Pre-Market Activity Shows Heavy Volume And Movement For Randgold Resources (GOLD)

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.

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 $33.3 million.
  • GOLD traded 54,381 shares today in the pre-market hours as of 8:30 AM, representing 11.7% 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 0.8%. GOLD has a PE ratio of 25. Currently there are 5 analysts that rate Randgold Resources a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Randgold Resources has been 611,200 shares per day over the past 30 days. Randgold has a market cap of $6.6 billion and is part of the basic materials sector and metals & mining industry. Shares are up 4.7% year-to-date as of the close of trading on Tuesday.

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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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income 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.
  • Net operating cash flow has significantly increased by 104.38% to $101.72 million when compared to the same quarter last year. In addition, RANDGOLD RESOURCES LTD has also vastly surpassed the industry average cash flow growth rate of 19.72%.
  • 35.57% 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 20.84% significantly outperformed against the industry.
  • In its most recent trading session, GOLD has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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, RANDGOLD RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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