Kirkland Lake Gold (NYSE:KL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. The brokerage presently has a $42.00 price target on the stock. Zacks Investment Research‘s target price indicates a potential upside of 6.11% from the stock’s previous close.
According to Zacks, “Earnings estimates for Kirkland Lake Gold’s for the second quarter have been stable over the past month. The company is likely to benefit from continued investment in its projects. Higher gold prices are also expected to drive its earnings in 2021. It also has a strong balance sheet. However, the company faces operational headwinds at the Holt Mine Complex which is likely to exert pressure on margins in 2021. Its operations at the Taylor Mine and Holt Mine were suspended due to the coronavirus pandemic. Rising cost of production is another concern, which may hurt margins. The rise in operations cost partly indicates lower sales and higher operating cash costs. The coronavirus pandemic may also hurt gold demand in the short term. An expected slowdown in demand may also have an impact on the company’s production and sales.”
A number of other research analysts have also issued reports on the stock. Scotiabank lowered their target price on shares of Kirkland Lake Gold from $68.00 to $61.00 and set an “outperform” rating on the stock in a research note on Tuesday, April 6th. Canaccord Genuity reiterated a “buy” rating on shares of Kirkland Lake Gold in a research note on Monday, April 12th. TD Securities upgraded Kirkland Lake Gold to a “buy” rating in a research note on Friday, April 16th. Finally, National Bank Financial reaffirmed a “sector perform” rating on shares of Kirkland Lake Gold in a research report on Friday, April 23rd. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and seven have assigned a buy rating to the stock. The company presently has a consensus rating of “Buy” and an average price target of $66.89.
Kirkland Lake Gold (NYSE:KL) last posted its earnings results on Thursday, May 6th. The company reported $0.63 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.67 by ($0.04). Kirkland Lake Gold had a net margin of 30.36% and a return on equity of 18.12%. The business had revenue of $551.80 million during the quarter, compared to analyst estimates of $662.39 million. During the same quarter last year, the firm earned $0.70 earnings per share. Kirkland Lake Gold’s revenue was down .5% compared to the same quarter last year. As a group, analysts expect that Kirkland Lake Gold will post 3.06 EPS for the current fiscal year.
Large investors have recently bought and sold shares of the stock. HM Payson & Co. boosted its stake in Kirkland Lake Gold by 22.7% in the 1st quarter. HM Payson & Co. now owns 2,700 shares of the company’s stock valued at $91,000 after buying an additional 500 shares in the last quarter. Advisory Services Network LLC lifted its holdings in shares of Kirkland Lake Gold by 183.0% during the first quarter. Advisory Services Network LLC now owns 26,978 shares of the company’s stock valued at $912,000 after acquiring an additional 17,445 shares during the period. Tectonic Advisors LLC bought a new position in shares of Kirkland Lake Gold during the first quarter valued at $248,000. Optiver Holding B.V. acquired a new stake in shares of Kirkland Lake Gold in the 1st quarter valued at $1,764,000. Finally, Millennium Management LLC grew its holdings in shares of Kirkland Lake Gold by 42.5% in the 1st quarter. Millennium Management LLC now owns 457,437 shares of the company’s stock worth $15,461,000 after purchasing an additional 136,391 shares during the last quarter. 47.66% of the stock is owned by hedge funds and other institutional investors.
Kirkland Lake Gold Company Profile
Kirkland Lake Gold Ltd. engages in the acquisition, production, and operation of gold properties. The company holds interest in the Fosterville Mine located in the State of Victoria, Australia; and the Macassa Mine situated in the Municipality of Kirkland Lake, Ontario, Canada, as well as the Detour Lake Mine located in northeastern Ontario, Canada.
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