DDD Partners LLC has made a significant investment in Royal Gold, Inc. (NASDAQ:RGLD) during the third quarter of 2023, according to a recent filing with the Securities and Exchange Commission. The firm acquired 8,556 shares of the precious metals company, valued at approximately $1.716 million, highlighting continued interest in the mining sector despite market fluctuations.
Institutional Investors Adjust Holdings
Other institutional investors have also been active in modifying their stakes in Royal Gold. Notably, AQR Capital Management LLC increased its position by 8.2% in the second quarter, now owning 1,820,435 shares worth about $319.14 million after adding 137,524 shares. Similarly, Geode Capital Management LLC raised its holdings by 3.6%, now possessing 1,751,136 shares valued at $311.46 million, following a purchase of 61,352 shares.
Invesco Ltd. also enhanced its stake in Royal Gold by 19.5%, bringing its total to 928,332 shares valued at $165.1 million after acquiring 151,492 shares. Arrowstreet Capital Limited Partnership made a noteworthy increase of 52.3%, now holding 833,181 shares worth $148.17 million. Additionally, Swedbank AB raised its position by 35.0%, owning 424,129 shares valued at $85.07 million.
Overall, institutional investors now control 83.65% of Royal Gold’s stock, reflecting strong confidence in the company’s performance and growth potential.
Analyst Ratings and Stock Performance
Royal Gold has recently attracted attention from analysts, with varied ratings emerging from several reports. On November 1, 2023, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating. Meanwhile, BMO Capital Markets set a price target of $240.00 and maintained an “outperform” rating as of October 21, 2023.
Jefferies Financial Group reiterated a “buy” rating with a price objective of $270.00 on December 7, 2023. In contrast, TD Cowen increased their target price slightly from $261.00 to $263.00 while maintaining a “buy” rating on November 18, 2023. Overall, the stock holds an average rating of “Moderate Buy” with a consensus price target of $251.50 according to MarketBeat.com.
As of the latest trading session, Royal Gold’s stock opened at $286.10, reflecting a 4.9% increase. The shares have fluctuated significantly, with a fifty-two week low of $142.95 and a high of $306.25. The company boasts a market capitalization of $24.15 billion and a price-to-earnings ratio of 39.30.
Royal Gold’s financial health is underscored by its debt-to-equity ratio of 0.23, a quick ratio of 2.68, and a current ratio of 2.89. The company’s recent performance indicates a robust operational framework amidst market challenges.
Dividend Announcement and Company Overview
In additional news, Royal Gold announced a quarterly dividend of $0.475, which was paid on January 16, 2024, to stockholders of record as of January 2, 2024. This represents an annualized dividend yield of 0.7%, an increase from the previous quarterly dividend of $0.45. The company’s payout ratio currently stands at 26.10%, indicating a balanced approach to shareholder returns.
Headquartered in Denver, Colorado, Royal Gold operates as a leading precious metals streaming and royalty company. Through its innovative business model, the firm provides upfront financing to mining operators in return for the right to purchase a percentage of future metal production at predetermined prices. This structure allows Royal Gold to benefit from production upside while minimizing direct exposure to the operational complexities of mine ownership. The company’s portfolio includes interests in over 200 streams and royalties across various regions, including North America, South America, Europe, Africa, and Australia.
For investors and stakeholders looking to navigate the evolving landscape of the precious metals market, Royal Gold’s recent activities and performance metrics highlight a promising trajectory amidst global economic uncertainties.
