Investors Purchase High Volume of Call Options on New Gold (NYSE:NGD)

New Gold Inc. (NYSE:NGD) was the recipient of unusually large options trading on Monday. Investors acquired 10,315 call options on the company. This is an increase of approximately 144% compared to the typical daily volume of 4,222 call options.

New Gold Stock Down 7.7 %

Shares of NYSE:NGD opened at $2.53 on Tuesday. New Gold has a 12-month low of $1.09 and a 12-month high of $3.25. The company has a market capitalization of $2.00 billion, a PE ratio of 126.50 and a beta of 1.31. The stock’s 50 day moving average price is $2.83. The company has a current ratio of 1.42, a quick ratio of 0.84 and a debt-to-equity ratio of 0.45.

New Gold (NYSE:NGD) last issued its quarterly earnings results on Tuesday, October 29th. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.04. The business had revenue of $252.00 million during the quarter. New Gold had a return on equity of 9.38% and a net margin of 2.33%. Equities research analysts expect that New Gold will post 0.17 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on NGD. Scotiabank boosted their price target on New Gold from $2.75 to $3.25 and gave the stock a “sector outperform” rating in a research report on Tuesday, September 17th. StockNews.com raised New Gold from a “hold” rating to a “buy” rating in a research report on Friday, October 25th. Finally, Royal Bank of Canada boosted their price target on New Gold from $3.00 to $3.50 and gave the stock an “outperform” rating in a research report on Tuesday, September 10th. Two analysts have rated the stock with a hold rating, four have given a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat, New Gold has a consensus rating of “Buy” and a consensus target price of $3.08.

Institutional Investors Weigh In On New Gold

Several institutional investors have recently made changes to their positions in the stock. CIBC Asset Management Inc boosted its stake in shares of New Gold by 2.2% in the third quarter. CIBC Asset Management Inc now owns 2,105,546 shares of the company’s stock valued at $6,105,000 after buying an additional 44,571 shares during the period. Plato Investment Management Ltd bought a new stake in shares of New Gold in the third quarter valued at approximately $226,000. Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of New Gold by 12.9% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 265,441 shares of the company’s stock valued at $764,000 after buying an additional 30,366 shares during the period. Old West Investment Management LLC boosted its stake in shares of New Gold by 42.9% in the third quarter. Old West Investment Management LLC now owns 1,000,000 shares of the company’s stock valued at $2,880,000 after buying an additional 300,000 shares during the period. Finally, Intact Investment Management Inc. lifted its stake in New Gold by 9.4% during the third quarter. Intact Investment Management Inc. now owns 2,329,400 shares of the company’s stock worth $6,752,000 after purchasing an additional 200,000 shares during the last quarter. 42.82% of the stock is currently owned by institutional investors.

New Gold Company Profile

New Gold Inc, an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia.