Something Big Is Happening With New Gold Inc. (NGD)

New Gold Inc. (NGD) will probably climb 271.3 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $1.29 price as 12-month high target. This represents a whopping 19.44 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $0.97, which represents a return potential of -10.19 percent when compared to the closing price of the stock of $1.08 on Tuesday, January 08. The lowest price target for the stock is $0.75 — slightly more than -30.56 percent from NGD’s current share price.

The stock is currently hovering around the first support level of $1.02. Below this, the next support is placed in the zone of $0.95. Till the time, the NGD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 73.09 on daily chart, which may remain a cause for concern. If the price breaks below $0.95 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.13 mark may result into a pull-back move towards $1.17 level.

On 8th of January, New Gold Inc. (NYSE:NGD) shares ended higher after a volatile session. The shares accumulated 0.12 points or 12.5 percent at $1.08 with a heavy trade volume of 7.785 million shares. After opening the session at $1.01, the shares went as high as $1.11 and as low as $1, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $625 million and now has 578.7 million shares outstanding. New Gold Inc. (NGD) stock has gained 37.21 percent of market value in 21 trading days.

NGD stock has a trailing 3-year beta of -0.2, 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 $-0.9 a share in the trailing twelve months. The stock’s value has surged 42.71 percent year to date (YTD) against a decline of -68.51 percent in 12 month’s time. The company’s shares still trade -68.7 percent away from its 1-year high of $3.45 and 55.4 percent up from 52-week low of $0.69. The average consensus rating on the company is 2.7, 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 New Gold Inc. (NGD) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry NGD operates in has an average P/E of 15.81. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.98 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1. 75.1 percent is the gross profit margin for New Gold Inc. and operating margin sits at -60.1 percent. Along with this, the net profit margin is -82.2 percent.