New Gold (NYSE:NGD) Shares Gap Up – Here’s Why

New Gold Inc. (NYSE:NGD) shares gapped up prior to trading on Tuesday . The stock had previously closed at $9.95, but opened at $10.73. New Gold shares last traded at $10.4580, with a volume of 2,403,246 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on NGD. Scotiabank upped their price target on New Gold to $12.75 and gave the company an “outperform” rating in a research report on Monday, January 26th. CIBC lifted their target price on New Gold from $6.50 to $9.50 and gave the company an “outperformer” rating in a research note on Friday, October 10th. TD Securities upgraded New Gold from a “hold” rating to a “buy” rating and set a $12.00 target price on the stock in a report on Monday, December 1st. Raymond James Financial reissued a “market perform” rating and issued a $7.00 price target on shares of New Gold in a research report on Friday, October 10th. Finally, National Bankshares reaffirmed an “outperform” rating on shares of New Gold in a research report on Thursday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $8.18.

New Gold Stock Performance

The company has a market cap of $8.15 billion, a price-to-earnings ratio of 79.81 and a beta of 0.62. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.39 and a quick ratio of 0.84. The firm has a fifty day simple moving average of $9.42 and a 200 day simple moving average of $7.33.

Institutional Trading of New Gold

A number of hedge funds have recently modified their holdings of the stock. Employees Retirement System of Texas bought a new stake in New Gold during the second quarter worth about $32,000. Aventura Private Wealth LLC bought a new stake in shares of New Gold in the fourth quarter worth $34,000. Wealth Enhancement Advisory Services LLC acquired a new stake in shares of New Gold in the third quarter valued at about $41,000. MAI Capital Management acquired a new stake in New Gold during the 3rd quarter valued at approximately $43,000. Finally, SBI Securities Co. Ltd. boosted its position in New Gold by 1,837.7% during the second quarter. SBI Securities Co. Ltd. now owns 8,933 shares of the company’s stock valued at $44,000 after acquiring an additional 8,472 shares during the last quarter. Institutional investors and hedge funds own 42.82% of the company’s stock.

About New Gold

New Gold Inc is a Canadian-based intermediate precious metals producer focused on the exploration, development and operation of gold and copper mining assets. The company was formed in 2008 through the merger of two exploration firms and has since grown into a multi-asset mining platform. Headquartered in Toronto, New Gold emphasizes a disciplined approach to capital allocation and operational execution, with a commitment to environmental stewardship and strong community relations.

New Gold’s principal producing assets include the New Afton Mine in British Columbia and the Rainy River Mine in northwestern Ontario.