New Gold Inc. [NGD] fell -8.00% so far this year. What now?


New Gold Inc. [AMEX: NGD] gained 2.22% on the last trading session, reaching $1.38 price per share at the time. The company report on June 7, 2022 that Angus Gold Announces Debt Settlement.

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Angus Gold Inc. (TSX-V: GUS) (“Angus” or the “Company”) is pleased to announce that it has entered into an agreement to settle CAD$70,000 of debt owed to Steve Burleton, Angus’ Interim CEO, in consideration for the issuance of 86,420 common shares of the Company at a deemed price of CAD$0.81 per share (the “Debt Settlement”). The debt is payable to Mr. Burleton in respect of consulting fees accruing since April 7, 2021. The closing of the Debt Settlement is expected to occur immediately following approval from TSX Venture Exchange (“TSXV”). The Company expects that the proposed Debt Settlement will assist the Company in preserving its cash for working capital.

Mr. Burleton is an insider of the Company, and accordingly, the issuance of common shares to an insider in connection with the Debt Settlement is considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transaction (“MI 61-101”). The Company is relying on the exemption from the requirement for a formal valuation and minority shareholder approval under MI 61-101 on the basis of the exemptions contained in section 5.5(1)(a) and section 5.7(1)(a) of MI 61-101, as the fair market value of the consideration of the shares to be issued to Mr. Burleton in connection with the Debt Settlement does not exceed 25% of the Company’s market capitalization. The Debt Settlement has been approved by all of the independent directors of the Company.

New Gold Inc. represents 681.30 million in outstanding shares, while the company has a total market value of $968.48 million with the latest information. NGD stock price has been found in the range of $1.31 to $1.38.

If compared to the average trading volume of 5.59M shares, NGD reached a trading volume of 3739682 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 $1.98 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 2.80. 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.

Canaccord Genuity have made an estimate for New Gold Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on January 18, 2022. While these analysts kept the previous recommendation, RBC Capital Mkts dropped their target price from $1.75 to $1.50. The new note on the price target was released on September 08, 2021, representing the official price target for New Gold Inc. stock.

The Average True Range (ATR) for New Gold Inc. is set at 0.08, with the Price to Sales ratio for NGD stock in the period of the last 12 months amounting to 1.28. The Price to Book ratio for the last quarter was 1.01, with the Price to Cash per share for the same quarter was set at 0.70. Price to Free Cash Flow for NGD in the course of the last twelve months was 14.02 with Quick ratio for the last quarter at 3.70.

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 3.76. With this latest performance, NGD shares gained by 10.40% in over the last four-week period, additionally sinking by -7.38% over the last 6 months – not to mention a drop of -32.68% 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 49.04, with the RSI for the last a single of trading hit 52.43, and the three-weeks RSI is set at 47.01 for New Gold Inc. [NGD]. The present Moving Average for the last 50 days of trading for this stock 1.5208, while it was recorded at 1.3840 for the last single week of trading, and 1.5051 for the last 200 days.

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

Operating Margin for any stock indicates how profitable investing would be, and New Gold Inc. [NGD] shares currently have an operating margin of +18.13 and a Gross Margin at +21.19. New Gold Inc.’s Net Margin is presently recorded at +18.78.

Return on Equity for this stock inclined to 15.93, with Return on Assets sitting at 5.88.

New Gold Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.70 and a Current Ratio set at 4.40.

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%.

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

There are presently around $311 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 69,315,986, which is approximately 6.754% of the company’s market cap and around 3.60% of the total institutional ownership; INVESCO LTD., holding 16,612,687 shares of the stock with an approximate value of $22.93 million in NGD stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $22.39 million in NGD stock with ownership of nearly -0.803% of the company’s market capitalization.

Positions in New Gold Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 75 institutional holders increased their position in New Gold Inc. [AMEX:NGD] by around 27,784,626 shares. Additionally, 55 investors decreased positions by around 17,924,925 shares, while 63 investors held positions by with 179,723,492 shares. The mentioned changes placed institutional holdings at 225,433,043 shares, according to the latest SEC report filing. NGD stock had 14 new institutional investments in for a total of 1,727,837 shares, while 24 institutional investors sold positions of 8,075,200 shares during the same period.