Eldorado Gold Corporation (EGO): Technical Analysis Suggests You Should Hold

The stock of Eldorado Gold Corporation (NYSE:EGO) increased by $0.12 on Monday to finish at $6.05, up 2.02 percent. The last five days have seen an average of 2,251,460 shares of common stock traded. 20 times new highs were reached in the current year, with a fall of -$3.30. The average number of shares traded over the last 20 days was 1,823,680, while the average volume over the last 50 days totaled 2,154,220.

EGO stock dropped -4.27% since last month. On 09/01/22, the company’s shares reached a one-month low of $5.21. The stock touched a high of $12.49 on 04/18/22, after rallying from a low of $5.21 in 52 weeks. The price of EGO stock has declined by -35.29% or -$3.30 this year, reaching a new high 20 times. Still, the stock price is down -51.54% from the 52-week high.

Valuation Metrics

Beta for the stock is 1.40. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.23, the price-to-book (PB) ratio of 0.34.

Company paid $0.0153 per share in dividends, an increase of 53.0% from $0.01 last year.

Financial Health

For the three months ended June 29, Eldorado Gold Corporation’s quick ratio was 2.40, while its current ratio was 3.50, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.16, and the total debt to equity ratio is 0.16. As far as profitability goes, gross margin for the trailing twelve months is 27.80% percent. Eldorado Gold Corporation’s operating margin stood at -25.90% for the same period. Based on annual data, it had gross profit of $491.17 million and revenue of $940.91 million.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. EGO’s return on assets (ROA) during the last 12 months has been -9.20%. There was a 1.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -12.60%.

Earnings Surprise

According to Eldorado Gold Corporation’s quarterly financial report for the quarter that ended June 29, it had $4.26 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $617.82 million, while revenues rose by 25.7% to $0.0. It was predicted that Eldorado Gold Corporation’s quarterly earnings would be $0.08, but it ended up being $0.11, beating the consensus by -27.30%. EBITDA was $89.89 million for the quarter. At the end of Eldorado Gold Corporation’s most recent quarter ended June 29, its liabilities totaled 1.28 billion, while its total debt was $515.17 million.

Technical Picture

Here’s a quick look at Eldorado Gold Corporation’s (EGO) price momentum from a technical perspective. As of 12 September, the RSI 9-day stood at 58.20%, suggesting the stock is Neutral, with a 54.13% historical volatility rate.

The stochastic %K and %D were 66.36% and 57.49% respectively, while the average true range (ATR) was 0.27. Based on the 14-day stochastic reading of 77.06%, the RSI (14) reading is 53.19%. On the 9-day MACD Oscillator, the stock is at 0.25, and the 14-day reading is at 0.13.

Analyst Ratings

In its most recent analyst report, Canaccord Genuity raised its rating on Eldorado Gold Corporation (NYSE: EGO) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Eldorado Gold Corporation (EGO) an Overweight rating. EGO is a stock that is recommended for selling by 1 brokerage firm, while 3 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 6 others recommend it as a buy.

What is EGO’s price target for the next 12 months?

The current consensus forecast for the stock is between $7.00 and $13.86, with a median target price of $9.33. In analyzing these forecasts, the average price target given by analysts for Eldorado Gold Corporation (EGO) is $10.46.

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