Stock Traders Purchase Large Volume of Kinross Gold Call Options (NYSE:KGC)

Key Points

• Kinross Gold Corporation saw a significant rise in options trading, with investors purchasing 18,139 call options, representing a 65% increase from typical volumes.
• The company's stock price increased by 1.9% to $24.56, with a notable year-on-year revenue growth of 41.7% in its latest earnings report.
• A recent quarterly dividend of $0.03 per share was declared, yielding 0.5%, with a low payout ratio of 9.68% indicating strong earnings retention.

Kinross Gold Corporation (NYSE:KGC - Get Free Report) TSE: K saw unusually large options trading activity on Monday. Stock investors acquired 18,139 call options on the stock. This is an increase of 65% compared to the typical volume of 10,994 call options.

Kinross Gold Stock Up 1.9%

Shares of NYSE:KGC traded up $0.45 during midday trading on Monday, hitting $24.56. The stock had a trading volume of 5,211,854 shares, compared to its average volume of 20,336,617. Kinross Gold has a 12 month low of $8.99 and a 12 month high of $24.91. The company has a quick ratio of 1.45, a current ratio of 2.84 and a debt-to-equity ratio of 0.16. The business's 50-day simple moving average is $20.03 and its 200-day simple moving average is $16.35. The company has a market cap of $29.77 billion, a P/E ratio of 19.76, a PEG ratio of 0.77 and a beta of 0.61.

Kinross Gold (NYSE:KGC - Get Free Report) TSE: K last released its earnings results on Wednesday, July 30th. The mining company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.11. Kinross Gold had a net margin of 25.18% and a return on equity of 20.04%. The business had revenue of $1.75 billion during the quarter, compared to analysts' expectations of $1.52 billion. During the same period last year, the business earned $0.14 earnings per share. The firm's revenue was up 41.7% on a year-over-year basis. On average, sell-side analysts forecast that Kinross Gold will post 0.81 earnings per share for the current fiscal year.

Kinross Gold Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Thursday, August 21st were given a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, August 21st. Kinross Gold's payout ratio is 9.68%.

Analyst Ratings Changes

Several equities analysts have recently weighed in on KGC shares. National Bankshares reaffirmed an "outperform" rating on shares of Kinross Gold in a research note on Tuesday, June 24th. UBS Group raised their price target on shares of Kinross Gold from $20.00 to $27.00 and gave the stock a "buy" rating in a research note on Friday, September 19th. CIBC raised their price target on shares of Kinross Gold from $21.00 to $22.00 and gave the stock an "outperformer" rating in a research note on Friday, August 1st. Raymond James Financial raised shares of Kinross Gold to a "hold" rating and set a $15.00 price target for the company in a research note on Monday, June 30th. Finally, Zacks Research cut shares of Kinross Gold from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 1st. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $21.07.

Hedge Funds Weigh In On Kinross Gold

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Kinross Gold by 1.2% during the first quarter. Vanguard Group Inc. now owns 47,926,769 shares of the mining company's stock worth $603,829,000 after purchasing an additional 561,563 shares during the period. Boston Partners boosted its position in Kinross Gold by 36.5% during the first quarter. Boston Partners now owns 47,526,913 shares of the mining company's stock worth $632,797,000 after purchasing an additional 12,705,061 shares during the period. Norges Bank bought a new position in Kinross Gold during the second quarter worth $389,025,000. Man Group plc boosted its position in Kinross Gold by 47.8% during the second quarter. Man Group plc now owns 16,739,969 shares of the mining company's stock worth $261,646,000 after purchasing an additional 5,411,491 shares during the period. Finally, First Eagle Investment Management LLC boosted its position in Kinross Gold by 0.3% during the second quarter. First Eagle Investment Management LLC now owns 11,825,153 shares of the mining company's stock worth $184,827,000 after purchasing an additional 37,942 shares during the period. 63.69% of the stock is owned by institutional investors.

Kinross Gold Company Profile

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada.

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