Shares of Kinross Gold Corporation (NYSE: KGC, TSE: K) were downgraded from a strong-buy to a buy rating by Wall Street Zen in a report published on November 4, 2023. This change follows a series of mixed evaluations from various research firms, highlighting a complex view of the company’s recent performance and future prospects.
Several analysts have offered their assessments of Kinross Gold in recent weeks. On October 31, Weiss Ratings reaffirmed a “buy (a)” rating, while Scotiabank maintained an “outperform” rating on October 23. Canaccord Genuity Group raised its price target for the stock from $28.00 to $29.50, categorizing it as a buy on August 7. In contrast, CIBC increased their price target from $36.00 to $37.00 with an “outperform” rating on November 20. Additionally, Zacks Research upgraded Kinross Gold from a “hold” to a “strong-buy” rating on October 17.
As it stands, four investment analysts have assigned a strong buy rating, nine have rated it as a buy, and three have issued a hold rating. According to data from MarketBeat.com, Kinross Gold currently holds a consensus rating of “buy” with an average price target of $27.69.
Strong Quarterly Earnings Report
In its latest quarterly earnings report, Kinross Gold revealed a significant performance uptick. For the third quarter, the company reported earnings per share (EPS) of $0.44, surpassing analysts’ expectations of $0.39 by $0.05. Revenue for the quarter reached $1.82 billion, exceeding the consensus estimate of $1.72 billion. The firm achieved a net margin of 25.18% and a return on equity of 20.04%. Notably, the company’s revenue increased by 25.8% compared to the same quarter the previous year, where it earned $0.24 EPS.
Analysts anticipate that Kinross Gold will post an EPS of $0.81 for the current fiscal year, indicating confidence in its ongoing profitability.
Dividend Increase and Institutional Activity
Kinross Gold has also announced a quarterly dividend of $0.035 per share, set to be paid on December 10, 2023. Shareholders of record on November 26 will receive the dividend, reflecting an annualized amount of $0.14 and a dividend yield of 0.5%. This is an increase from the company’s previous quarterly dividend of $0.03, with a payout ratio of 9.79%.
Recent trading activity has seen notable movements among institutional investors. Laird Norton Wetherby Wealth Management LLC increased its stake in Kinross Gold by 2.1%, now holding 25,309 shares valued at approximately $629,000. Ballentine Partners LLC raised its holdings by 1.8%, owning 32,144 shares worth about $799,000. Cadence Wealth Management LLC and Parallel Advisors LLC also boosted their positions in the company by 1.3% and 7.0%, respectively. Harvest Fund Management Co. Ltd made a significant move, increasing its holdings by 85.2%, acquiring 1,280 shares valued at around $32,000.
As of now, institutional investors and hedge funds collectively own 63.69% of Kinross Gold’s stock, underscoring strong institutional confidence in the company’s future.
Kinross Gold Corporation operates a diverse portfolio of mining projects, focusing on gold properties in regions including the United States, Brazil, Chile, Canada, and Mauritania. The company manages several key assets, including the Fort Knox mine in Alaska and the Round Mountain mine in Nevada, contributing to its robust operational footprint.
With a blend of positive earnings results and strategic adjustments in dividend policy, Kinross Gold appears positioned for continued performance in the competitive mining sector.
