Trade-Ideas LLC identified Royal Gold ( RGLD) as a "dead cat bounce" (down big yesterday but up big today) 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 $47.8 million.
  • RGLD has traded 942,207 shares today.
  • RGLD is up 3.1% today.
  • RGLD was down 11.8% yesterday.

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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 2.2%. Currently there are 8 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 883,800 shares per day over the past 30 days. Royal has a market cap of $2.6 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.31 and a short float of 5.5% with 2.38 days to cover. Shares are down 43.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Royal Gold as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 341.1% when compared to the same quarter one year ago, falling from $18.68 million to -$45.05 million.
  • 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 underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has significantly decreased to $2.49 million or 95.25% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 337.93% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ROYAL GOLD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ROYAL GOLD INC reported lower earnings of $0.80 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.80).

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