Shares of Kinross Gold Corporation (NYSE: KGC) have been downgraded from a strong-buy to a buy rating by Wall Street Zen, according to a report published on Sunday. This adjustment follows a series of recent assessments from various research firms, each evaluating the mining company’s stock performance and future outlook.
On October 31, Weiss Ratings reiterated a “buy (a)” rating for Kinross Gold, while Scotiabank maintained an “outperform” rating on October 23. Canaccord Genuity Group raised their target price for the stock from $28.00 to $29.50, assigning a “buy” designation on August 7. CIBC increased their price target from $36.00 to $37.00, also giving Kinross an “outperform” rating on November 20. In a more recent assessment, Zacks Research upgraded the stock from a “hold” rating to a “strong-buy” on October 17.
Overall, four analysts have rated Kinross Gold as a strong buy, nine have issued a buy rating, and three have provided a hold rating. Data from MarketBeat.com indicates a consensus rating of “buy” with an average price target of $27.69.
Financial Performance and Dividends
Kinross Gold released its quarterly earnings results on November 4, reporting an earnings per share (EPS) of $0.44, which surpassed analyst expectations of $0.39 by five cents. The company generated revenue of $1.82 billion for the quarter, exceeding the consensus estimate of $1.72 billion. Kinross Gold’s net margin stood at 25.18%, with a return on equity of 20.04%. This quarter’s revenue reflected a year-over-year increase of 25.8%, compared to $0.24 EPS during the same period last year.
In addition to its earnings report, Kinross Gold announced a quarterly dividend of $0.035, set to be paid on December 10, 2023. Shareholders of record as of November 26 will receive this dividend, marking an increase from the previous quarterly payment of $0.03. This adjustment results in an annualized dividend of $0.14 and a yield of 0.5%. The company’s payout ratio currently stands at 9.79%.
Institutional Activity Surrounding Kinross Gold
Recent activity from institutional investors and hedge funds indicates a growing interest in Kinross Gold. For instance, Laird Norton Wetherby Wealth Management LLC increased its stake by 2.1% in the third quarter, now owning 25,309 shares valued at approximately $629,000 after acquiring an additional 521 shares.
Similarly, Ballentine Partners LLC boosted its holdings by 1.8%, bringing its total to 32,144 shares worth around $799,000. Cadence Wealth Management LLC and Parallel Advisors LLC also expanded their positions by 1.3% and 7.0%, respectively. Notably, Harvest Fund Management Co. Ltd significantly increased its holdings by 85.2%, now owning 1,280 shares valued at $32,000. Institutional investors and hedge funds collectively hold approximately 63.69% of Kinross Gold’s stock.
Kinross Gold Corporation, headquartered in Toronto, Canada, focuses on the acquisition, exploration, and development of gold properties across several countries, including the United States, Brazil, Chile, Canada, and Mauritania. The company operates notable mines such as the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and Bald Mountain mines in Nevada.
This recent downgrade and the accompanying financial updates highlight the evolving landscape for Kinross Gold and reflect broader trends affecting the mining sector. Investors are encouraged to stay informed about future developments as analysts continue to monitor the company’s performance and market position.
