Heat Check: India Globalization Capital Inc. (IGC) Vs. New Gold Inc. (NGD)

India Globalization Capital Inc. (AMEX: IGC) shares are 106.35% up in the year-to-date (YTD) period and have moved 0.00% or $0.0 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +394.30% lower. Comparatively, the stock is -71.11% down YTD and 121.09% over the trailing 3-month period. If we look at the shorter duration, its week performance is 3.17% and 109.61% over the month.

Analyst Recommendations

0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.30. The forecasts give the India Globalization Capital Inc. stock a price target range of $3.05 on the higher side while at least one analyst think the stock could plunge to a low of $3.05. The two limits represent an upside potential of 57.38% or 57.38%.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 5 over the last 12 months, while SEC filings reveal that there have been 1 insider sales over the same period. Insiders have purchases 1,265,000 shares while those sold by company executives and officers stand at 40,000. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

New Gold Inc. (AMEX:NGD), on the other hand, is trading around $1.61 with a market cap of $1.05B and analyst research firms have a positive stance on its shares. Some analysts are even forecasting $0.1 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the New Gold Inc. (NGD) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

NGD’s operating margin was negative on the trailing 12 months basis, remaining steady at -10.10%, while the operating expenses over the recent quarter were at $45.9 million. This represented a 64.28% of the company’s total revenues which amounted $128.5 million. With this in place, we can see that the company’s diluted EPS declined -$0.07 on the year-over-year period, shrinking to -$0.06 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Mar 2018), the total assets figure advanced to $2.75 billion from $2.46 billion over the previous quarter. The cash flow from operating activities totaled $104.1 million, significantly lower than the $124.5 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$11.4 million.

Major holders

Insiders own 3.60% of the company shares, while shares held by institutions stand at 55.10% with a share float percentage of 674.71M. Investors are also buoyed by the number of investors in a company, with New Gold Inc. having a total of 192 institutions that hold shares in the company. The top two institutional holders are Van Eck Associates Corporation with over 63.07 million shares worth more than $85.14 million. As of Jun 29, 2020, Van Eck Associates Corporation held 9.33% of shares outstanding.

The other major institutional holder is Kopernik Global Investors, LLC, with the investment firm holding over 36.44 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $49.19 million and represent 5.39% of shares outstanding.