Kirkland Lake Gold Ltd. [KL] is -7.10% lower this YTD. Is it still time to buy?

Kirkland Lake Gold Ltd. [NYSE: KL] stock went on a downward path that fall over -4.21% on Wednesday, amounting to a one-week price decrease of less than -8.12%. The company report on November 14, 2020 that Kirkland Lake Gold Files Early Warning Report.

Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced that it has filed an early warning report in connection with the disposition of 1,095,900 common shares of Novo Resources Corp. (“Novo”).

Between August 13, 2020 and November 12, 2020, the Company disposed of 1,095,900 common shares of Novo (the “NVO Shares”) through the facilities of the Toronto Stock Exchange at an average price of $3.46 per NVO Share for a total consideration of $3,794,054. Prior to the dispositions, the Company held 29,081,568 NVO Shares and 14,000,000 warrants of Novo (the “NVO Warrants”) representing approximately 15.41% of the then issued and outstanding NVO Shares on a non-diluted basis and 21.25% on a partially diluted basis, assuming the exercise of the Novo Warrants. The Novo Warrants held by the Company expired unexercised on September 6, 2020. As a result, following the completion of these dispositions and together with Novo’s various issuances from treasury, the Company has decreased its holdings in Novo by 3.8%. Immediately following this disposition, the Company now holds 27,985,668 NVO Shares representing 12.1% of the issued and outstanding NVO Shares on a non-diluted basis.

Over the last 12 months, KL stock dropped by -15.95%.

The market cap for the stock reached $11.18 billion, with 272.98 million shares outstanding and 272.85 million shares in the current float. Compared to the average trading volume of 1.53M shares, KL stock reached a trading volume of 2749396 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Kirkland Lake Gold Ltd. [KL]:

ROTH Capital have made an estimate for Kirkland Lake Gold Ltd. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 11, 2020. The new note on the price target was released on May 29, 2020, representing the official price target for Kirkland Lake Gold Ltd. stock. Previously, the target price had yet another raise to $42, while BofA/Merrill analysts kept a Buy rating on KL stock.

The Average True Range (ATR) for Kirkland Lake Gold Ltd. is set at 1.61, with the Price to Sales ratio for KL stock in the period of the last 12 months amounting to 5.12. The Price to Book ratio for the last quarter was 2.27.

KL Stock Performance Analysis:

Kirkland Lake Gold Ltd. [KL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.12. With this latest performance, KL shares dropped by -15.06% in over the last four-week period, additionally plugging by 4.92% over the last 6 months – not to mention a drop of -15.95% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for KL stock in for the last two-week period is set at 30.72, with the RSI for the last a single of trading hit 25.41, and the three-weeks RSI is set at 34.38 for Kirkland Lake Gold Ltd. [KL]. The present Moving Average for the last 50 days of trading for this stock 48.21, while it was recorded at 43.57 for the last single week of trading, and 42.67 for the last 200 days.

Insight into Kirkland Lake Gold Ltd. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Kirkland Lake Gold Ltd. [KL] shares currently have an operating margin of +58.89 and a Gross Margin at +62.27. Kirkland Lake Gold Ltd.’s Net Margin is presently recorded at +40.59.

Return on Total Capital for KL is now 52.21, given the latest momentum, and Return on Invested Capital for the company is 36.24. Return on Equity for this stock inclined to 36.42, with Return on Assets sitting at 26.30. When it comes to the capital structure of this company, Kirkland Lake Gold Ltd. [KL] has a Total Debt to Total Equity ratio set at 0.84. Additionally, KL Total Debt to Total Capital is recorded at 0.84, with Total Debt to Total Assets ending up at 0.60. Long-Term Debt to Equity for the company is recorded at 0.28, with the Long-Term Debt to Total Capital now at 0.28.

Reflecting on the efficiency of the workforce at the company, Kirkland Lake Gold Ltd. [KL] managed to generate an average of $287,715 per employee. Receivables Turnover for the company is 54.97 with a Total Asset Turnover recorded at a value of 0.65.

Kirkland Lake Gold Ltd. [KL] Insider Position Details

There are presently around $5,667 million, or 66.87% of KL stock, in the hands of institutional investors. The top three institutional holders of KL stocks are: VAN ECK ASSOCIATES CORP with ownership of 19,340,679, which is approximately 0.375% of the company’s market cap and around 3.96% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 11,285,212 shares of the stock with an approximate value of $462.02 million in KL stocks shares; and ROYAL BANK OF CANADA, currently with $404.34 million in KL stock with ownership of nearly -0.226% of the company’s market capitalization.

Positions in Kirkland Lake Gold Ltd. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 172 institutional holders increased their position in Kirkland Lake Gold Ltd. [NYSE:KL] by around 12,019,609 shares. Additionally, 146 investors decreased positions by around 15,387,979 shares, while 39 investors held positions by with 111,021,411 shares. The mentioned changes placed institutional holdings at 138,428,999 shares, according to the latest SEC report filing. KL stock had 51 new institutional investments in for a total of 5,031,874 shares, while 37 institutional investors sold positions of 3,157,196 shares during the same period.

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