Lundin Gold (TSE:LUG) Hits New 12-Month High – Should You Buy?

Lundin Gold Inc. (TSE:LUG)’s stock price hit a new 52-week high during trading on Wednesday . The stock traded as high as C$36.08 and last traded at C$35.99, with a volume of 77480 shares trading hands. The stock had previously closed at C$34.99.

Analysts Set New Price Targets

A number of equities analysts have weighed in on LUG shares. CIBC upped their price target on Lundin Gold from C$34.00 to C$41.00 in a report on Monday, December 2nd. Scotiabank raised their price target on shares of Lundin Gold from C$30.00 to C$31.50 in a report on Wednesday, January 15th. Cormark upgraded shares of Lundin Gold from a “market perform” rating to a “buy” rating and boosted their price objective for the stock from C$35.00 to C$38.00 in a report on Friday, January 10th. TD Securities upped their price objective on shares of Lundin Gold from C$27.00 to C$38.00 in a research report on Friday, October 18th. Finally, BMO Capital Markets lowered Lundin Gold from an “outperform” rating to a “market perform” rating in a research report on Tuesday, December 10th. Five research analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Lundin Gold presently has a consensus rating of “Moderate Buy” and an average price target of C$33.30.

Lundin Gold Price Performance

The company has a quick ratio of 1.41, a current ratio of 1.98 and a debt-to-equity ratio of 14.28. The company has a 50 day simple moving average of C$32.45 and a 200-day simple moving average of C$29.59. The stock has a market cap of C$8.51 billion, a price-to-earnings ratio of 27.49 and a beta of 1.23.

Lundin Gold (TSE:LUG) last posted its quarterly earnings results on Thursday, November 7th. The company reported C$0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of C$0.60 by C$0.16. The business had revenue of C$440.77 million for the quarter. Lundin Gold had a return on equity of 22.88% and a net margin of 24.30%. As a group, research analysts anticipate that Lundin Gold Inc. will post 2.5603448 EPS for the current fiscal year.

Lundin Gold Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, December 20th were paid a $0.20 dividend. The ex-dividend date was Thursday, December 5th. This represents a $0.80 dividend on an annualized basis and a yield of 2.26%. Lundin Gold’s payout ratio is currently 82.95%.

Insider Activity

In related news, Director Pablo Mir sold 11,535 shares of the stock in a transaction dated Tuesday, January 7th. The shares were sold at an average price of C$30.78, for a total value of C$355,001.16. Corporate insiders own 58.72% of the company’s stock.

About Lundin Gold

Lundin Gold Inc operates as a mining company in Canada. The company holds interests in 28 metallic mineral concessions and three construction material concessions covering an area of approximately 64,454 hectares located in Southeast Ecuador. It primary holds 100% interests in the Fruta del Norte gold project that comprising seven concessions covering an area of approximately 5,566 hectares located near the city of Loja in Ecuador.