Royal Gold (NASDAQ:RGLD) Reaches New 12-Month High – Should You Buy?

Royal Gold, Inc. (NASDAQ:RGLD) (TSE:RGL) shares hit a new 52-week high during trading on Friday . The stock traded as high as $235.80 and last traded at $233.50, with a volume of 2692 shares changing hands. The stock had previously closed at $233.11.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. TD Cowen boosted their target price on Royal Gold from $261.00 to $263.00 and gave the stock a “buy” rating in a research note on Tuesday, November 18th. Jefferies Financial Group reissued a “buy” rating and issued a $270.00 price target on shares of Royal Gold in a report on Sunday, December 7th. Raymond James Financial set a $264.00 price target on Royal Gold in a research note on Thursday, November 6th. Scotiabank reaffirmed an “outperform” rating on shares of Royal Gold in a research report on Thursday, October 23rd. Finally, CIBC lifted their target price on shares of Royal Gold from $225.00 to $250.00 and gave the stock a “neutral” rating in a research note on Friday, October 10th. Eight equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $234.60.

Royal Gold Stock Performance

The firm has a 50 day moving average price of $197.22 and a 200-day moving average price of $184.54. The company has a quick ratio of 2.68, a current ratio of 2.89 and a debt-to-equity ratio of 0.23. The stock has a market capitalization of $19.69 billion, a PE ratio of 32.05, a PEG ratio of 0.89 and a beta of 0.48.

Royal Gold (NASDAQ:RGLD) (TSE:RGL) last announced its quarterly earnings results on Wednesday, November 5th. The basic materials company reported $2.06 earnings per share for the quarter, missing analysts’ consensus estimates of $2.30 by ($0.24). Royal Gold had a net margin of 55.99% and a return on equity of 14.14%. The company had revenue of $250.23 million for the quarter, compared to analyst estimates of $275.11 million. During the same quarter in the prior year, the business earned $1.47 earnings per share. Royal Gold’s revenue was up 30.1% on a year-over-year basis. Research analysts expect that Royal Gold, Inc. will post 6.2 EPS for the current fiscal year.

Royal Gold Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 16th. Shareholders of record on Friday, January 2nd will be given a $0.475 dividend. The ex-dividend date of this dividend is Friday, January 2nd. This is a positive change from Royal Gold’s previous quarterly dividend of $0.45. This represents a $1.90 dividend on an annualized basis and a yield of 0.8%. Royal Gold’s dividend payout ratio is presently 24.73%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. WPG Advisers LLC purchased a new stake in Royal Gold during the first quarter worth about $27,000. Vermillion & White Wealth Management Group LLC acquired a new stake in Royal Gold during the 3rd quarter worth approximately $29,000. Cullen Frost Bankers Inc. boosted its position in Royal Gold by 548.1% in the 2nd quarter. Cullen Frost Bankers Inc. now owns 175 shares of the basic materials company’s stock valued at $31,000 after buying an additional 148 shares during the period. Sunbelt Securities Inc. grew its stake in shares of Royal Gold by 8,400.0% in the third quarter. Sunbelt Securities Inc. now owns 170 shares of the basic materials company’s stock worth $34,000 after acquiring an additional 168 shares in the last quarter. Finally, Blue Trust Inc. grew its stake in shares of Royal Gold by 56.8% in the second quarter. Blue Trust Inc. now owns 196 shares of the basic materials company’s stock worth $35,000 after acquiring an additional 71 shares in the last quarter. 83.65% of the stock is currently owned by hedge funds and other institutional investors.

Royal Gold Company Profile

Royal Gold, Inc, headquartered in Denver, Colorado, is a leading precious metals streaming and royalty company. Through its business model, Royal Gold provides upfront financing to mining operators in exchange for the right to purchase a percentage of future metal production at predetermined prices. This structure allows the company to participate in production upside while minimizing exposure to the operating and capital-intensive aspects of mine ownership.

The company’s portfolio encompasses interests in over 200 streams and royalties on projects across North America, South America, Europe, Africa and Australia.