Trade-Ideas LLC identified Royal Gold ( RGLD) as a strong 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 $46.1 million.
  • RGLD has traded 92,529 shares today.
  • RGLD is trading at 2.08 times the normal volume for the stock at this time of day.
  • RGLD is trading at a new high 6.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.

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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 1.6%. Currently there are 4 analysts that rate Royal Gold a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Royal Gold has been 888,200 shares per day over the past 30 days. Royal has a market cap of $3.7 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.59 and a short float of 6.2% with 4.58 days to cover. Shares are up 54.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Royal Gold as a hold. The company's strengths can be seen in multiple areas, such as its robust 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 deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 44.9%. Since the same quarter one year prior, revenues rose by 26.1%. 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 0.28 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 6.96, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has remained constant at $66.05 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -39.94%.
  • The share price of ROYAL GOLD INC has not done very well: it is down 12.59% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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, 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 370.5% when compared to the same quarter one year ago, falling from $25.01 million to -$67.66 million.

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