Traders Buy High Volume of New Gold Call Options (NYSE:NGD)

New Gold Inc. (NYSE:NGD) was the recipient of unusually large options trading activity on Wednesday. Stock investors purchased 10,911 call options on the stock. This represents an increase of approximately 151% compared to the average volume of 4,345 call options.

Institutional Trading of New Gold

Several institutional investors and hedge funds have recently added to or reduced their stakes in NGD. Gunderson Capital Management Inc. purchased a new stake in shares of New Gold during the 1st quarter worth approximately $138,000. Wellington Management Group LLP purchased a new stake in shares of New Gold in the 4th quarter worth $2,830,000. PKO Investment Management Joint Stock Co bought a new stake in shares of New Gold in the 4th quarter valued at about $874,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of New Gold by 0.8% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 910,656 shares of the company’s stock valued at $2,258,000 after acquiring an additional 7,367 shares during the period. Finally, Wexford Capital LP bought a new stake in shares of New Gold in the 4th quarter valued at about $310,000. Institutional investors own 42.82% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on NGD. Raymond James set a $4.00 price objective on shares of New Gold and gave the company a “market perform” rating in a research report on Friday, April 4th. National Bankshares restated an “outperform” rating on shares of New Gold in a report on Wednesday, April 2nd. Bank of America raised New Gold from an “underperform” rating to a “buy” rating and raised their price objective for the company from $2.60 to $3.90 in a research report on Wednesday, March 26th. CIBC reduced their price target on shares of New Gold from $3.60 to $3.40 and set an “outperform” rating for the company in a research report on Thursday, February 27th. Finally, National Bank Financial raised New Gold to a “strong-buy” rating in a research report on Friday, March 21st. Two investment analysts have rated the stock with a hold rating, seven have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $3.78.

New Gold Price Performance

Shares of NYSE:NGD opened at $3.24 on Thursday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.39 and a quick ratio of 0.84. The firm’s 50 day simple moving average is $3.09 and its two-hundred day simple moving average is $2.88. The company has a market capitalization of $2.56 billion, a P/E ratio of 24.92 and a beta of 0.93. New Gold has a 1-year low of $1.66 and a 1-year high of $3.78.

About New Gold

New Gold Inc, an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia.