NovaGold Resources Inc. (AMEX: NG) stock fell -1.70% on Friday to $4.63 against a previous-day closing price of $4.71. With 1.34 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.69 million shares. During the session, the Gold company that operates in wider Basic Materials sector, reached to the highest price of $4.7400 whereas the lowest price it dropped to was $4.5100. The 52-week range on NG shows that it touched its highest point at $8.36 and its lowest point at $4.22 during that stretch. It currently has a 1-year price target of $15.33. Beta for the stock currently stands at 0.55.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NG was down-trending over the past week, with a drop of -1.28%, but this was up by 0.22% over a month. Three-month performance dropped to -26.16% while six-month performance fell -30.27%. The stock lost -40.56% in the past year, while it has lost -32.51% so far this year. A look at the trailing 12-month EPS for NG yields -0.11 with Next year EPS estimates of -0.08. For the next quarter, that number is -0.04. This implies an EPS growth rate of 16.70% for this year and 20.00% for next year.
Float and Shares Shorts:
At present, 333.23 million NG shares are outstanding with a float of 244.98 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.03 million, which was 2.71% higher than short shares on Jun 14, 2022. In addition to Mr. Gregory A. Lang as the firm’s Pres, CEO & Non-Independent Director, Mr. David A. Ottewell CA serves as its VP & CFO.
Through their ownership of 54.85% of NG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 36.52% of NG, in contrast to 29.27% held by mutual funds. Shares owned by individuals account for 19.90%. As the largest shareholder in NG with 7.46% of the stake, Fidelity Management & Research Co holds 24,861,286 shares worth 24,861,286. A second-largest stockholder of NG, Paulson & Co., Inc., holds 22,226,300 shares, controlling over 6.67% of the firm’s shares. First Eagle Investment Management is the third largest shareholder in NG, holding 14,097,193 shares or 4.23% stake. With a 4.11% stake in NG, the First Eagle Gold Fund is the largest stakeholder. A total of 13,690,103 shares are owned by the mutual fund manager. The VanEck Junior Gold Miners ETF, which owns about 2.69% of NG stock, is the second-largest Mutual Fund holder. It holds 8,954,337 shares valued at 43.07 million. Fidelity Contrafund holds 2.13% of the stake in NG, owning 7,097,651 shares worth 34.14 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NG since 4 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NG analysts setting a high price target of $28.00 and a low target of $6.98, the average target price over the next 12 months is $13.49. Based on these targets, NG could surge 504.75% to reach the target high and rise by 50.76% to reach the target low. Reaching the average price target will result in a growth of 191.36% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NG will report FY 2022 earnings on 01/25/2023. Analysts have provided yearly estimates in a range of -$0.09 being high and -$0.15 being low. For NG, this leads to a yearly average estimate of -$0.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NovaGold Resources Inc. surprised analysts by -$0.01 when it reported -$0.04 EPS against a consensus estimate of -$0.03. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is -$0.02 and the low estimate is -$0.04. The average estimate for the next quarter is thus -$0.03.