Goldmoney (TSE:XAU) Reaches New 12-Month High - Still a Buy?

Goldmoney Inc. (TSE:XAU - Get Free Report) has achieved a notable milestone by reaching a new 52-week high on Monday. The stock was recorded trading as high as C$10.15 before settling at C$10.02, with a total trading volume of 7,813 shares. The previous closing price was C$10.17, indicating a strong performance in the market.

Goldmoney Stock Performance

Despite reaching new heights, Goldmoney's stock experienced a slight decline of 1.4%. The company holds a market capitalization of C$132.30 million and has a price-to-earnings (PE) ratio of -7.32. Its beta value stands at -0.78, suggesting lower volatility compared to the market. Additionally, Goldmoney has a debt-to-equity ratio of 26.11, a current ratio of 1.85, and an impressive quick ratio of 6.53. Recent trading data shows the 50-day moving average price at C$9.26 and the 200-day moving average price at C$8.30.

Goldmoney Inc. last reported its earnings results on July 31st. The company shared that it achieved earnings per share (EPS) of C$0.51 for the quarter, alongside a revenue of C$27.24 million. However, investors should note that the firm recorded a negative net margin of 27.72% and a negative return on equity of 11.80%. Analysts are currently projecting that Goldmoney will post an EPS of -0.06 for the ongoing fiscal year.

Recent Insider Activity

In a recent development, Director Roy Sebag purchased 10,000 shares of Goldmoney on August 6th. He bought the shares at an average price of C$8.09 each, resulting in a total investment of approximately C$80,920. Notably, company insiders own about 34.39% of the total shares, indicating a significant level of confidence from those within the company.

About Goldmoney

Goldmoney Inc. operates within the precious metals sector, focusing on services related to the sale of precious metals, as well as retailing and lending. The company is segmented into two main areas: Goldmoney.com and Schiff Gold. Goldmoney.com functions as an online platform, offering clients the ability to buy and sell physical precious metals. The platform also provides secure storage options for these assets. Schiff Gold specializes in the retail aspect of precious metals, focusing on the transaction of bars, coins, and wafers, with direct delivery to clients.

Is Goldmoney a Worthy Investment?

As investors consider the prospects of investing significant amounts, it is crucial to evaluate whether Goldmoney is the right choice. Presently, analysts maintain a "hold" rating on the stock, suggesting caution among market experts. In fact, some analysts have highlighted five other stocks that are perceived as more solid investment opportunities compared to Goldmoney.

Before making any financial decisions, potential investors are encouraged to do thorough research and consider the latest market trends. While Goldmoney’s recent high and insider investments are encouraging, it is essential to weigh this with the company’s financial performance and the broader market context.

Goldmoney, Stocks, Investment