New Gold Inc. (NYSE:NGD) has been upgraded by JP Morgan, which now rates the stock as Neutral versus Underweight prior rating , according to a note issued on January 08. Analysts at RBC Capital Mkts, shed their positive views on August 15 by lowering it fromSector Perform to Underperform. The stock lost favor of Credit Suisse analysts who expressed their lack of confidence in it using a downgrade from Neutral to Underperform on July 26.
New Gold Inc. (NGD) hit an intraday high Tuesday at $1.32. The shares finished at $1.29, after trading as low as $1.2 earlier in the session. It rose 5.74% in recent trade and currently has a stock-market value of $746.52M. Trading activity significantly improved as the volume at ready counter increased to 5,313,039 shares versus 3,209,795 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,639,552 shares. The stock is now 86.96% above against its bear-market low of $0.69 on October 24, 2018. It has retreated -126.36% since it’s 52-week high of $2.92 reached in February. Now the market price is down -49.81% on the year and up 70.45% YTD.
NGD’s 50 day simple moving average (SMA 50) price is $0.96 and its 200-day simple moving average (SMA 200) price is $1.32. The company’s stock currently has a total float of 576.75M shares. Its weekly volatility is hovering around 6.65% and felt 6.3% volatility in price over a month. On the upside, the share price will test short term resistance at around $1.34. On a downside, the stock is likely to find some support, which begins at $1.22. The failure to get near-term support could push it to $1.15.
Wall Street’s most bullish New Gold Inc. (NYSE:NGD) analysts are predicting the share price to blow past $1.5 per share during the next 12 months. The current median share price forecast by them is $1.23, suggesting that the stock could increase -4.65% in that time frame. The average price target of $1.16 calls for a nearly -10.08% increase in the stock price.
Also, it is trading at rather inexpensive levels at just over 0.44x price/book and 1.17x price/sales. Compared to others, New Gold Inc. is in a different league with regards to profitability, having net margins of -82.2%. To put some perspective around this, the industry’s average net margin is 3.82%. NGD’s ROE is -27.2%, which is also considerably worse than the industry’s ROE of 9.63%. It’s also very liquid in the near term, with a current ratio of 2.1. The stock has a debt/capital of 0.56.
Shares of New Gold Inc. (NGD) have gained 74.3% since the company’s last earnings report. Over the past 12 fiscal quarters, New Gold Inc. (NYSE:NGD) has topped consensus earnings estimates in 4 quarters (33%), missed earnings in 4 quarters (33%), whereas at 4 occasion EPS met analyst expectations. NGD last reported earnings on October 24, 2018 when it released Sep-18 results that exceeded expectations. The company raked in -$0.01 per share, -99.98% change on the same period last year. That was better than consensus for -$0.03. Revenue for the recent quarter stood at $147.1 million, up 3% on last year and below the $198.67 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $617 million to $874 million, which should be compared with $972.99 million generated last year.