Kinross Gold Corporation (NYSE: KGC) – Suitable For Long Term Buy?


    Arrowstreet Capital LP recently announced the acquisition of new stake in Kinross Gold Corporation (NYSE:KGC). The institutional investor has increased its shareholding in the Basic Materials company by 100.29% to 18.65 million shares with purchase of 9.34 million shares. This fresh investment now brings its stake to 1.48% valued currently at $174.73 million. In addition, Altrinsic Global Advisors LLC raised its holdings by 0.97 million to 17.54 million shares.

    With over 14.0 million Kinross Gold Corporation (KGC) shares trading Monday and a closing price of $8.88 on the day, the dollar volume was approximately $124.3 million. The shares have shown a positive weekly performance of 4.47% and its price on 08/31/20 lost nearly -0.11%. Currently, there are 1.26B common shares owned by the public and among those 1.25B shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for KGC have a consensus price objective of $10.50. The analysts have set the share’s price value over the next 12 months at a high of $13.46 and a low of $7.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Kinross Gold Corporation stock is 2.10 for the next 12 months. The average price target is 15.83% above its last price level and an upside to the estimated low will see the stock lose -26.86% over that period. But an upside of 34.03% will see the stock hit the forecast high price target while mean target price for the stock is $10.59.

    The top 3 mutual fund holders in Kinross Gold Corporation are VanEck Vectors – Gold Miners ETF, VanEck Vectors – Junior Gold Mine, and BlackRock Global Funds – World Go. VanEck Vectors – Gold Miners ETF owns 67.84 million shares of the company’s stock, all valued at over $635.66 million. The company bought an additional 0.21 million shares recently to bring their total holdings to about 5.39% of the shares outstanding. VanEck Vectors – Junior Gold Mine bought 0.62 million shares to see its total holdings expand to 47.45 million shares valued at over $444.58 million and representing 3.77% of the shares outstanding. BlackRock Global Funds – World Go bought 0.45 million shares to bring its total holdings to over 35.66 million shares at a value of $334.12 million. BlackRock Global Funds – World Go now owns shares totaling to 2.84% of the shares outstanding.

    Shares of Kinross Gold Corporation (NYSE: KGC) opened at $8.96, up $0.07 from a prior closing price of $8.89. However, the script later closed the day at $8.88, down -0.11%. The company’s stock has a 5-day price change of 4.47% and 39.40% over the past three months. KGC shares are trading 87.34% year to date (YTD), with the 12-month market performance up to 78.67% higher. It has a 12-month low price of $2.72 and touched a high of $10.20 over the same period. Currently, 14.0 million shares have been traded, compared to an average intraday trading volume of 17.73 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 -1.29%, 8.09%, and 46.90% respectively.

    Institutional ownership of Kinross Gold Corporation (NYSE: KGC) shares accounts for 69.90% of the company’s 1.26B shares outstanding. Mutual fund holders own 12.55%, while other institutional holders and individual stakeholders account for 47.46% and — respectively.

    It has a market capitalization of $10.63B and a beta (3y monthly) value of 1.03. The stock’s trailing 12-month PE ratio is 12.47, while the earnings-per-share (ttm) stands at $0.71. The company has a PEG of 0.63 and a Quick Ratio of 2.50 with the debt-to-equity ratio at 0.48. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.09% over the week and 4.44% over the month.

    Analysts forecast that Kinross Gold Corporation (KGC) will achieve an EPS of $0.17 for the current quarter, $0.2 for the next quarter and $0.8 for 2021. The lowest estimate earnings-per-share for the quarter is $0.11 while analysts give the company a high EPS estimate of $0.22. Comparatively, EPS for the current quarter was $0.08 a year ago. Earnings per share for the fiscal year are expected to increase by 88.20%, and 25.63% over the next financial year. EPS should grow at an annualized rate of 19.90% over the next five years, compared to 19.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Kinross Gold Corporation (KGC) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 5 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the KGC, a number of firms have released research notes about the stock. BofA Securities stated their Buy rating for the stock in a research note on August 05, 2020, with the firm’s price target at $11.25. RBC Capital Mkts coverage for the Kinross Gold Corporation (KGC) stock in a research note released on June 16, 2020 offered a Outperform rating with a price target of $7.50. Scotiabank was of a view on April 16, 2020 that the stock is Sector Outperform, while Credit Suisse gave the stock Neutral rating on January 23, 2020, issuing a price target of. RBC Capital Mkts on their part issued Sector Perform rating on December 05, 2019.


    Please enter your comment!
    Please enter your name here