Shares of Lundin Gold Inc. (TSE:LUG) soared to a new 52-week high during trading on Thursday, reaching C$117.09 before closing at C$116.16. This uptick followed an upgrade from CIBC, which raised its price target for the stock from C$116.00 to C$123.00. The trading volume for the day was 46,152 shares, a significant increase from its previous close of C$114.72.
Several other financial analysts have also adjusted their ratings on Lundin Gold recently. Canaccord Genuity Group increased its price target from C$103.00 to C$108.00 in a report issued on Wednesday. Meanwhile, Desjardins downgraded Lundin Gold from a “moderate buy” to a “hold” rating, while raising its target price from C$62.00 to C$70.00. On October 10, Raymond James Financial raised its target from C$65.00 to C$80.00, and TD Securities adjusted its rating from “strong-buy” to “hold,” increasing the target price from C$65.00 to C$73.00. Additionally, BMO Capital Markets raised its price objective from C$104.00 to C$108.00.
Overall, ten research analysts currently rate the stock as a hold, while one has issued a sell rating. According to MarketBeat.com, the stock carries an average rating of “Reduce” with a consensus price target of C$76.29.
Insider Transactions and Ownership
In related news, insider Sheila Margaret Colman sold 14,600 shares on August 26, at an average price of C$81.49, totaling approximately C$1.19 million. Following this transaction, Colman retained 37,068 shares, valued at about C$3.02 million, indicating a 28.26% reduction in her ownership. Another insider, Chester See, sold 20,000 shares on the same date for an average price of C$83.30, amounting to C$1.67 million. After this sale, See owned 132,571 shares, worth approximately C$11.04 million, reflecting a 13.11% decrease in his position. Company insiders collectively hold 58.72% of Lundin Gold’s stock.
Stock Performance and Financials
As of now, Lundin Gold boasts a market capitalization of C$27.14 billion. The company has a price-to-earnings (P/E) ratio of 39.73 and a beta of 1.35, indicating a relatively high level of volatility compared to the market. Its fifty-day simple moving average stands at C$95.52, while the 200-day moving average is at C$78.47.
The company last reported earnings on November 7, revealing earnings per share (EPS) of C$0.86 for the quarter, alongside revenues of C$622.58 million. Lundin Gold’s net margin was reported at 29.56%, with a return on equity of 29.88%. Analysts forecast that Lundin Gold will achieve an EPS of C$2.56 for the current fiscal year.
Recently, Lundin Gold announced a quarterly dividend of C$0.675, paid to shareholders on September 25. This represents an increase from the previous quarterly dividend of C$0.21. The ex-dividend date was September 10, and the annualized dividend now stands at C$2.70, yielding 2.4%. The company’s dividend payout ratio is currently set at 61.48%.
Lundin Gold is primarily focused on its Fruta del Norte gold operation and is actively developing its portfolio of mineral concessions in Ecuador. The Fruta del Norte deposit is located within a 150 km copper-gold metallogenic sub-province in the Cordillera del Condor region of southeastern Ecuador.
