Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Gold as such a stock due to the following factors:
- RGLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.0 million.
- RGLD has traded 107,036 shares today.
- RGLD is trading at 2.34 times the normal volume for the stock at this time of day.
- RGLD is trading at a new low 3.00% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in RGLD with the Ticky from Trade-Ideas. See the FREE profile for RGLD NOW at Trade-Ideas
More details on RGLD:
Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metals royalties, metal streams, and similar interests. It focuses on acquiring royalty and stream interests or to finance projects that are in production or in development stage in exchange for royalty interests. The stock currently has a dividend yield of 2%. RGLD has a PE ratio of 54. Currently there are 7 analysts that rate Royal Gold a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Royal Gold has been 750,000 shares per day over the past 30 days. Royal has a market cap of $2.9 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.48 and a short float of 7% with 3.90 days to cover. Shares are down 29.4% year-to-date as of the close of trading on Thursday.
rates Royal Gold as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 45.1%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- RGLD's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 31.51, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ROYAL GOLD INC is currently very high, coming in at 84.93%. Regardless of RGLD's high profit margin, it has managed to decrease from the same period last year.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ROYAL GOLD INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Looking at the price performance of RGLD's shares over the past 12 months, there is not much good news to report: the stock is down 37.66%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, RGLD is still more expensive than most of the other companies in its industry.
- You can view the full Royal Gold Ratings Report.