Royal Gold, Inc: An Overview of the Company’s Performance and Position in the Market
When it comes to precious metal streams, royalties, and similar interests, Royal Gold, Inc. (NASDAQ:RGLD) (TSE:RGL) is a leading name in the industry. The company has been making headlines lately on its performance and position in the market. According to Bloomberg.com, Royal Gold has garnered a consensus recommendation of “Hold” from eleven brokerages that are presently covering the firm.
Five equities research analysts have rated the stock with a hold rating and four have issued a buy-rating on the company. The average 1-year price object amongst analysts that have issued ratings on the stock in the last year stands at $139.00; this depicts investors’ confidence in Royal Gold’s growth prospects.
Royal Gold is divided into two segments – Acquisition and Management of Stream Interests segment as well as Acquisition and Management of Royalty Interests segment. The former focuses on metal streams while the latter centers around royalty interests.
Shares of RGLD opened at $138.91 on Tuesday reflecting an upward trend despite recent challenges faced by some players within the industry due to COVID-19 related disruptions which had a ripple effect globally. A close study of Royal Gold reveals that while it’s not immune to these events and market fluctuations, its financial position may seemingly protect it from disruptive shocks like these.
In addition to this financial stability, its current ratio of 2.92 gives it tangible assets backing up any near-term liabilities coupled with its debt-to-equity ratio of 0.21 indicating adequate buffer before earnings before interest expenses (EBITDA) turns negative compared with other peers within this space amplifying investor confidence across board.
The business’s 50-day moving average is $125.33 while its two-hundred day moving averages are $115 indicating slow but steady value appreciation over time within shareholder’s investment portfolios. The company has a market cap of $9.12 billion, a PE ratio of 38.16 and a price-to-earnings-growth ratio of 3.56 with a beta of 0.65.
In conclusion, Royal Gold continues to showcase resilience and growth potential as analysts believe the stock could reach $139 in the next twelve months. Hence, investors who are willing to hold onto their shares may benefit from the long-term prospects and stability that Royal Gold provides in turbulent times while experiencing some capital appreciation along the way.
Analysts and Institutional Investors Show Confidence in Royal Gold’s Growth Prospects
Investment analysts have recently released recommendations on shares of Royal Gold Inc (NASDAQ:RGLD) (TSE:RGL), with the consensus about the precious metal streaming company being generally positive. The equity research analysts from Barclays, TD Securities, National Bank Financial and National Bankshares all raised their target prices for the stock. They are now in a range of $119 to C$155 and rated it “equal weight”, “buy” and “sector perform”, respectively.
Institutional investors have also affected the price potential of Royal Gold’s shares through acquisitions and selling of stakes. Most recently, this includes Harbor Investment Advisory LLC growing its holdings in Royal Gold by 200%, while Fiduciary Alliance LLC bought a new stake in Q4 2016. Fifth Third Bancorp increased its stake by 68%, with Ulland Investment Advisors LLC and Quent Capital LLC also acquiring new positions.
With regard to operations, Royal Gold specialises in acquiring and managing precious metal streams, royalties and similar interests, using a combination of know-how, capital and intellectual property to bolster its position as an industry leader. In terms of results from Q3 2017, the company reported $0.91 earnings per share (EPS), topping consensus estimates by $0.18; revenue was $162.98m versus an estimated $153.04m.
Furthermore, Royal Gold has declared a quarterly dividend – payable on 21 April – signalling confidence in the business’ growth prospects for current shareholders who will collect a $0.375 per share payout at ex-dividend date on April 5th.
Given these factors, industry followers expect positive news for future earning reports, with predictions pegged at around 3.97 EPS for FY17 due to a combination of operational strength from acquisitions and market demand driven by present US inflation figures that bode well for gold markets.
Overall, the future seems bright for the mineral resources company, with factors such as positive earnings per share, institutional behaviour and confidence in its strategy boosting Royal Gold’s growth prospects in the short to medium term.