StockNews.com Adjusts Rating for New Gold (NGD) to Hold Amidst Mixed Analyst Views

Investment analysis firm StockNews.com has recently adjusted its rating for mining company New Gold, moving it from a 'buy' to a 'hold' position. This change reflects a broader set of mixed reviews from various research analysts regarding New Gold's stock performance and potential.

Analyst Opinions on New Gold's Performance

New Gold NGD has received varied reviews from financial analysts. BMO Capital Markets previously raised their price target for NGD from $2.00 to $2.25, assigning an 'outperform' rating. In a different review, TD Securities increased their price target modestly from $1.00 to $1.05 while maintaining a 'reduce' rating. TheStreet provided an improved outlook for NGD, upgrading from a 'd' rating to a 'c-', suggesting a cautious but slightly more optimistic perspective on the company's stock.

Contrastingly, CSFB adjusted their price objective lower, from $1.20 to $1.15, and gave NGD a 'neutral' stance. Collectively, these analyst ratings culminate in an aggregate 'Hold' consensus for New Gold, with a mean target price sitting at around $1.55, indicative of the mixed expectations surrounding the stock's future movement.

New Gold Stock Overview

The shares of NGD commenced trading at $1.14 on a day noted for the firm's ranking shift. New Gold claims a market cap of approximately $780.34 million and exhibits a negative price-to-earnings ratio at -16.28. Its price-to-earnings-growth ratio stands at 0.36, alongside a beta of 1.58, which signifies notable volatility in its stock price compared to the market.

NGD has reported a 52-week low and high of $0.82 and $1.48, respectively. It currently operates with a current ratio of 1.63 and a quick ratio of 1.00, hinting at its ability to cover short-term liabilities. Its debt-to-equity ratio is found at 0.45. While New Gold's financial fundamentals present a complex picture, its stock has been hovering around a 50-day simple moving average of $1.24.

Earnings and Revenue Insights for New Gold

Speaking on its earnings, NGD announced quarterly results that aligned with analysts' expectations, posting earnings per share (EPS) of $0.03. The basic materials company reported revenues amounting to approximately $201.30 million for the quarter. Another noteworthy metric is its return on equity, which has been positive at 5.19%, notwithstanding a negative net margin of 7.20%. As for forecasts, analysts are predicting that New Gold is set to achieve an EPS of $0.06 for the current fiscal year.

Institutional Interests in New Gold

Institutional investors have shown activity in terms of adjustments to their holding in New Gold. Citigroup Inc. C, for instance, has notably increased its investment in NGD, boosting its holdings by 127.1% during the first quarter. Following the acquisition, Citi now holds 22,707 shares valued at around $41,000. This move by prominent financial groups underpins the strategic interest and varying outlooks on NGD's potential.

About New Gold

New Gold Inc., the principal entity in question, is an intermediate gold mining company focused on the exploration, development, and operation of mineral properties. The company's primary attention is on gold, silver, and copper deposits, with key operating properties in Canada and Mexico. These locations include the 100% owned Rainy River and New Afton mines in Canada and the Cerro San Pedro mine in Mexico.

StockNews, NewGold, Hold