worth $27,608,000 after purchasing an additional 84,206 shares during the last quarter. Focus Partners Wealth grew its stake in shares of Royal Gold by 51.5% in the first quarter. Focus Partners Wealth now owns 8,465 shares of the basic materials company's stock worth $1,384,000 after purchasing an additional 2,876 shares during the last quarter. Brown Advisory Inc. grew its stake in shares of Royal Gold by 28.9% in the second quarter. Brown Advisory Inc. now owns 3,551 shares of the basic materials company's stock worth $631,000 after purchasing an additional 796 shares during the last quarter. Qube Research & Technologies Ltd grew its stake in shares of Royal Gold by 43.0% in the second quarter. Qube Research & Technologies Ltd now owns 188,247 shares of the basic materials company's stock worth $33,478,000 after purchasing an additional 56,621 shares during the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Royal Gold by 4.6% in the second quarter. NewEdge Advisors LLC now owns 24,551 shares of the basic materials company's stock worth $4,366,000 after purchasing an additional 1,072 shares during the last quarter. Institutional investors own 83.65% of the company's stock.

Analyst Ratings Changes

RGLD has been the subject of several research analyst reports. Zacks Research downgraded shares of Royal Gold from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 17th. Canadian Imperial Bank of Commerce reiterated a "neutral" rating and set a $330.00 price target on shares of Royal Gold in a report on Wednesday, February 4th. National Bank Financial lowered their price target on shares of Royal Gold from $350.00 to $340.00 and set an "outperform" rating for the company in a report on Friday, April 17th. Weiss Ratings reiterated a "buy (b)" rating on shares of Royal Gold in a report on Tuesday, April 21st. Finally, Scotiabank downgraded shares of Royal Gold from a "sector outperform" rating to a "sector perform" rating and set a $335.00 price target for the company. in a report on Monday, January 26th. Eight research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $273.64.

Royal Gold Company Profile

Royal Gold, Inc, headquartered in Denver, Colorado, is a leading precious metals streaming and royalty company. Through its business model, Royal Gold provides upfront financing to mining operators in exchange for the right to purchase a percentage of future metal production at predetermined prices. This structure allows the company to participate in production upside while minimizing exposure to the operating and capital-intensive aspects of mine ownership.

The company's portfolio encompasses interests in over 200 streams and royalties on projects across North America, South America, Europe, Africa and Australia.

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.