New Gold Inc. [NGD] Stock trading around $1.74 per share: What’s Next?

New Gold Inc. [AMEX: NGD] traded at a high on 07/14/21, posting a 1.16 gain after which it closed the day’ session at $1.74. The company report on July 12, 2021 that Angus Gold Commences First Drill Program at Golden Sky Project, Wawa, Ontario.

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Angus Gold Inc. (TSX-V: GUS | OTC: ANGVF) (“Angus” or the “Company”) is pleased to announce the commencement of drilling at its 100%-owned Golden Sky Project (the “Project”) located in Wawa, Ontario. The Project is immediately adjacent to the Eagle River Mine of Wesdome Gold Mines Ltd (“Wesdome”) in Wawa. The 20,000-metre drill program will focus on two target areas within the property: the Dorset Deformation Zone, which is host to a historical gold resource and the BIF Zone, a large area of banded iron formation that has historically returned high-grade gold assays in surface sampling but has seen very little follow-up exploration. Drill targets were generated through a high-power induced polarisation (“IP”) ground geophysical survey completed in the past few months, which were subsequently prioritized by a follow-up surface geochemical program. The key areas to be tested during the first phase of drilling include the historical Dorset Resource, new targets to the east and west of the historical resource and the highly prospective gold anomalies within the BIF Zone.

The Company received the necessary drill permits in June 2021 and subsequently engaged Major Drilling Group International. The 20,000 metres of drilling is expected to be completed over the next 12 to 15 months. The most recent drilling program on the Project was conducted between 2005 – 2007 by Trelawney Resources Inc., which was acquired by IAMGOLD Corporation in 2012.

The results of the trading session contributed to over 3105272 shares changing hands. Over the past one week, the price volatility of New Gold Inc. stands at 5.08% while the volatility over the past one month is 4.84%.

The market cap for NGD stock reached $1.15 billion, with 680.60 million shares outstanding and 679.31 million shares in the current float. Compared to the average trading volume of 5.42M shares, NGD reached a trading volume of 3105272 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 0.09, with the Price to Sales ratio for NGD stock in the period of the last 12 months amounting to 1.73. The Price to Book ratio for the last quarter was 1.41, with the Price to Cash per share for the same quarter was set at 0.29. Price to Free Cash Flow for NGD in the course of the last twelve months was 47.67 with Quick ratio for the last quarter at 1.90.

How has NGD stock performed recently?

New Gold Inc. [NGD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.57. With this latest performance, NGD shares dropped by -20.55% in over the last four-week period, additionally sinking by -15.94% over the last 6 months – not to mention a rise of 32.82% 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 40.08, with the RSI for the last a single of trading hit 39.58, and the three-weeks RSI is set at 42.37 for New Gold Inc. [NGD]. The present Moving Average for the last 50 days of trading for this stock 1.9208, while it was recorded at 1.7260 for the last single week of trading, and 1.9000 for the last 200 days.

New Gold Inc. [NGD]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and New Gold Inc. [NGD] shares currently have an operating margin of +9.55 and a Gross Margin at +12.94. New Gold Inc.’s Net Margin is presently recorded at -12.41.

Return on Total Capital for NGD is now 4.22, given the latest momentum, and Return on Invested Capital for the company is -5.51. Return on Equity for this stock declined to -9.45, with Return on Assets sitting at -3.75. When it comes to the capital structure of this company, New Gold Inc. [NGD] has a Total Debt to Total Equity ratio set at 65.67. Additionally, NGD Total Debt to Total Capital is recorded at 39.64, with Total Debt to Total Assets ending up at 23.03. Long-Term Debt to Equity for the company is recorded at 64.45, with the Long-Term Debt to Total Capital now at 38.90.

Reflecting on the efficiency of the workforce at the company, New Gold Inc. [NGD] managed to generate an average of -$66,896 per employee. Receivables Turnover for the company is 12.25 with a Total Asset Turnover recorded at a value of 0.30.New Gold Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 2.60.

Earnings analysis for New Gold Inc. [NGD]

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%.

Insider trade positions for New Gold Inc. [NGD]

There are presently around $409 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 69,829,354, which is approximately -5.402% of the company’s market cap and around 3.60% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 17,754,208 shares of the stock with an approximate value of $30.89 million in NGD stocks shares; and CONNOR, CLARK & LUNN INVESTMENT MANAGEMENT LTD., currently with $24.13 million in NGD stock with ownership of nearly -3.301% 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 July and at the time of the July reporting period, where 66 institutional holders increased their position in New Gold Inc. [AMEX:NGD] by around 19,937,982 shares. Additionally, 69 investors decreased positions by around 40,897,453 shares, while 42 investors held positions by with 173,973,710 shares. The mentioned changes placed institutional holdings at 234,809,145 shares, according to the latest SEC report filing. NGD stock had 20 new institutional investments in for a total of 3,452,789 shares, while 20 institutional investors sold positions of 10,852,039 shares during the same period.

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