Why DRDGOLD Limited (DRD) Is Getting Lifted Today

DRDGOLD Limited (NYSE:DRD) is among the top gainers of the stock market today, skyrocketing 4.65% or (0.1 points) to $2.25 from its previous close of $2.15. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 117765 contracts so far this session. DRD shares had a relatively better volume day versus average trading capacity of 154.35 thousand shares, but with a 38.89 million float and a 14.97% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for DRD stock indicates that the average analyst price target is $3.85 per share. This means the stock has a potential increase of 71.11% from where the DRD share price has been trading recently which is between $2.11 and $2.17. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $2.49.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Does DRDGOLD Limited’s (NYSE:DRD) CEO Pay Compare Well With Peers?” and dated May 30, 2019.

During the recent trading session for DRDGOLD Limited (NYSE:DRD), the company witnessed their stock rise $0.27 over a week and surge $0.43 from the price 20 days ago. When compared to their established 52-week high of $2.95, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/13/18. The recent low of $1.64 stood for a -23.73% since 05/22/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of -1 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for DRDGOLD Limited, the two-week RSI stands at 73.85. This figure suggests that DRD stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current DRD readings is similarly very revealing as it has a stochastic reading of 91.73% at this stage. This figure means that DRD share price today is being oversold.

Technical chart claims that DRDGOLD Limited (DRD) would settle between $2.18/share to $2.2/share level. However, if the stock price goes below the $2.12 mark, then the market for DRDGOLD Limited becomes much weaker. If that happens, the stock price might even plunge as low as $2.08 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.17. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Macquarie, assumed coverage of DRD assigning Outperform rating, according to their opinion released on March 08. HSBC Securities analysts bumped their rating on DRDGOLD Limited (NYSE:DRD) stock from Reduce to Hold in a separate flash note issued to investors on May 05. Analysts at JP Morgan lowered the stock to a Underweight call from its previous Neutral recommendation, in a research note that dated back to July 12.

Moving on, DRD stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.98 while for the average stock in the same group, the multiple is 3.77. DRDGOLD Limited current P/E ratio of 165.24 means it is trading at a premium against its industry’s 2.08. In the past 5 years, this ratio for the stock has been fluctuating between 12.93 and 126.62.