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Royal Gold (RGLD) Hits 52-Week High: What's Driving the Stock?
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Shares of Royal Gold, Inc. (RGLD - Free Report) scaled a new 52-week high of $141.39 on Aug 23 before ending the session slightly lower at $141.15. The increase was fueled by rising gold prices and RGLD’s solid second-quarter results.
Royal Gold currently has a market capitalization of $9.28 billion and a Zacks Rank #3 (Hold).
What’s Aiding Royal Gold?
Solid Q2 Results: RGLD reported adjusted earnings per share (EPS) of $1.25 in second-quarter 2024, beating the Zacks Consensus Estimate of $1.17. The bottom line increased 42% year over year. Royal Gold generated revenues of $174 million, up 20.8% year over year. Increased gold and silver production at Peñasquito drove the results.
Stream revenues were $123 million and royalty revenues were $51 million in the June-end quarter. Stream revenues increased 15.9% year over year, whereas royalty revenues improved 34.5%.
Strong Financial Position: Royal Gold is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. Total liquidity was $1 billion as of Jun 30, 2024, consisting of $11 million in working capital and $950 million available under the revolving credit facility.
This provides the company with the scope to further strengthen its portfolio. As of Jun 30, 2024, Royal Gold’s total debt to total capital ratio declined to 0.2 from 0.5 as of Mar 31, 2024.
Uptick in Gold Prices: Gold prices have been on an upward trend in 2024 as traders see a potential for the Fed to begin lowering rates. Since the start of 2024, gold prices have risen 22.4% and remained consistently above the $2,000-per-ounce mark. Several factors have contributed to this upward trajectory, including increased geopolitical tensions, the potential for monetary policy easing and continuous purchasing by central banks. The yellow metal is currently at an all-time high at around $2,520 per ounce.
Royal Gold’s Price Performance
In the past year, RGLD shares have gained 28.2% compared with the industry’s growth of 38.3%.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.
The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 137% in a year.
The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.
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Royal Gold (RGLD) Hits 52-Week High: What's Driving the Stock?
Shares of Royal Gold, Inc. (RGLD - Free Report) scaled a new 52-week high of $141.39 on Aug 23 before ending the session slightly lower at $141.15. The increase was fueled by rising gold prices and RGLD’s solid second-quarter results.
Royal Gold currently has a market capitalization of $9.28 billion and a Zacks Rank #3 (Hold).
What’s Aiding Royal Gold?
Solid Q2 Results: RGLD reported adjusted earnings per share (EPS) of $1.25 in second-quarter 2024, beating the Zacks Consensus Estimate of $1.17. The bottom line increased 42% year over year. Royal Gold generated revenues of $174 million, up 20.8% year over year. Increased gold and silver production at Peñasquito drove the results.
Stream revenues were $123 million and royalty revenues were $51 million in the June-end quarter. Stream revenues increased 15.9% year over year, whereas royalty revenues improved 34.5%.
Strong Financial Position: Royal Gold is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. Total liquidity was $1 billion as of Jun 30, 2024, consisting of $11 million in working capital and $950 million available under the revolving credit facility.
This provides the company with the scope to further strengthen its portfolio. As of Jun 30, 2024, Royal Gold’s total debt to total capital ratio declined to 0.2 from 0.5 as of Mar 31, 2024.
Uptick in Gold Prices: Gold prices have been on an upward trend in 2024 as traders see a potential for the Fed to begin lowering rates. Since the start of 2024, gold prices have risen 22.4% and remained consistently above the $2,000-per-ounce mark. Several factors have contributed to this upward trajectory, including increased geopolitical tensions, the potential for monetary policy easing and continuous purchasing by central banks. The yellow metal is currently at an all-time high at around $2,520 per ounce.
Royal Gold’s Price Performance
In the past year, RGLD shares have gained 28.2% compared with the industry’s growth of 38.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and Eldorado Gold Corporation (EGO - Free Report) . CRS, IAG and EGO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.
The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 137% in a year.
The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.