For New Gold Inc. [NGD], Analyst sees a drop to $1.50. What next?



New Gold Inc. [AMEX: NGD] gained 2.00% or 0.03 points to close at $1.53 with a heavy trading volume of 8752924 shares. The company report on December 22, 2021 that New Gold Announces Closing of Blackwater Gold Stream for US$300 Million.

New Gold Inc. (“New Gold” or the “Company”) (TSX: NGD) and (NYSE American: NGD) today reports that it has closed the previously announced sale of the gold stream held on the Blackwater Project (“Blackwater”) located in British Columbia, Canada to Wheaton Precious Metals Corp. for US$300 million. Blackwater is wholly-owned by Artemis Gold Inc. (“Artemis”), with New Gold having retained the gold stream as partial consideration for the divestiture of Blackwater to Artemis on August 21, 2020.

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About New Gold New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The Company also holds a 5% equity stake in Artemis Gold Inc. and other Canadian-focused investments. New Gold’s vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment and social responsibility. For further information on the Company, visit

It opened the trading session at $1.47, the shares rose to $1.53 and dropped to $1.45, the range by which the price of stock traded the whole day. The daily chart for NGD points out that the company has recorded -11.05% loss over the past six months. However, it is still -51.49% lower than its most recent low trading price.

If we look at the average trading volume of 8.92M shares, NGD reached to a volume of 8752924 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about New Gold Inc. [NGD]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NGD shares is $1.84 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NGD stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

RBC Capital Mkts have made an estimate for New Gold Inc. shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on September 08, 2021. The new note on the price target was released on August 11, 2021, 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 1.36. The Price to Book ratio for the last quarter was 1.25, with the Price to Cash per share for the same quarter was set at 0.31. Price to Free Cash Flow for NGD in the course of the last twelve months was 55.97 with Quick ratio for the last quarter at 1.70.

Trading performance analysis for NGD stock

New Gold Inc. [NGD] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.08. With this latest performance, NGD shares gained by 5.52% in over the last four-week period, additionally sinking by -11.05% over the last 6 months – not to mention a drop of -25.73% 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 55.78, with the RSI for the last a single of trading hit 58.78, and the three-weeks RSI is set at 54.27 for New Gold Inc. [NGD]. The present Moving Average for the last 50 days of trading for this stock 1.4972, while it was recorded at 1.4960 for the last single week of trading, and 1.5628 for the last 200 days.

New Gold Inc. [NGD]: A deeper dive into fundamental analysis

New Gold Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 2.40.

New Gold Inc. [NGD]: An earnings per share (EPS) analysis

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 8.65%.

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An analysis of insider ownership at New Gold Inc. [NGD]

There are presently around $336 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 70,303,748, which is approximately -2.471% of the company’s market cap and around 3.60% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 16,583,280 shares of the stock with an approximate value of $25.37 million in NGD stocks shares; and CONNOR, CLARK & LUNN INVESTMENT MANAGEMENT LTD., currently with $19.72 million in NGD stock with ownership of nearly -3.153% of the company’s market capitalization.

58 institutional holders increased their position in New Gold Inc. [AMEX:NGD] by around 13,539,950 shares. Additionally, 72 investors decreased positions by around 25,549,726 shares, while 56 investors held positions by with 180,505,375 shares. The mentioned changes placed institutional holdings at 219,595,051 shares, according to the latest SEC report filing. NGD stock had 26 new institutional investments in for a total of 7,744,309 shares, while 16 institutional investors sold positions of 5,514,895 shares during the same period.