Royal Gold (NASDAQ:RGLD) Hits New 1-Year High Following Strong Earnings

Royal Gold, Inc. (NASDAQ:RGLD) has achieved a new 52-week high, reaching $155.49 per share on Thursday, following impressive earnings results. The stock saw a closing price of $155.18 after trading 259,349 shares, a notable increase from its previous closing price of $147.19.

Earnings Performance

The company reported earnings of $1.63 per share for the quarter, which exceeded analysts' expectations of $1.46 by $0.17. Additionally, Royal Gold has demonstrated a solid return on equity of 10.18% and a strong net margin of 42.93%, indicating effective management and profitability.

Dividend Increase

Investors received positive news as Royal Gold announced an increase in its quarterly dividend. The new dividend, paid on January 17, was set at $0.45, up from $0.40. This annualizes to $1.80, offering a yield of 1.16%. The ex-dividend date was established as January 3, and the company's dividend payout ratio stands at 41.28%.

Analyst Predictions

Several analysts have reacted positively to the earnings release, with TD Securities rising their price target for Royal Gold from $181.00 to $185.00, maintaining a "buy" rating. Raymond James followed suit, upping their price target from $184.00 to $186.00 with an "outperform" rating. Jefferies Financial Group also upgraded their position from "hold" to "buy," adjusting their price target from $154.00 to $178.00. Overall, while one analyst rated the stock as a sell, four gave it a hold rating and six assigned a buy rating, indicating a consensus rating of "Hold" with an average price target of $168.86 based on data from MarketBeat.

Insider Activity

In a recent development, senior vice president Daniel Breeze sold 549 shares of Royal Gold on December 9 at an average price of $150.00, totaling $82,350. This sale reduced his ownership stake to 16,293 shares, valued at approximately $2.44 million. Insiders currently hold 0.52% of the company's stock.

Institutional Movements

Recent trading revealed that several hedge funds have adjusted their stakes in Royal Gold. Exchange Traded Concepts LLC made a new investment valued at $25,000 during the fourth quarter. Similarly, Point72 Hong Kong Ltd and Advisors Asset Management Inc. also acquired new positions valued at $36,000 and $38,000 respectively. Notably, Nomura Asset Management Co. Ltd increased its stake by 61.1%, now owning 290 shares worth $41,000. Overall, institutional investors hold 83.65% of Royal Gold's shares.

Stock Performance Summary

Royal Gold's strong stock performance reflects a market capitalization of $10.20 billion, a PE ratio of 35.59, and a P/E/G ratio of 0.87. The stock has shown resilience, with a fifty-day moving average of $139.37 and a two-hundred-day moving average of $141.00.

Company Overview

Royal Gold, Inc. specializes in acquiring and managing precious metal streams, royalties, and interests. The company primarily focuses on gaining stream and royalty interests or financing projects in production, development, or exploration stages, dealing in gold, silver, copper, nickel, zinc, lead, and various other metals.

Royal, Earnings, Stocks