Kinross Gold Corporation (KGC): Incredible, Overlooked, Underappreciated

Taking everything into account, Kinross Gold Corporation (NYSE:KGC) scores 8% Buy on the technical side. The stock is also flashing a Hold from the Barchart TrendSpotter trading system. Traders hoping to speculate on the KGC’s short-term trajectory should know that short terms indicators for the stock averaged 40% Buy with an average daily trading volume over the past 20 days at 15404564 shares. KGC stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 14899922 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $2.77. Below this, the next support is placed in the zone of $2.72. Till the time, the KGC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 59.26 on daily chart, which may remain a cause for concern. If the price breaks below $2.72 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $2.86 mark may result into a pull-back move towards $2.89 level.

Kinross Gold Corporation (KGC) is projected to climb by 43.26 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $5-month high price target. This represents a whopping 77.3 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $4, which represents a return potential of 41.84 percent when compared to the closing price of the stock of $2.82 on Thursday, December 06. The lowest price target for the stock is $2.8 — slightly more than -0.71 percent from KGC’s current share price.

KGC shares accumulated 0.02 points or 0.71 percent on Thursday to $2.82 with a heavy trade volume of 20.767 million shares. After opening the session at $2.78, the shares went as high as $2.845 and as low as $2.76, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.55 billion and now has 1.26 billion shares outstanding. Kinross Gold Corporation (KGC) stock has gained 2.92 percent of market value in 21 trading days.

Analysts at RBC Capital Mkts cut their rating on shares of Kinross Gold Corporation (NYSE:KGC) from Outperform to Sector Perform in their opinion released on August 20. Macquarie analysts bumped their recommendation on KGC stock from Neutral to Outperform in a separate flash note to investors on November 10. Analysts at Citigroup issued an upgrade from Sell to Neutral for the stock, in a research note that dated back to September 01.

KGC stock has a trailing 3-year beta of 0.26, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.18 a share in the trailing twelve months. The stock’s value has fallen -34.72 percent year to date (YTD) against a decline of -28.24 percent in 12 month’s time. The company’s shares still trade -41 percent away from its 1-year high of $4.78 and 18.49 percent up from 52-week low of $2.38. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Kinross Gold Corporation (KGC) are trading at a P/E ratio of 101.95 times earnings reported for the past 12 months. The industry KGC operates in has an average P/E of 2.08. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 1.1 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.75. 20.4 percent is the gross profit margin for Kinross Gold Corporation and operating margin sits at 8.6 percent. Along with this, the net profit margin is 6.9 percent.

KGC will be declaring its Q4 financial results on February 13. Analysts are forecasting revenue to suffer decline of -5.9 percent to $762M in the next fiscal quarter, while earnings are seen soaring by nearly -100 percent to $0 per share. History has shown that shares in Kinross Gold Corporation have gone up on 18 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.04 per share, worse than the $0, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $754M, worse than the $780M analysts expected. Earnings are estimated to increase by 518.1 percent this year, 32.58 percent next year and continue to increase by -8.41 percent annually for the next 5 years.