Is New Gold Inc.’s (AMEX: NGD) Stock Due For A Strong Run?

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In the latest trading session, 0.87 million New Gold Inc. (AMEX:NGD) shares changed hands as the company’s beta touched 1.89. With the company’s most recent per share price at $0.70 changed hands at -$0.02 or -2.93% at last look, the market valuation stands at $627.50M. NGD’s current price is a discount, trading about -188.57% off its 52-week high of $2.02. The share price had its 52-week low at $0.67, which suggests the last value was 4.29% up since then. When we look at New Gold Inc.’s average trading volume, we note the 10-day average is 7.27 million shares, with the 3-month average coming to 4.96 million.

Analysts gave the New Gold Inc. (NGD) stock a consensus recommendation rating of a Hold, calculated at a mean rating of 2.80. If we narrow down to specifics, the data shows that 0 out of 12 analysts rate the stock as a Sell, with a further 0 assigning it an Overweight rating. Of the remaining, 8 recommended NGD as a Hold, 3 felt it is a Buy and 1 rated the stock as Underweight. New Gold Inc.’s EPS for the current quarter is expected to be $0.03.

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Instantly NGD was in red as seen in intraday trades today. With action 1.20%, the performance over the past five days has been green. The drop to weekly highs of 0.7405 on Friday, 07/22/22 subtracted -2.93% to the stock’s daily price. The company’s shares are showing year-to-date downside of -52.20%, with the 5-day performance at 1.20% in the green. However, in the 30-day time frame, New Gold Inc. (AMEX:NGD) is -39.24% down. Looking at the short shares, we see there were 4.06 million shares sold at short interest cover period of 0.76 days.

The consensus price target for the stock as assigned by Wall Street analysts is $1.21, meaning bulls need an upside of 42.15% from its recent market value. According to analyst projections, NGD’s forecast low is $0.77 with $2.11 as the target high. To hit the forecast high, the stock’s price needs a -201.43% plunge from its current level, while the stock would need to soar -10.0% for it to hit the projected low.

New Gold Inc. (NGD) estimates and forecasts

Data shows that the New Gold Inc. share is performing relatively much not better than most of its peers within the same industry. As can be gleaned from the statistics, the company’s share value shot -58.31% over the past 6 months, a -116.67% in annual growth rate that is considerably lower than the industry average of 6.20%. Moreover, analysts have looked to lower expectations by upgrading its fiscal year 2022 revenue estimates. The rating firms predict current quarter revenue for New Gold Inc. will fall -25.00%, while the growth in revenue is estimated to hit 33.30% for the next quarter. Year-over-year growth is forecast to reach 1.80% up from the last financial year.

Consensus estimates given by 3 financial analysts project the company’s revenue in the current quarter to hit an average of $183.53 million. 2 analysts are of the opinion that New Gold Inc.’s revenue for the quarter ending Sep 2022 will be $197.82 million. The company’s revenue for the corresponding quarters a year ago was $198.2 million and $179.8 million respectively. According to analysts, the company will likely register a growth in its current quarter sales, forecast at -7.40%. The estimates for the next quarter sales put growth at 10.00%.

Looking at the company’s year-on-year earnings, data shows that the past 5-year has an earnings growth rate of -12.39%. The 2022 estimates are for New Gold Inc. earnings to decrease by -91.70%, but the outlook for the next 5-year period is at 8.65% per year.

NGD Dividends

New Gold Inc. is expected to release its next quarterly earnings report between February 16 and February 21.

New Gold Inc. (AMEX:NGD)’s Major holders

If we look at who the major shareholders are, we find that insiders hold 0.26% of New Gold Inc. shares while 54.77% of the shares are in the hands of institutional holders. The share float percentage for the stock currently stands at 54.91%. There are 54.77% institutions holding the New Gold Inc. stock share, with Van Eck Associates Corporation the top institutional holder. As of Mar 30, 2022, the company held 10.17% of the shares, roughly 69.32 million NGD shares worth $124.77 million.

Renaissance Technologies, LLC holds the second largest percentage of outstanding shares, with 2.40% or 16.36 million shares worth $24.54 million as of Dec 30, 2021.

Among Mutual Funds, the top two as of Dec 30, 2021 were VanEck ETF Trust-VanEck Gold Miners ETF and VanEck ETF Trust-VanEck Junior Gold Miners ETF. With 30.4 million shares estimated at $45.61 million under it, the former controlled 4.46% of total outstanding shares. On the other hand, VanEck ETF Trust-VanEck Junior Gold Miners ETF held about 4.30% of the shares, roughly 29.28 million shares worth around $50.66 million.