Stock Traders Purchase Large Volume of Barrick Gold Call Options (NYSE:GOLD)

Barrick Gold Corporation (NYSE:GOLD - Get Free Report) (TSE:ABX) experienced notable activity in its options trading on Thursday, with stock investors buying up an impressive 66,516 call options. This figure reflects a significant increase of approximately 37% when compared to the average daily volume of 48,697 call options.

Barrick Gold Stock Performance

On the same day, Barrick Gold shares declined by $0.48, settling at $20.32. The trading volume for the day was recorded at 29,505,639 shares, surpassing the usual trading volume of 21,093,443 shares. With a market capitalization of $35.62 billion, the stock has a price-to-earnings (P/E) ratio of 24.74, a price-to-earnings-growth (PEG) ratio of 0.47, and a beta value of 0.55. Over the past year, Barrick Gold's shares have reached a low of $13.76 and a high of $21.35. The company's debt-to-equity ratio stands at 0.15, while its quick ratio is 2.31 and current ratio is 3.01. Currently, the 50-day simple moving average is $20.16, and the 200-day simple moving average is $18.30.

Barrick Gold Earnings Announcement

Barrick Gold recently released its quarterly earnings results. For the quarter ending August 12, the company reported earnings per share (EPS) of $0.32, exceeding the analysts' expectations of $0.27 by $0.05. The revenue for the quarter was $3.16 billion, which also surpassed the anticipated revenue of $3.13 billion. Additionally, the return on equity for Barrick Gold was 5.53%, and its net margin was recorded at 12.78%. This revenue represents an 11.6% increase compared to the same quarter from the previous year, during which the firm earned $0.19 per share. Analysts forecast that Barrick Gold will achieve an EPS of 1.27 for the current year.

Barrick Gold Dividend Announcement

In addition to its strong earnings, Barrick Gold announced a quarterly dividend that was distributed on September 16. Shareholders who were on record as of August 30 received a dividend payout of $0.10 per share. The ex-dividend date was noted as August 30 as well. The annualized dividend totals $0.40, resulting in a yield of 1.97%. Currently, Barrick Gold's dividend payout ratio sits at 48.78%.

Institutional Investors' Activity

Institutional investors and hedge funds have been actively buying and selling shares of Barrick Gold. For instance, First Eagle Investment Management LLC raised its stake in the company by 31.6% in the first quarter, now holding 58,820,050 shares valued at approximately $978,766,000. Meanwhile, EdgePoint Investment Group Inc. boosted its holdings in Barrick Gold by 38.8% during the same period, acquiring an additional 5,080,510 shares. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp made a significant move in the second quarter, increasing its position by 4,713.3%, obtaining 4,144,456 shares valued at around $69,141,000. Other firms, such as Letko Brosseau & Associates Inc. and Equity Investment Corp., also reported major acquisitions, contributing to the overall institutional ownership of 62.85% in Barrick Gold stock.

Wall Street Analyst Ratings

A variety of research firms have provided insights into Barrick Gold's performance. Several notable upgrades include Argus, which changed Barrick Gold's rating from "hold" to "buy" and set a price target of $24.00. Furthermore, UBS Group increased their target price from $22.00 to $23.00, maintaining a "buy" rating. CIBC also raised its target price from $23.00 to $27.00 and marked Barrick Gold as an "outperformer." Other companies, including Scotiabank and Royal Bank of Canada, have similarly raised their price targets for the stock. Presently, two analysts rate the stock as a hold, while nine analysts recommend buying. According to consensus estimates, the average target price for Barrick Gold is set at $23.60, indicating a "Moderate Buy" rating.

Barrick Gold Company Overview

Barrick Gold Corporation stands as a prominent player in the gold and copper production sector. The company trades on both the New York Stock Exchange under the symbol GOLD and on the Toronto Stock Exchange under the symbol ABX. Notably, in January 2019, Barrick merged with Randgold Resources, further solidifying its place in the industry.

Barrick, Gold, Options