Analyst Update: Barrick Gold Corporation, Randgold Resources Ltd., and Royal Gold, Inc

Analysts adjusted their ratings and price targets on Barrick Gold Corporation (USA) (NYSE:ABX), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), and Royal Gold, Inc (USA) (NASDAQ:RGLD)

by Kirra Fedyszyn

Published on Apr 7, 2016 at 3:25 PM

Analysts are weighing in on gold stocks Barrick Gold Corporation (USA) (NYSE:ABX)Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), and Royal Gold, Inc (USA) (NASDAQ:RGLD). Here's a quick roundup of today's brokerage notes on ABX, GOLD, and RGLD.

  • ABX is just one of many gold stocks getting a boost from Canaccord Genuity today, as the brokerage firm raised its price target on Barrick Gold Corporation to C$22 from C$21.50. The stock has added 4.1% to trade at $14.54, bringing its year-to-date lead to 97% -- with help from the rising price of gold, as well as support from its rising 40-day moving average. Despite this technical strength, sentiment on ABX remains bearishly skewed, with 71% of analysts calling ABX a "hold" or worse. And near-term option traders have been unusually put-heavy, with the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.21 in the 91st percentile of its annual range.
  • GOLD received price-target hikes at Credit Suisse, to 6,700P from 6,400P, and at Dundee Capital, to $105 from $94. These bullish brokerage notes have boosted Randgold Resources Ltd. 2.8% to $92.78. The stock has been consolidating in the $88-$94 range since an early February bull gap, briefly tapping a three-year high at $96.50 in mid-March. But eight of 10 analysts still rate GOLD a "hold" or "strong sell." And at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 0.70 sits higher than 77% of the past year's readings, indicating traders have been picking up bearish bets at an unusually rapid rate during the last 10 weeks.
  • RGLD is up 3.1% at $51.82 after Dundee Capital upped its price target on the stock to $58 from $54, shaking off a price-target cut to $58 from $60 at National Bank Financial last night. Royal Gold, Inc has added 110% since hitting a seven-year low of $24.68 in late January, and both analysts and option traders appear to be in the equity's corner. Two-thirds of the brokerage firms providing coverage call RGDL a "strong buy," without a single "sell" rating on the books. At the ISE, CBOE, and PHLX, traders have bought to open nearly five RGLD calls for each put over the last 50 sessions -- with the resulting ratio of 4.76 in the 82nd percentile of its annual range.
For other stocks in analysts' crosshairs, read Analyst Upgrades: TransEnterix, Inc., Ollie's Bargain Outlet Holdings Inc, and Bed Bath & Beyond Inc. and Analyst Downgrades: Twitter Inc, Verizon Communications Inc., and Apple Inc.

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.