TRX Gold Corporation [TRX] moved up 0.25: Why It’s Important

TRX Gold Corporation [AMEX: TRX] gained 0.25% on the last trading session, reaching $0.48 price per share at the time. The company report on September 1, 2022 that TRX Gold Announces US$5 Million Prepaid Gold Purchase Agreement with OCIM Metals & Mining SA.

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TRX Gold Corporation (TSX:TNX) (NYSE American:TRX) (the “Company” or “TRX Gold”) is pleased to announce that its operating subsidiary, Buckreef Gold Corporation Limited (“Buckreef Gold”), has entered into a pre-paid gold purchase agreement with a contract price totaling US$5 million with OCIM Metals & Mining SA. The total contract price can be made available to Buckreef Gold in tranches with a $2.5 million upfront tranche and further tranches to be drawn over the next 18 months at Buckreef Gold’s option. Tranche 1 in this non-dilutive financing includes a 6-month grace period and a repayment period over the following 12 months as quarterly deliveries of a pre-determined quantity of gold. The actual quantity will be determined by applying a discount to prevailing gold spot prices on the date funds are transferred to Buckreef Gold.

The proceeds from this financing will enable Buckreef Gold to opportunistically make productivity enhancing purchases, for example, acquiring mining equipment to replace higher cost rental equipment which will help improve mining and processing operating costs over time. Additionally, it provides the flexibility to expedite exploration and sulphide development programs at Buckreef Gold.

TRX Gold Corporation represents 274.36 million in outstanding shares, while the company has a total market value of $143.54 million with the latest information. TRX stock price has been found in the range of $0.47 to $0.48.

If compared to the average trading volume of 659.56K shares, TRX reached a trading volume of 278750 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 TRX Gold Corporation [TRX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TRX shares is $1.39 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TRX stock is a recommendation set at 2.00. 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.

Alliance Global Partners have made an estimate for TRX Gold Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 16, 2021.

The Average True Range (ATR) for TRX Gold Corporation is set at 0.03, with the Price to Sales ratio for TRX stock in the period of the last 12 months amounting to 15.77. The Price to Book ratio for the last quarter was 2.52, with the Price to Cash per share for the same quarter was set at 0.04.

Trading performance analysis for TRX stock

TRX Gold Corporation [TRX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.39. With this latest performance, TRX shares dropped by -0.66% in over the last four-week period, additionally plugging by 29.69% over the last 6 months – not to mention a rise of 14.00% 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 TRX stock in for the last two-week period is set at 50.91, with the RSI for the last a single of trading hit 45.49, and the three-weeks RSI is set at 54.16 for TRX Gold Corporation [TRX]. The present Moving Average for the last 50 days of trading for this stock 0.4338, while it was recorded at 0.4846 for the last single week of trading, and 0.3764 for the last 200 days.

TRX Gold Corporation [TRX]: A deeper dive into fundamental analysis

Return on Equity for this stock declined to -9.91, with Return on Assets sitting at -7.53.

TRX Gold Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.40.

An analysis of insider ownership at TRX Gold Corporation [TRX]

There are presently around $1 million, or 0.70% of TRX stock, in the hands of institutional investors. The top three institutional holders of TRX stocks are: GUILD INVESTMENT MANAGEMENT, INC. with ownership of 458,000, which is approximately 9.569% of the company’s market cap and around 2.61% of the total institutional ownership; BANK OF MONTREAL /CAN/, holding 277,500 shares of the stock with an approximate value of $0.13 million in TRX stocks shares; and HIGHTOWER ADVISORS, LLC, currently with $0.12 million in TRX stock with ownership of nearly 0% of the company’s market capitalization.

9 institutional holders increased their position in TRX Gold Corporation [AMEX:TRX] by around 228,513 shares. Additionally, 16 investors decreased positions by around 1,026,228 shares, while 17 investors held positions by with 759,559 shares. The mentioned changes placed institutional holdings at 2,014,300 shares, according to the latest SEC report filing. TRX stock had 3 new institutional investments in for a total of 143,692 shares, while 7 institutional investors sold positions of 214,011 shares during the same period.


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