Gold Stock Performance Analysis: Insights into Allied Gold Corporation and Alamos Gold Inc.
With the price of gold on the rise, investors are looking for ways to gain exposure to the precious metal. In this article, we will analyze the performance of Allied Gold Corporation and Alamos Gold Inc.
Allied Gold Corporation
Allied Gold Corporation (TSE:AAUC) is a Canadian gold mining company that has seen significant growth in recent years. The company's top 10 shareholders own 51% of the company, with the largest shareholder being individual investors. This group stands to benefit the most if the stock rises. The company also has institutional investors, who hold a good portion of the company's stock. The largest shareholder is Orion Resource Partners, which holds 15% of shares outstanding.
The company's management team is responsible for representing the interests of shareholders. Insiders own CA$190m worth of shares in the CA$852m company. The general public-- including retail investors -- own 46% stake in the company, and hence can't easily be ignored. Private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation.
The price of gold has been on the rise, and Allied Gold Corporation has seen this trend as well. The price of an ounce of gold rose to the resistance level of $2265, the highest in the history of the gold price, before stabilizing around $2253 an ounce. Silver prices recorded modest gains and silver futures jumped to $25.18 an ounce. The US Treasury market rose across the board, with the 10-year yield rising 10.7 basis points to 4.303%. The two-year yield rose 5.6 basis points to 4.676%, while the 30-year yield rose 11.6 basis points to 4.453%.
Alamos Gold Inc.
Alamos Gold Inc. (TSE:AGI) is a Canadian gold mining company that has seen significant growth in recent years. The company traded as high as C$20.39 and last traded at C$19.71, with a volume of 391923 shares traded. The stock had previously closed at C$19.97. Other research analysts have also recently issued research reports about the company. TD Securities raised their price target on Alamos Gold from C$23.00 to C$24.00 and gave the stock a "buy" rating in a research report on Thursday, March 28th. National Bank Financial restated an "outperform overweight" rating on shares of Alamos Gold in a research report on Wednesday, January 3rd. BMO Capital Markets raised their price target on Alamos Gold from C$23.00 to C$26.00 and gave the stock an "outperform" rating in a research report on Thursday, March 28th. Royal Bank of Canada raised Alamos Gold from a "sector perform" rating to an "outperform" rating and raised their price objective for the company from C$12.00 to C$16.00 in a research note on Thursday, January 11th. Finally, Jefferies Financial Group set a C$14.00 price objective on Alamos Gold and gave the company a "buy" rating in a research note on Thursday, February 29th. One research analyst has rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of C$20.64.
In other news, Senior Officer Mario Luis Chavez – Martinez sold 30,000 shares of Alamos Gold stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of C$18.66, for a total transaction of C$559,737.00. 0.29% of the stock is currently owned by insiders. The stock has a 50 day moving average of C$17.15 and a 200 day moving average of C$17.37. The company has a market capitalization of C$7.82 billion, a price-to-earnings ratio of 27.36, a price-to-earnings-growth ratio of -2.10 and a beta of 0.97. Alamos Gold (TSE:AGI – Get Free Report) (NYSE:AGI) last issued its earnings results on Wednesday, February 21st. The company reported C$0.16 earnings per share for the quarter, hitting analysts’ consensus estimates of C$0.16. The business had revenue of C$346.65 million during the quarter. Alamos Gold had a return on equity of 7.44% and a net margin of 20.52%. As a group, analysts predict that Alamos Gold Inc. will post 0.7749321 EPS for the current year. The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Thursday, March 14th were given a $0.034 dividend. The ex-dividend date was Wednesday, March 13th. This represents a $0.14 annualized dividend and a yield of 0.69%. Alamos Gold’s dividend payout ratio is currently 19.44%.
Alamos Gold Inc. engages in the acquisition, exploration, development, and extraction of precious metals in Canada and Mexico. The company primarily explores for gold deposits. It holds 100% interest in the Young-Davidson mine and Island Gold mine located in the Ontario, Canada; Mulatos mine located in the Sonora, Mexico; and Lynn Lake project situated in the Manitoba, Canada.
Gold stocks are currently a popular investment option for many investors. With the price of gold on the rise, investors are looking for ways to gain exposure to the precious metal. Allied Gold Corporation and Alamos Gold Inc. have both seen significant growth in recent years. The price of gold has been on the rise, and both companies have seen this trend as well. Investors should be aware of the operational risks associated with mining companies, such as higher production costs and changes in government policies and regulations. The ideal scenario would be for oil prices to fall while gold prices continue to rise.
