Increased Interest in Barrick Gold Call Options

Barrick Gold Corp (NYSE:GOLD) experienced a significant rise in options trading on Thursday, with investors purchasing 66,516 call options for the stock. This is an increase of about 37% compared to the average daily volume, which typically stands at around 48,697 call options.

Barrick Gold Stock Performance

On Thursday, shares of Barrick Gold traded down by $0.48, lowering their price to $20.32. The trading volume for the day was 29,505,639 shares, exceeding the average volume of 21,093,443 shares. Barrick Gold has a market capitalization of $35.62 billion, a price-to-earnings (P/E) ratio of 24.74, and a price-to-earnings-growth (PEG) ratio of 0.47. Additionally, the company has a beta of 0.55. Over the past year, Barrick Gold's stock has seen a low of $13.76 and a high of $21.35. Financial ratios include a debt-to-equity ratio of 0.15 and liquidity ratios with a quick ratio of 2.31 and a current ratio of 3.01. The stock's recent 50-day simple moving average is $20.16, while the 200-day simple moving average is $18.30.

Earnings Results and Performance Insights

Barrick Gold recently shared its earnings results on August 12. The gold and copper producer reported earnings per share (EPS) of $0.32 for the quarter, surpassing analysts' expectations of $0.27 by $0.05. The company generated $3.16 billion in revenue for the quarter, also exceeding the forecast of $3.13 billion. Barrick Gold recorded a return on equity of 5.53% and a net margin of 12.78%. Year-over-year, revenue increased by 11.6%, compared to the same quarter from the previous year, when the firm reported an EPS of $0.19. Analysts predict Barrick Gold will post an EPS of 1.27 for the current year.

Dividend Announcement

Recently, Barrick Gold declared a quarterly dividend, which was paid on September 16. Shareholders of record on August 30 received a dividend of $0.10 per share. This reflects an annualized dividend of $0.40, providing a yield of 1.97%. The dividend payout ratio stands at 48.78%.

Institutional Investments in Barrick Gold

Numerous institutional investors and hedge funds have recently adjusted their holdings in Barrick Gold. For instance, First Eagle Investment Management LLC increased its investment in Barrick Gold by 31.6% during the first quarter, now owning approximately 58.82 million shares valued at about $978.77 million after acquiring an additional 14.14 million shares. Additionally, EdgePoint Investment Group Inc. enhanced its position by 38.8%, now owning approximately 18.17 million shares valued at $302.37 million after buying an extra 5.08 million shares. Notably, British Columbia Investment Management Corp raised its holdings dramatically by 4,713.3% during the second quarter, now owning 4.14 million shares worth around $69.14 million, which was an increase of 4.06 million shares. Overall, 62.85% of Barrick Gold’s stock is held by institutional investors.

Analyst Ratings and Forecasts

Several research firms have weighed in on Barrick Gold's performance. Argus upgraded its rating from "hold" to "buy," establishing a target price of $24.00 as of August 29. UBS Group also raised its target price from $22.00 to $23.00, maintaining a "buy" rating as of October 15. CIBC increased its target price from $23.00 to $27.00 while designating the stock as an "outperformer" on July 10. Scotiabank and Royal Bank of Canada have adjusted their targets to $25.00 and $22.00, respectively. Currently, two analysts have rated Barrick Gold as a hold, while nine have a buy recommendation. Overall, the consensus rating is "Moderate Buy" with an average target price of $23.60.

Barrick Gold Company Overview

Barrick Gold Corporation is a leading producer in the gold and copper sector, with shares trading on the New York Stock Exchange under the ticker GOLD as well as on the Toronto Stock Exchange under the ticker ABX. The company merged with Randgold Resources in January 2019 and formed a joint venture in July of the same year to combine its gold mining operations in Nevada with those of Newmont Corporation. Barrick Gold holds a majority stake in the venture called Nevada Gold Mines.

Barrick, Gold, Options