Kinross Gold Corporation (KGC) squeezes to new HOD, currently up 3.73% at $15.30 per share during Monday afternoon trading. Strength being attributed to a G&B article that says there’s a buzz on some trading desks that the miner is a ripe takeover target.
Shares of Kinross are down almost 23% so far this year, as of Friday. By comparison, Goldcorp Inc. (GG) has gained 2%, Barrick Gold Corp. (ABX) has lost 8% and Newmont Mining Corp. (NEM) is down 17%.[via G&B]: The result is that in price-to-net-asset value, Kinross looks cheap. According to a recent analyst report from Canaccord Genuity, Kinross is trading at a substantial discount to peers in the senior and intermediate gold group.
G&B says that there’s no sense that anything is imminently going to happen to Kinross. But at the same time it notes that “when traders see a valuation gap like that they can’t help but wonder whether somebody is going to try to take advantage.”
KGC shares trade at a trailing P/E of 16.34, a forward P/E of 18.30 and a P/E to Growth ratio of 2.20. The median Wall Street price target on the co.’s stock is $23.62 with a high target of $26.00.
In terms of profitability, Kinros’ trailing 12 profit margin currently stands at nearly 26 percent while operating ones print at 29.24 percent. The co. has $1.47 billion in cash vs. $503 million in debt. Current ratio: 2.88.
Kinross Gold Corporation engages in the gold mining and related activities. The company was founded in 1972 and is based in Toronto, Canada.