About to Buy Kinross Gold Corporation (KGC)? Look at These Metrics First

Analysts at Credit Suisse cut their rating on shares of Kinross Gold Corporation (NYSE:KGC) from Neutral to Underperform in their opinion released on December 19. RBC Capital Mkts analysts have downgraded their rating of KGC stock from Outperform to Sector Perform in a separate flash note to investors on August 20. Analysts at Macquarie issued an upgrade from Neutral to Outperform for the stock, in a research note that dated back to November 10.

Kinross Gold Corporation (KGC) is expected to jump by 30.65 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $5price as 12-month high target. This represents a whopping 61.29 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 29.03 percent when compared to the closing price of the stock of $3.1 on Tuesday, January 15. The lowest price target for the stock is $2.75 — slightly more than -11.29 percent from KGC’s current share price.

The shares are currently floating around the first support level of $3.06. Below this, the next support is placed in the zone of $3.01. Till the time, the KGC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 53.5 on daily chart, which may remain a cause for concern. If the price breaks below $3.01 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.17 mark may result into a pull-back move towards $3.23 level.

KGC shares dropped -0.06 points or -1.9 percent on Tuesday to $3.1 with a light trade volume of 13.504 million shares. After opening the session at $3.18, the shares went as high as $3.19 and as low as $3.0801, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.88 billion and now has 1.25 billion shares outstanding. Kinross Gold Corporation (KGC) stock has gained 6.9 percent of market value in 21 trading days.

KGC stock has a trailing 3-year beta of -0.06, 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 -4.32 percent year to date (YTD) against a decline of -28.57 percent in 12 month’s time. The company’s shares still trade -35.15 percent away from its 1-year high of $4.78 and 30.25 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 14.69 times earnings reported for the past 12 months. The industry KGC operates in has an average P/E of 15.81. Its P/E ratio went as low as 12.19X and as high as 12.19 over the 5-year span. Further, it is sporting a 1.2 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1. 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.