New Gold (NYSE:NGD) Shares Gap Up – Should You Buy?

New Gold Inc. (NYSE:NGD)’s share price 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 trading hands.

Wall Street Analysts Forecast Growth

NGD has been the topic of several analyst reports. Zacks Research raised shares of New Gold from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 27th. National Bankshares reiterated an “outperform” rating on shares of New Gold in a report on Thursday, October 30th. CIBC increased their price target on New Gold from $6.50 to $9.50 and gave the company an “outperformer” rating in a research report on Friday, October 10th. Scotiabank boosted their price target on New Gold to $12.75 and gave the stock an “outperform” rating in a research report on Monday, January 26th. Finally, TD Securities upgraded New Gold from a “hold” rating to a “buy” rating and set a $12.00 price objective on the stock in a research note on Monday, December 1st. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, New Gold presently has an average rating of “Buy” and an average price target of $8.18.

New Gold Stock Performance

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 stock has a 50-day moving average price of $9.53 and a 200-day moving average price of $7.39. The company has a market capitalization of $7.47 billion, a price-to-earnings ratio of 72.54 and a beta of 0.59.

Hedge Funds Weigh In On New Gold

Several institutional investors and hedge funds have recently made changes to their positions in NGD. Van ECK Associates Corp lifted its holdings in New Gold by 50.7% during the 3rd quarter. Van ECK Associates Corp now owns 72,796,146 shares of the company’s stock worth $522,678,000 after purchasing an additional 24,495,669 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in New Gold by 89.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 28,812,369 shares of the company’s stock worth $143,011,000 after buying an additional 13,591,642 shares during the period. Vanguard Group Inc. increased its position in New Gold by 1,531.2% during the 3rd quarter. Vanguard Group Inc. now owns 11,468,982 shares of the company’s stock worth $82,164,000 after buying an additional 10,765,902 shares during the period. Voloridge Investment Management LLC bought a new stake in shares of New Gold in the third quarter valued at about $49,428,000. Finally, JPMorgan Chase & Co. boosted its position in shares of New Gold by 86.4% in the second quarter. JPMorgan Chase & Co. now owns 11,465,579 shares of the company’s stock valued at $56,755,000 after acquiring an additional 5,314,473 shares during the period. 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.