Zacks Investment Research lowered shares of Royal Gold (NASDAQ:RGLD) (TSE:RGL) from a hold rating to a sell rating in a research report released on Monday morning.

According to Zacks, “Royal Gold’s performance will bear the brunt of inadequate water supplies and lower processing rates at Mount Milligan, resulting in deferred shipments and deliveries of gold and copper. Further, if the mine will not receive regulatory approvals to access  water  sources, the throughput  would  be  reduced. It is also exposed to a highly volatile gold price environment. Royal Gold’s stretched valuation is also a concern.”

RGLD has been the subject of a number of other research reports. BidaskClub raised shares of Royal Gold from a sell rating to a hold rating in a research report on Wednesday, June 27th. ValuEngine cut shares of Royal Gold from a hold rating to a sell rating in a research report on Friday, August 17th. Scotiabank set a $88.00 target price on shares of Royal Gold and gave the company a hold rating in a research report on Thursday, August 9th. Canaccord Genuity set a $102.00 target price on shares of Royal Gold and gave the company a buy rating in a research report on Tuesday, July 24th. Finally, Desjardins set a $98.00 target price on shares of Royal Gold and gave the company a buy rating in a research report on Saturday, July 28th. Three analysts have rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the stock. Royal Gold has a consensus rating of Hold and a consensus target price of $98.86.

Shares of Royal Gold stock opened at $78.60 on Monday. The stock has a market capitalization of $5.10 billion, a PE ratio of 44.66, a price-to-earnings-growth ratio of 4.01 and a beta of 0.35. Royal Gold has a 52-week low of $71.91 and a 52-week high of $98.53. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.45 and a quick ratio of 2.27.

Royal Gold (NASDAQ:RGLD) (TSE:RGL) last announced its earnings results on Wednesday, August 8th. The basic materials company reported $0.43 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.43. The company had revenue of $116.20 million during the quarter, compared to analysts’ expectations of $115.57 million. Royal Gold had a negative net margin of 24.65% and a positive return on equity of 5.17%. Royal Gold’s quarterly revenue was up 6.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.31 earnings per share. analysts anticipate that Royal Gold will post 1.94 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 19th. Investors of record on Friday, October 5th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, October 4th. This represents a $1.00 annualized dividend and a yield of 1.27%. Royal Gold’s dividend payout ratio is 56.82%.

In related news, CFO William Holmes Heissenbuttel sold 4,091 shares of the company’s stock in a transaction dated Friday, June 29th. The shares were sold at an average price of $93.14, for a total transaction of $381,035.74. Following the completion of the sale, the chief financial officer now owns 69,581 shares of the company’s stock, valued at $6,480,774.34. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Tony A. Jensen sold 20,000 shares of the company’s stock in a transaction dated Tuesday, July 3rd. The stock was sold at an average price of $95.11, for a total transaction of $1,902,200.00. The disclosure for this sale can be found here. Insiders have sold 30,451 shares of company stock valued at $2,867,529 in the last ninety days. 1.12% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of RGLD. Gables Capital Management Inc. acquired a new position in Royal Gold during the first quarter worth about $107,000. Northwestern Mutual Wealth Management Co. acquired a new position in Royal Gold during the second quarter worth about $151,000. Pendal Group Ltd raised its stake in Royal Gold by 100.3% during the second quarter. Pendal Group Ltd now owns 2,069 shares of the basic materials company’s stock worth $192,000 after acquiring an additional 1,036 shares in the last quarter. Advisor Partners LLC acquired a new position in Royal Gold during the second quarter worth about $219,000. Finally, CIBC Asset Management Inc acquired a new position in Royal Gold during the second quarter worth about $220,000. 74.88% of the stock is owned by institutional investors and hedge funds.

Royal Gold Company Profile

Royal Gold, Inc engages in the acquisition and management of metal streams, royalties, and similar interests. It operates through the Acquisition and Management of Stream Interests and Acquisition and Management of Royalty Interests segments. The Acquisition and Management of Stream Interests segment involves in the purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals.

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Analyst Recommendations for Royal Gold (NASDAQ:RGLD)

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