Alert: Negative Investment/Fundamental Signals (7/31/18)-Royal Gold Inc (NASDAQ: RGLD)


Royal Gold Inc (NASDAQ: RGLD)



Negative Investment/Fundamental Signals

Important negative changes in fundamentals have recently occurred for Royal Gold Inc (NASDAQ: RGLD): significant quarterly sales deceleration occurred, significant quarterly earnings deceleration occurred, and the consensus estimate for June, 2019 decreased significantly.

Recent extremely meaningful negative changes in investment behavior have impacted Royal Gold Inc (NASDAQ: RGLD): the stock’s recent price decline challenged its longer term uptrend, and its shorter term price trend turned down.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

Current PriceTarget Research Rating

Reflecting future returns on capital that are forecasted to be in line with the cost of capital, RGLD is expected to continue to be Value Creation neutral.

Royal Gold has a current Value Trend Rating of C (Low Neutral). The Value Trend Rating reflects very contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. Royal Gold has a good Power Rating of 75 but a poor Appreciation Score of 17, producing the Low Neutral Value Trend Rating.

Recent Price Action

On 7/31/18, Royal Gold Inc (NASDAQ: RGLD) stock rose modestly by 0.4%, closing at $84.61. NORMAL trading volume accompanied the advance. The stock has been strong relative to the market over the last nine months but has declined -6.5% during the last week.

About John Lafferty 122561 Articles
During his career, John has developed valuation and stock rating methodologies, managed institutional portfolios and mutual funds, and provided equity research to institutional investors on thousands of companies. He has been Director of Research at PTR since its inception in 2004.

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