Randgold Resources (GOLD) Trading With Heavy Volume Before Market Open

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Randgold Resources ( GOLD) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Randgold Resources as such a stock due to the following factors:

  • GOLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.9 million.
  • GOLD traded 32,900 shares today in the pre-market hours as of 7:44 AM, representing 11.4% of its average daily volume.

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More details on GOLD:

Randgold Resources Limited explores and develops gold deposits in Sub-Saharan Africa. The stock currently has a dividend yield of 1.3%. GOLD has a PE ratio of 25.4. Currently there are 6 analysts that rate Randgold Resources a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Randgold Resources has been 630,800 shares per day over the past 30 days. Randgold has a market cap of $7.0 billion and is part of the basic materials sector and metals & mining industry. Shares are up 20.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Randgold Resources as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:
  • GOLD's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
  • RANDGOLD RESOURCES LTD has improved earnings per share by 5.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RANDGOLD RESOURCES LTD reported lower earnings of $2.99 versus $4.65 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $2.99).
  • 43.99% is the gross profit margin for RANDGOLD RESOURCES LTD which we consider to be strong. Regardless of GOLD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GOLD's net profit margin of 26.14% compares favorably to the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, RANDGOLD RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has decreased to $49.77 million or 45.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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