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Is Buying Stock In New Gold Inc. (NGD) A Good Move Today?

New Gold Inc. (AMEX:NGD) saw a downside of -3.70% to close Friday at $1.04 after subtracting -$0.04 on the day. The 5-day average trading volume is 3,920,400…

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This article was originally published by Fosters Leader

New Gold Inc. (AMEX:NGD) saw a downside of -3.70% to close Friday at $1.04 after subtracting -$0.04 on the day. The 5-day average trading volume is 3,920,400 shares of the company’s common stock. It has gained $1.1800 in the past week and touched a new high 3 times within the past 5 days. An average of 4,656,560 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,401,212.

NGD’s 1-month performance is -22.96% or -$0.3400 on its low of $1.0300 reached on 07/08/22. The company’s shares have touched a 52-week low of $1.01 and high of $2.02, with the stock’s rally to the 52-week high happening on 02/17/22. YTD, NGD has lost -30.67% or -$0.4600 and has reached a new high 11 times. However, the current price is down -48.51% from the 52-week high price.

Valuation Metrics

NGD stock has a beta of 1.89. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.98 while the price-to-book (PB) in the most recent quarter is 0.58, with the price to cash flow ratio at 10.69.

New Gold Inc.’s quick ratio for the period ended March 30 was 3.70, with the current ratio over the same period at 4.40. In terms of profitability, the gross margin trailing 12 months is 76.60%. The firm’s gross profit as reported stood at $368.2 million against revenue of $745.5 million.

Earnings Surprise

For the quarterly period ending March 30 this year, New Gold Inc.’s cash and short-term investments amounted to $4.3 million against total debt of $509.5 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 91.19% to -$1.23 billion, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected NGD to announce $0.02 per share in earnings in its latest quarter, but it posted $0.02, representing a 0.00% surprise. EBITDA for the quarter stood at more than $67.3 million. NGD stock balance sheet for the quarter ending March 30 shows that total liabilities totaled 1.5 billion, with total debt at $509.5 million.

Let’s look briefly at New Gold Inc. (NGD) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 08 July was 35.33% to suggest the stock is trending Neutral, with historical volatility in this time period at 64.13%.

The stock’s 5-day moving average is $1.0880, reflecting a -2.80% or -$0.0300 change from its current price. NGD is currently trading -24.64% above its 20-day SMA, -44.09% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -28.28% and SMA200 by-7.14%.

Stochastic %K and %D was 20.23% and 23.46% and the average true range (ATR) pointed at 0.0889. The RSI (14) points at 37.59%, while the 14-day stochastic is at 4.17% with the period’s ATR at 0.0899. The stock’s 9-day MACD Oscillator is pointing at -0.0356 and -0.0617 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for New Gold Inc. (AMEX: NGD), Canaccord Genuity downgraded it to a Hold rating. They previously had a Buy rating on the stock. Analysts offering their rating for NGD stock have a consensus rating for the stock as Hold. Currently, 0 brokerage advisors rate NGD as a “sell,”, while 8 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 0 rates the stock as overweight while 3 have offered a “buy” rating.

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