Royal Gold (NASDAQ:RGLD) Issues Quarterly Earnings Results

Key Points

• Royal Gold beat quarterly earnings expectations, reporting $2.56 per share versus the $2.55 consensus estimate. Earnings rose from $1.81 a year earlier, while revenue increased 114.9% year over year.
• The company paid a quarterly dividend of $0.475 per share, equivalent to $1.90 annually and a 0.9% yield, with a payout ratio of 22.65%.
• Analyst sentiment remains mixed: Royal Gold has a consensus “Hold” rating and an average price target of $280.27, despite several firms maintaining Buy or Outperform ratings and others lowering targets.

Royal Gold (NASDAQ:RGLD - Get Free Report) TSE: RGL posted its earnings results on Wednesday. The basic materials company reported $2.56 earnings per share for the quarter, beating analysts' consensus estimates of $2.55 by $0.01, FiscalAI reports. Royal Gold had a return on equity of 12.63% and a net margin of 48.59%.During the same quarter last year, the firm posted $1.81 earnings per share. The firm's revenue was up 114.9% compared to the same quarter last year.

Royal Gold Price Performance

Royal Gold stock traded up $9.06 during mid-day trading on Wednesday, hitting $215.09. 986,832 shares of the company traded hands, compared to its average volume of 682,703. The company has a debt-to-equity ratio of 0.08, a quick ratio of 3.26 and a current ratio of 3.52. Royal Gold has a one year low of $160.08 and a one year high of $306.25. The stock has a market cap of $18.25 billion, a price-to-earnings ratio of 25.64, a price-to-earnings-growth ratio of 1.50 and a beta of 0.44. The stock has a fifty day moving average price of $204.48 and a 200-day moving average price of $240.22.

Royal Gold Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 16th. Shareholders of record on Thursday, July 2nd were given a dividend of $0.475 per share. The ex-dividend date was Thursday, July 2nd. This represents a $1.90 annualized dividend and a yield of 0.9%. Royal Gold's payout ratio is presently 22.65%.

Insider Activity at Royal Gold

In other news, SVP Randy Shefman sold 1,000 shares of the firm's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $243.74, for a total transaction of $243,740.00. Following the sale, the senior vice president owned 9,082 shares in the company, valued at approximately $2,213,646.68. This trade represents a 9.92% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.35% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Gen Wealth Partners Inc purchased a new stake in Royal Gold during the fourth quarter valued at about $27,000. Sunbelt Securities Inc. boosted its holdings in shares of Royal Gold by 8,400.0% in the 3rd quarter. Sunbelt Securities Inc. now owns 170 shares of the basic materials company's stock worth $34,000 after purchasing an additional 168 shares in the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of Royal Gold by 54.2% in the 4th quarter. Smartleaf Asset Management LLC now owns 495 shares of the basic materials company's stock worth $112,000 after purchasing an additional 174 shares in the last quarter. Geneos Wealth Management Inc. increased its position in shares of Royal Gold by 32.4% during the 2nd quarter. Geneos Wealth Management Inc. now owns 711 shares of the basic materials company's stock valued at $126,000 after purchasing an additional 174 shares during the last quarter. Finally, Larson Financial Group LLC increased its position in shares of Royal Gold by 27.9% during the 3rd quarter. Larson Financial Group LLC now owns 651 shares of the basic materials company's stock valued at $131,000 after purchasing an additional 142 shares during the last quarter. 83.65% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Zacks Research cut shares of Royal Gold from a "hold" rating to a "strong sell" rating in a research note on Friday, July 31st. Royal Bank Of Canada cut their price target on shares of Royal Gold from $310.00 to $305.00 and set an "outperform" rating for the company in a report on Thursday, July 9th. Jefferies Financial Group cut their price target on shares of Royal Gold from $318.00 to $311.00 and set a "buy" rating for the company in a report on Monday, July 6th. Scotiabank restated a "sector perform" rating and set a $310.00 price target on shares of Royal Gold in a research report on Tuesday, July 14th. Finally, UBS Group decreased their price target on shares of Royal Gold from $325.00 to $280.00 and set a "buy" rating on the stock in a report on Tuesday, June 30th. Eight equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Royal Gold presently has an average rating of "Hold" and a consensus target price of $280.27.

About Royal Gold

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.

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