National Bank Financial slashes price target on Kirkland Lake Gold Ltd. [KL] – find out why.

Kirkland Lake Gold Ltd. [NYSE: KL] closed the trading session at $42.67 on 07/29/21. The day’s price range saw the stock hit a low of $40.78, while the highest price level was $43.05. The company report on July 29, 2021 that Kirkland Lake Gold Reports Record Net Earnings in Q2 2021.

Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) announced the Company’s financial and operating results for the second quarter (“Q2 2021”) and first six months (“YTD 2021”) of 2021. The results included record quarterly net earnings and earnings per share driven by strong operating results and revenue growth, largely reflecting continued outperformance at Fosterville. All three of the Company’s cornerstone assets increased production compared to both the second quarter of 2020 (“Q2 2020”) and the previous quarter (“Q1 2021”). The Company also reported solid earnings growth in YTD 2021 compared to the first six months of 2020 (“YTD 2020”), resulting largely from increased revenue. The Company’s full financial statements and management discussion & analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.kl.gold. All dollar amounts are in U.S. dollars, unless otherwise noted.

Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold commented: “We had an excellent quarter in Q2 2021 highlighted by record earnings, record quarterly production, strong revenue growth and significant increases in both operating and free cash flow. All three of our cornerstone assets increased production during Q2 2021, with Fosterville having a particularly successful quarter based largely on continued grade outperformance. In addition, we benefited from solid unit costs performances at all three operations, resulting in operating cash costs and AISC for the quarter that were better than full-year guidance. Also, during Q2 2021, we continued to generate very encouraging drill results and advanced our many growth and business improvement projects at Detour Lake, all of which are being completed as part of our work to transform Detour Lake into one of the world’s largest and most profitable gold mines. We also continued to achieve excellent progress at Macassa, with the #4 Shaft project remaining ahead of schedule and new drill results continuing to intersect wide, high-grade mineralization outside of existing Mineral Reserves. Our financial strength continued to improve during Q2 2021, with cash increasing to $858.4 million, and we remain committed to returning capital to shareholders, renewing our normal course issuer bid and introducing an automatic share purchase plan. We returned $158.6 million to shareholders during the first half of 2021 and have returned an additional $37.7 million in July through our Q2 2021 dividend payment and by repurchasing 945,000 shares through the NCIB.”.

The stocks have a year to date performance of 3.39 percent and weekly performance of 7.08 percent. The stock has been moved at 10.57 percent over the last six months. The stock has performed 12.05 percent around the most recent 30 days and changed 13.64 percent over the most recent 3-months.

If compared to the average trading volume of 1.56M shares, KL reached to a volume of 2601808 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 Kirkland Lake Gold Ltd. [KL]:

National Bank Financial have made an estimate for Kirkland Lake Gold Ltd. shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on March 17, 2021. The new note on the price target was released on February 10, 2021, representing the official price target for Kirkland Lake Gold Ltd. stock.

The Average True Range (ATR) for Kirkland Lake Gold Ltd. is set at 1.24, with the Price to Sales ratio for KL stock in the period of the last 12 months amounting to 4.64. The Price to Book ratio for the last quarter was 2.22.

KL stock trade performance evaluation

Kirkland Lake Gold Ltd. [KL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.08. With this latest performance, KL shares gained by 12.05% in over the last four-week period, additionally plugging by 10.57% over the last 6 months – not to mention a drop of -15.49% 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 62.21, with the RSI for the last a single of trading hit 68.51, and the three-weeks RSI is set at 58.71 for Kirkland Lake Gold Ltd. [KL]. The present Moving Average for the last 50 days of trading for this stock 41.21, while it was recorded at 40.27 for the last single week of trading, and 40.18 for the last 200 days.

Kirkland Lake Gold Ltd. [KL]: An insightful look at the core 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 +51.94 and a Gross Margin at +56.48. Kirkland Lake Gold Ltd.’s Net Margin is presently recorded at +32.02.

Return on Total Capital for KL is now 38.57, given the latest momentum, and Return on Invested Capital for the company is 23.84. Return on Equity for this stock inclined to 23.92, with Return on Assets sitting at 17.13. 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 0.51. Additionally, KL Total Debt to Total Capital is recorded at 0.51, with Total Debt to Total Assets ending up at 0.37. Long-Term Debt to Equity for the company is recorded at 0.38, with the Long-Term Debt to Total Capital now at 0.38.

Reflecting on the efficiency of the workforce at the company, Kirkland Lake Gold Ltd. [KL] managed to generate an average of $367,112 per employee. Receivables Turnover for the company is 96.20 with a Total Asset Turnover recorded at a value of 0.53.

Kirkland Lake Gold Ltd. [KL]: Insider Ownership positions

There are presently around $5,585 million, or 62.08% 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 16,789,189, which is approximately -20.666% of the company’s market cap and around 4.07% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 11,075,477 shares of the stock with an approximate value of $472.59 million in KL stocks shares; and VANGUARD GROUP INC, currently with $351.72 million in KL stock with ownership of nearly 3.974% of the company’s market capitalization.

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Positions in Kirkland Lake Gold Ltd. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 164 institutional holders increased their position in Kirkland Lake Gold Ltd. [NYSE:KL] by around 14,577,778 shares. Additionally, 140 investors decreased positions by around 16,534,925 shares, while 40 investors held positions by with 99,783,446 shares. The mentioned changes placed institutional holdings at 130,896,149 shares, according to the latest SEC report filing. KL stock had 44 new institutional investments in for a total of 3,294,285 shares, while 49 institutional investors sold positions of 5,010,040 shares during the same period.

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