Kirkland Lake Gold (NYSE:KL) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Kirkland Lake Gold (NYSE:KL) from a strong-buy rating to a hold rating in a research note released on Wednesday, reports. The brokerage currently has $47.00 target price on the stock.

According to Zacks, “Earnings estimates for Kirkland Lake Gold for the second quarter have moved up in the past month. The company is likely to gain from investment in key growth projects, especially Fosterville. Higher grades on sales volumes at Fosterville is supporting its margins. Further, higher gold prices are likely to support margins. Concerns over the coronavirus pandemic, a slump in crude oil prices, low interest rate environment and geopolitical tensions have triggered the demand for gold. However, the company faces headwinds from lower production at Detour Lake and Macassa. Kirkland Lake Gold’s decision to lower operation at Detour Lake and Macassa is likely to impact the company’s production levels in 2020. The company’s rising costs is another concern. It has also underperformed the industry it belongs to in the past year.”

Several other research firms also recently weighed in on KL. Canaccord Genuity raised Kirkland Lake Gold from a hold rating to a buy rating in a report on Tuesday, March 24th. BMO Capital Markets upgraded Kirkland Lake Gold from a market perform rating to an outperform rating in a research note on Friday, May 29th. TD Securities upgraded Kirkland Lake Gold from a hold rating to a buy rating in a research note on Tuesday, March 17th. Bank of America began coverage on Kirkland Lake Gold in a research note on Tuesday, April 7th. They set a buy rating and a $42.00 price target for the company. Finally, Roth Capital upgraded Kirkland Lake Gold from a neutral rating to a buy rating in a research note on Thursday, June 11th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and eight have given a buy rating to the company. Kirkland Lake Gold currently has an average rating of Buy and a consensus price target of $50.25.

KL stock opened at $45.81 on Wednesday. The company has a market capitalization of $12.96 billion, a P/E ratio of 15.85, a PEG ratio of 5.04 and a beta of 0.84. Kirkland Lake Gold has a twelve month low of $18.02 and a twelve month high of $51.08. The business has a 50 day simple moving average of $39.12 and a 200-day simple moving average of $38.17.

Kirkland Lake Gold (NYSE:KL) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.70 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.82 by ($0.12). The firm had revenue of $554.74 million during the quarter, compared to analyst estimates of $759.84 million. Kirkland Lake Gold had a net margin of 40.05% and a return on equity of 28.04%. Kirkland Lake Gold’s revenue was up 81.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.54 earnings per share. On average, equities research analysts expect that Kirkland Lake Gold will post 3.1 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 13th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.125 per share. The ex-dividend date is Monday, June 29th. This represents a $0.50 dividend on an annualized basis and a yield of 1.09%. This is an increase from Kirkland Lake Gold’s previous quarterly dividend of $0.06. Kirkland Lake Gold’s payout ratio is currently 18.25%.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. WASHINGTON TRUST Co purchased a new stake in shares of Kirkland Lake Gold in the 1st quarter worth about $29,000. America First Investment Advisors LLC purchased a new stake in shares of Kirkland Lake Gold in the first quarter valued at about $30,000. Spectrum Management Group LLC acquired a new stake in shares of Kirkland Lake Gold in the first quarter valued at approximately $31,000. Valeo Financial Advisors LLC increased its stake in shares of Kirkland Lake Gold by 47.3% during the 1st quarter. Valeo Financial Advisors LLC now owns 987 shares of the company’s stock worth $34,000 after purchasing an additional 317 shares in the last quarter. Finally, Quadrant Capital Group LLC acquired a new position in shares of Kirkland Lake Gold during the 4th quarter worth approximately $36,000. Institutional investors and hedge funds own 51.02% of the company’s stock.

Kirkland Lake Gold Company Profile

Kirkland Lake Gold Ltd. engages in the acquisition, exploration, development, and operation of gold properties. It owns and operates four underground gold mines, including the Macassa, Holt, and Taylor mines located in northeastern Ontario, Canada; and the Fosterville Mine located in Victoria, Australia, as well as three milling facilities in Canada and Australia.

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