CIBC slashes price target on New Gold Inc. [NGD] – find out why.

New Gold Inc. [AMEX: NGD] plunged by -$0.05 during the normal trading session on Thursday and reaching a high of $1.84 during the day while it closed the day at $1.75. The company report on February 10, 2021 that New Gold Provides 2021 Operational Estimates for the Rainy River Mine and Updated Mineral Reserves and Mineral Resources.

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February 10, 2021 – New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) provides annual operational outlook for the Rainy River Mine and updated Mineral Reserves and Mineral Resources as of December 31, 2020. Annual operational estimates for the New Afton Mine will be released at a later date. All amounts are in U.S. dollars unless otherwise indicated.

Following the tragic underground mud-rush event at the New Afton Mine that occurred on February 2, 2021, the release of annual operational estimates for the New Afton Mine will be slightly delayed allowing the Company sufficient time to advance a more fulsome analysis and consider the potential impact on our 2021 production plan as additional information from our investigation becomes available. As noted in the press release dated February 8, 2021, the mine has restarted some underground activities and is currently operating at approximately 3,000 to 5,000 tonnes per day. The mill is currently processing ore from the live pile, which contains approximately 100,000 tonnes at 0.65-0.75% copper and 0.40-0.50 grams per tonne gold. The intermediate-grade surface stockpile contains approximately 1.4 million tonnes at 0.35-0.45% copper and 0.20-0.30 grams per tonne gold.

New Gold Inc. stock has also gained 1.74% of its value over the past 7 days. However, NGD stock has declined by -10.26% in the 3 months of the year. Over the past six months meanwhile, it has gained 20.69% and lost -20.09% year-on date.

The market cap for NGD stock reached $1.11 billion, with 676.00 million shares outstanding and 674.69 million shares in the current float. Compared to the average trading volume of 7.58M shares, NGD reached a trading volume of 5579700 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about New Gold Inc. [NGD]:

CIBC have made an estimate for New Gold Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on February 03, 2021. The new note on the price target was released on September 16, 2020, representing the official price target for New Gold Inc. stock.

The Average True Range (ATR) for New Gold Inc. is set at 0.13, with the Price to Sales ratio for NGD stock in the period of the last 12 months amounting to 1.90. The Price to Book ratio for the last quarter was 1.40, with the Price to Cash per share for the same quarter was set at 0.66.

NGD stock trade performance evaluation

New Gold Inc. [NGD] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.74. With this latest performance, NGD shares dropped by -15.46% in over the last four-week period, additionally plugging by 20.69% over the last 6 months – not to mention a rise of 105.28% 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 NGD stock in for the last two-week period is set at 39.56, with the RSI for the last a single of trading hit 37.31, and the three-weeks RSI is set at 41.58 for New Gold Inc. [NGD]. The present Moving Average for the last 50 days of trading for this stock 2.0562, while it was recorded at 1.8180 for the last single week of trading, and 1.6915 for the last 200 days.

New Gold Inc. [NGD]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and New Gold Inc. [NGD] shares currently have an operating margin of -1.14 and a Gross Margin at +1.74. New Gold Inc.’s Net Margin is presently recorded at -11.61.

Return on Total Capital for NGD is now -0.42, given the latest momentum, and Return on Invested Capital for the company is -4.26. Return on Equity for this stock declined to -7.63, with Return on Assets sitting at -3.39. When it comes to the capital structure of this company, New Gold Inc. [NGD] has a Total Debt to Total Equity ratio set at 77.72. Additionally, NGD Total Debt to Total Capital is recorded at 43.73, with Total Debt to Total Assets ending up at 34.61. Long-Term Debt to Equity for the company is recorded at 76.81, with the Long-Term Debt to Total Capital now at 43.22.

Reflecting on the efficiency of the workforce at the company, New Gold Inc. [NGD] managed to generate an average of -$72,945 per employee. Receivables Turnover for the company is 18.36 with a Total Asset Turnover recorded at a value of 0.29.New Gold Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.60 and a Current Ratio set at 3.10.

Earnings per share (EPS) analysis for New Gold Inc. [NGD] stock

With the latest financial reports released by the company, New Gold Inc. posted 0.02/share EPS, while the average EPS was predicted by analysts to be reported at 0.01/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 100.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NGD. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for New Gold Inc. go to 5.00%.

New Gold Inc. [NGD]: Insider Ownership positions

There are presently around $412 million, or 55.10% of NGD stock, in the hands of institutional investors. The top three institutional holders of NGD stocks are: VAN ECK ASSOCIATES CORP with ownership of 73,816,881, which is approximately 3.563% of the company’s market cap and around 3.60% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 19,973,374 shares of the stock with an approximate value of $34.95 million in NGD stocks shares; and CONNOR, CLARK & LUNN INVESTMENT MANAGEMENT LTD., currently with $24.87 million in NGD stock with ownership of nearly 3.202% of the company’s market capitalization.

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Positions in New Gold Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 65 institutional holders increased their position in New Gold Inc. [AMEX:NGD] by around 43,746,227 shares. Additionally, 56 investors decreased positions by around 40,912,667 shares, while 34 investors held positions by with 150,779,883 shares. The mentioned changes placed institutional holdings at 235,438,777 shares, according to the latest SEC report filing. NGD stock had 24 new institutional investments in for a total of 6,175,451 shares, while 11 institutional investors sold positions of 1,217,657 shares during the same period.

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