New Gold Inc. (AMEX: NGD): The Best-Of-Breed For Investing?


    Van Eck Associates Corp. recently announced the acquisition of new stake in New Gold Inc. (AMEX:NGD). The institutional investor has increased its shareholding in the Basic Materials company by 0.18% to 63.18 million shares with purchase of 0.12 million shares. This fresh investment now brings its stake to 9.35% valued currently at $104.25 million. In addition, Renaissance Technologies LLC raised its holdings by 1.05 million to 21.48 million shares. And Connor, Clark & Lunn Investment M. has lifted its position by 9.19% or 1.16 million shares – to 13.77 million shares.

    With over 4.09 million New Gold Inc. (NGD) shares trading Monday and a closing price of $1.50 on the day, the dollar volume was approximately $6.14 million. The shares have shown a negative weekly performance of -10.18% and its price on 08/24/20 lost nearly -1.32%. Currently, there are 676.00M common shares owned by the public and among those 674.71M shares have been available to trade.

    Incidentally, analysts’ outlook for the New Gold Inc. stock is 2.70 for the next 12 months.

    The top 3 mutual fund holders in New Gold Inc. are VanEck Vectors – Gold Miners ETF, VanEck Vectors – Junior Gold Mine, and Kopernik Global All Cap Fund. VanEck Vectors – Gold Miners ETF owns 36.48 million shares of the company’s stock, all valued at over $60.19 million. The company bought an additional 0.11 million shares recently to bring their total holdings to about 5.40% of the shares outstanding. VanEck Vectors – Junior Gold Mine bought 0.32 million shares to see its total holdings expand to 24.45 million shares valued at over $40.34 million and representing 3.62% of the shares outstanding. Kopernik Global All Cap Fund sold -1.06 million shares to bring its total holdings to over 16.11 million shares at a value of $26.57 million. Kopernik Global All Cap Fund now owns shares totaling to 2.38% of the shares outstanding.

    Shares of New Gold Inc. (AMEX: NGD) opened at $1.53, up $0.01 from a prior closing price of $1.52. However, the script later closed the day at $1.50, down -1.32%. The company’s stock has a 5-day price change of -10.18% and 29.31% over the past three months. NGD shares are trading 70.45% year to date (YTD), with the 12-month market performance up to 25.00% higher. It has a 12-month low price of $0.39 and touched a high of $1.76 over the same period. Currently, 4.09 million shares have been traded, compared to an average intraday trading volume of 8.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -5.87%, 4.24%, and 49.06% respectively.

    Institutional ownership of New Gold Inc. (AMEX: NGD) shares accounts for 55.10% of the company’s 676.00M shares outstanding. Mutual fund holders own 16.06%, while other institutional holders and individual stakeholders account for 27.72% and — respectively.

    It has a market capitalization of $1.05B and a beta (3y monthly) value of 2.21. The earnings-per-share (ttm) stands at -$0.15. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.70% over the week and 6.32% over the month.

    Analysts forecast that New Gold Inc. (NGD) will achieve an EPS of $0.01 for the current quarter, $0.01 for the next quarter and $0.11 for 2018. The lowest estimate earnings-per-share for the quarter is -$0.02 while analysts give the company a high EPS estimate of $0.03. Comparatively, EPS for the current quarter was $0 a year ago. Earnings per share for the fiscal year are expected to increase by 93.60%, and 60.00% over the next financial year. EPS should shrink at an annualized rate of 5.00% over the next five years, compared to 33.80% over the past 5-year period.

    Looking at the support for the NGD, a number of firms have released research notes about the stock. CIBC stated their Neutral rating for the stock in a research note on March 18, 2020, with the firm’s price target at. CIBC coverage for the New Gold Inc. (NGD) stock in a research note released on February 14, 2020 offered a Sector Underperform rating with a price target of. RBC Capital Mkts was of a view on December 05, 2019 that the stock is Underperform, while RBC Capital Mkts gave the stock Sector Perform rating on September 05, 2019, issuing a price target of. JP Morgan on their part issued Underweight rating on May 30, 2019.


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