New Gold Inc. (NGD) Is A Stock You Should Watch

As of Friday close, New Gold Inc.’s (AMEX:NGD) stock was up $0.08, moving up 6.78 percent to $1.26. The average number of shares traded per day over the past five days has been 5,790,560 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.0900 fall in that time frame. In the last twenty days, the average volume was 5,604,770, while in the previous 50 days, it was 6,484,952.


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Since last month, NGD stock retreated -32.26%. Shares of the company fell to $1.1400 on 05/12/22, the lowest level in the past month. A 52-week high of $2.23 was reached on 02/17/22 after having rallying from a 52-week low of $1.01. Since the beginning of this year, NGD’s stock price has dropped by -16.00% or -$0.2400, and marked a new high 11 times. However, the stock has declined by -43.50% since its 52-week high.

Valuation Metrics

Right now, New Gold Inc. (NGD) has a P/E ratio of about 5.83. The stock’s beta is 1.88. Besides these, the trailing price-to-sales (P/S) ratio of 1.17, the price-to-book (PB) ratio of 0.72, and the price-to-cash flow ratio of 12.78 may also be considered.

Financial Health

In the three months ended September 29, New Gold Inc.’s quick ratio stood at 3.70, while its current ratio was 4.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.54. On the profitability front, the trailing twelve-month gross margin is 76.60% percent. In the year ended September 29, operating margins totaled 37.50%. Based on annual data, NGD earned $368.2 million in gross profit and brought in $745.5 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 18.10%. Return on equity (ROE) for the past 12 months was 13.10%.

In New Gold Inc.’s quarter-end financial report for September 29, it reported total debt of $9.4 million against cash and short-term investments of $4.3 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. NGD’s revenue rose 0.02% during the quarter, while net income inched up to $604.5 million. While analysts expected New Gold Inc. to report $0.02 quarterly earnings, the actual figure was $0.03 per share. During the quarter, the company generated $67.3 million in EBITDA. The liabilities of New Gold Inc. were 1.5 billion at the end of its most recent quarter ended September 29, and its total debt was $513.1 million.

Technical Picture

This quick technical analysis looks at New Gold Inc.’s (NGD) price momentum. With a historical volatility rate of 71.37%, the RSI 9-day stood at 33.74% on 13 May.

With respect to its five-day moving average, the current New Gold Inc. price is down by -6.67% percent or -$0.0900. At present, NGD shares trade -33.68% below its 20-day simple moving average and -8.03% percent below its 100-day simple moving average. However, the stock is currently trading approximately -26.32% below its SMA50 and -24.55% below its SMA200.

Stochastic coefficient K was 13.43% and Stochastic coefficient D was 8.30%, while ATR was 0.1029. Given the Stochastic reading of 27.59% for the 14-day period, the RSI (14) reading has been calculated as 33.68%. As of today, the MACD Oscillator reading stands at -0.0878, while the 14-day reading stands at -0.1333.

Analyst Ratings

New Gold Inc. downgraded its rating on New Gold Inc. (AMEX: NGD) to a Hold in a note to investors on January 18, 2022. The analysts firm previously had a Buy rating on the stock.New Gold Inc. (NGD) has been rated Hold by analysts. According to 0 brokerage firms, NGD is a sell, and 8 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 0 analysts rate New Gold Inc. stock as buy, with 3 recommending it as overweight.

With a median target price of $1.92, the current consensus forecast for the stock is $1.50 – $2.50. Based on these forecasts, analysts predict New Gold Inc. (NGD) will achieve an average price target of $1.97.

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