The stock of New Gold Inc. (NYSE:NGD) is now priced at $1.61 and the shares are -0.02 points down or -1.23% lower compared to its previous closing price of $1.63. The stock had 5.478 million contracts set over the past session. NGD shares’ daily volume is compared to its average trading volume at 7.932 million shares. However, it has a float of 675 million and although its performance was -2.42% over the week, it’s one to watch. It means the stock’s downside potential is -100% with the NGD share price recently placing at $1.55 to $1.63. However, some brokerage firms have priced the stock below the average, including one that has called $0.85.
The shorts are running away from the New Gold Inc. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the NGD shares have declined. Short interest in the stock represents just 1.29% of its float, but the volume has dropped by 0.
In the last trading session, New Gold Inc. (NYSE:NGD) dropped by -$0.04 over the week and gained $0.25 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $1.76. The stock recorded its established 52-week high on 08/05/20.
Since 03/16/20, the stock has traded to a low of $0.3901 at 312.71%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 2.1. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, New Gold Inc.’s two-week RSI is 55.61. This suggests that the stock is neutral at the moment and that NGD shares’ price movement remains stable. The stochastic readings are equally revealing at 63.96% meaning the NGD share price is currently in neutral territory.
The technical chart shows that the NGD stock will likely settle at between $1.6433 and $1.6767 per share. However, if the stock dips below $1.5633, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $1.5167.
Currently, the stock is trading in the red of MACD, with a reading of -0.0067. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at CIBC raised their recommendation for NGD from Sector Underperform to Neutral in March 18 review. CIBC analysts downgraded their recommendation of the stock from Neutral to Sector Underperform in a flash note released to investors on February 14. RBC Capital Mkts analysts see the stock as Underperform when the analysts resumed the share price coverage on December 05.
The average rating for the NGD equity is 2.89 and is currently gathering a bullish momentum. Of 10 analysts tracking New Gold Inc. polled by Reuters, 6 rated NGD as a hold. The remaining 4 analysts were split evenly. However, the split wasn’t equal as a majority (2) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the NGD stock price is 14.77X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 25. New Gold Inc. has its P/E ratio at 1.3, which means that the stock is currently trading at a discount relative to the 2.9 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for New Gold Inc. (NYSE:NGD) will decrease by about -99.88%, which will see them reach $217.32 million. The company’s full-year revenues are, however, expected to increase by about 55.45%, up from $604.4 million to $939.52 million. NGD’s expected adjusted earnings should drop almost -50% to end up at $0.01 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 11.11% to record $0.1/share.