Royal Gold (NASDAQ:RGLD) Sets New 1-Year High – Should You Buy?

Royal Gold, Inc. (NASDAQ:RGLD) (TSE:RGL) shares hit a new 52-week high on Monday . The company traded as high as $253.10 and last traded at $251.83, with a volume of 143973 shares trading hands. The stock had previously closed at $245.20.

Wall Street Analysts Forecast Growth

Several brokerages have commented on RGLD. Zacks Research lowered shares of Royal Gold from a “strong-buy” rating to a “hold” rating in a report on Friday, December 19th. CIBC increased their target price on Royal Gold from $225.00 to $250.00 and gave the stock a “neutral” rating in a research report on Friday, October 10th. Wall Street Zen cut Royal Gold from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. BMO Capital Markets set a $240.00 price target on Royal Gold and gave the company an “outperform” rating in a research report on Tuesday, October 21st. Finally, Raymond James Financial set a $264.00 price target on Royal Gold in a research note on Thursday, November 6th. Eight investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Royal Gold has an average rating of “Moderate Buy” and a consensus target price of $234.60.

Royal Gold Stock Up 2.9%

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 company’s fifty day moving average price is $207.33 and its 200-day moving average price is $188.31. The stock has a market capitalization of $21.28 billion, a PE ratio of 34.67, a price-to-earnings-growth ratio of 0.75 and a beta of 0.49.

Royal Gold (NASDAQ:RGLD) (TSE:RGL) last posted its quarterly earnings data 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). The company had revenue of $250.23 million for the quarter, compared to the consensus estimate of $275.11 million. Royal Gold had a net margin of 55.99% and a return on equity of 14.14%. The firm’s quarterly revenue was up 30.1% on a year-over-year basis. During the same period last year, the business earned $1.47 EPS. Analysts forecast that Royal Gold, Inc. will post 6.2 earnings per share for the current year.

Royal Gold Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 16th. Stockholders of record on Friday, January 2nd will be issued a dividend of $0.475 per share. The ex-dividend date is Friday, January 2nd. This is a boost from Royal Gold’s previous quarterly dividend of $0.45. This represents a $1.90 annualized dividend and a dividend yield of 0.8%. Royal Gold’s dividend payout ratio is 26.10%.

Institutional Trading of Royal Gold

Several institutional investors have recently bought and sold shares of the company. SG Americas Securities LLC raised its holdings in Royal Gold by 52.8% in the fourth quarter. SG Americas Securities LLC now owns 17,671 shares of the basic materials company’s stock worth $3,928,000 after buying an additional 6,109 shares during the last quarter. Wedmont Private Capital bought a new stake in shares of Royal Gold during the fourth quarter valued at approximately $275,000. MassMutual Private Wealth & Trust FSB increased its position in shares of Royal Gold by 329.0% during the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 948 shares of the basic materials company’s stock valued at $211,000 after acquiring an additional 727 shares in the last quarter. Aventura Private Wealth LLC purchased a new position in Royal Gold in the 4th quarter worth approximately $54,000. Finally, Everhart Financial Group Inc. lifted its position in Royal Gold by 6.2% in the 4th quarter. Everhart Financial Group Inc. now owns 3,386 shares of the basic materials company’s stock valued at $753,000 after acquiring an additional 197 shares in the last quarter. 83.65% of the stock is owned by hedge funds and other institutional investors.

About Royal Gold

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.