The stock price of New Gold Inc (AMEX: NGD) has surged by 3.76 when compared to previous closing price of 3.93, but the company has seen a 21.72% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-05-05 that New Gold had a solid Q1-25 performance despite being the weakest quarter of the year, reporting positive free cash flow and better-than-expected operational results at New Afton. Importantly, C-Zone remains on track to ramp up by early 2026, allowing for exponential growth in free cash flow generation, with Rainy River moving into higher grades with stripping complete. In this update, we’ll dig into the Q1 results, recent developments, and whether NGD is offering an adequate margin of safety at current levels.
Is It Worth Investing in New Gold Inc (AMEX: NGD) Right Now?
New Gold Inc (AMEX: NGD) has a higher price-to-earnings ratio of 24.43x compared to its average ratio. NGD has 36-month beta value of 0.42. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 3 as “overweight,” 2 as “hold,” and 1 as “sell.”
The public float for NGD is 760.39M, and currently, short sellers hold a 1.62% ratio of that float. The average trading volume of NGD on May 06, 2025 was 21.98M shares.
NGD’s Market Performance
NGD’s stock has seen a 21.72% increase for the week, with a 35.47% rise in the past month and a 34.57% gain in the past quarter. The volatility ratio for the week is 7.39%, and the volatility levels for the past 30 days are at 6.79% for New Gold Inc The simple moving average for the last 20 days is 13.82% for NGD stock, with a simple moving average of 42.58% for the last 200 days.
Analysts’ Opinion of NGD
Many brokerage firms have already submitted their reports for NGD stocks, with BofA Securities repeating the rating for NGD by listing it as a “Buy.” The predicted price for NGD in the upcoming period, according to BofA Securities is $3.90 based on the research report published on March 26, 2025 of the current year 2025.
NGD Trading at 22.64% from the 50-Day Moving Average
After a stumble in the market that brought NGD to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 2.39% of gains for the given period.
Volatility was left at 6.79%, however, over the last 30 days, the volatility rate increased by 7.39%, as shares surge +35.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +42.43% upper at present.
During the last 5 trading sessions, NGD rose by +20.75%, which changed the moving average for the period of 200-days by +78.19% in comparison to the 20-day moving average, which settled at $3.58. In addition, New Gold Inc saw 64.42% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for NGD
Current profitability levels for the company are sitting at:
- 0.19 for the present operating margin
- 0.27 for the gross margin
The net margin for New Gold Inc stands at 0.14. The total capital return value is set at 0.1. Equity return is now at value 14.62, with 5.91 for asset returns.
Based on New Gold Inc (NGD), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at 0.84. The debt to equity ratio resting at 0.49. The interest coverage ratio of the stock is 8.13.
Currently, EBITDA for the company is 331.67 million with net debt to EBITDA at 0.78. When we switch over and look at the enterprise to sales, we see a ratio of 3.76. The receivables turnover for the company is 90.68for trailing twelve months and the total asset turnover is 0.44. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.68.
Conclusion
To put it simply, New Gold Inc (NGD) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
