Royal Gold (RGLD) Downgraded by Zacks Investment Research to “Strong Sell”

Zacks Investment Research downgraded shares of Royal Gold (NASDAQ:RGLD) (TSE:RGL) from a hold rating to a strong sell rating in a report released on Friday.

According to Zacks, “Royal Gold provided an update on first-quarter fiscal 2019 operations. The company ended the reported quarter with 20,000 ounces of gold, 545,000 ounces of silver and 350 ton of copper. The fiscal first-quarter sales performance was impacted by reduced sales at Mount Milligan due to lack of sufficient water sources. The company is trying to reach a long-term water solution. Royal Gold is also exposed to a highly volatile gold price environment. Royal Gold’s stretched valuation is also a concern.”

Several other research analysts have also recently issued reports on the company. Barclays began coverage on Royal Gold in a research report on Wednesday, October 10th. They issued an equal weight rating and a $78.00 target price on the stock. BidaskClub cut Royal Gold from a hold rating to a sell rating in a research report on Thursday, July 12th. Canaccord Genuity set a $102.00 target price on Royal Gold and gave the stock a buy rating in a research report on Tuesday, July 24th. ValuEngine cut Royal Gold from a buy rating to a hold rating in a research report on Thursday, July 26th. Finally, Desjardins reissued a buy rating and issued a $100.00 target price on shares of Royal Gold in a research report on Wednesday, July 18th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating and seven have issued a buy rating to the company. Royal Gold currently has an average rating of Hold and an average price target of $97.86.



Royal Gold stock opened at $75.72 on Friday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.27 and a current ratio of 2.45. Royal Gold has a one year low of $71.91 and a one year high of $98.53. The firm has a market cap of $4.96 billion, a P/E ratio of 43.02, a price-to-earnings-growth ratio of 4.49 and a beta of 0.43.

Royal Gold (NASDAQ:RGLD) (TSE:RGL) last released its quarterly earnings data on Wednesday, August 8th. The basic materials company reported $0.43 EPS for the quarter, meeting the consensus estimate of $0.43. Royal Gold had a positive return on equity of 5.17% and a negative net margin of 24.65%. The company had revenue of $116.20 million for the quarter, compared to analysts’ expectations of $115.57 million. During the same period last year, the firm posted $0.31 earnings per share. Royal Gold’s revenue was up 6.7% compared to the same quarter last year. As a group, equities analysts anticipate that Royal Gold will post 1.69 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, October 19th. Shareholders of record on Friday, October 5th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, October 4th. This represents a $1.00 annualized dividend and a yield of 1.32%. Royal Gold’s payout ratio is 56.82%.

In related news, Director Sybil E. Veenman acquired 500 shares of the firm’s stock in a transaction dated Wednesday, September 26th. The shares were purchased at an average price of $78.11 per share, with a total value of $39,055.00. Following the completion of the purchase, the director now directly owns 2,515 shares of the company’s stock, valued at $196,446.65. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Jamie C. Sokalsky acquired 2,000 shares of the firm’s stock in a transaction dated Monday, September 17th. The stock was bought at an average cost of $77.18 per share, for a total transaction of $154,360.00. Following the purchase, the director now directly owns 10,185 shares of the company’s stock, valued at $786,078.30. The disclosure for this purchase can be found here. Insiders acquired 4,500 shares of company stock worth $347,915 over the last three months. Insiders own 0.95% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of RGLD. Northwestern Mutual Wealth Management Co. bought a new position in shares of Royal Gold in the second quarter worth about $151,000. Pendal Group Ltd raised its stake in shares of Royal Gold by 100.3% in the second quarter. Pendal Group Ltd now owns 2,069 shares of the basic materials company’s stock worth $192,000 after buying an additional 1,036 shares during the period. Advisor Partners LLC bought a new position in shares of Royal Gold in the second quarter worth about $219,000. CIBC Asset Management Inc bought a new position in shares of Royal Gold in the second quarter worth about $220,000. Finally, GSA Capital Partners LLP bought a new position in shares of Royal Gold in the first quarter worth about $222,000. 75.19% of the stock is currently owned by hedge funds and other institutional investors.

Royal Gold Company Profile

Royal Gold, Inc engages in the acquisition and management of metal streams, royalties, and similar interests. It operates through the Acquisition and Management of Stream Interests and Acquisition and Management of Royalty Interests segments. The Acquisition and Management of Stream Interests segment involves in the purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals.

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