Novagold Resources (NYSEAMERICAN:NG) Shares Down 7.1% – Should You Sell?

Shares of Novagold Resources Inc. (NYSEAMERICAN:NG) (TSE:NG) dropped 7.1% during mid-day trading on Wednesday . The company traded as low as $6.71 and last traded at $6.7040. 1,067,973 shares changed hands during trading, a decline of 71% from the average daily volume of 3,662,889 shares. The stock had previously closed at $7.22.

Analysts Set New Price Targets

A number of equities analysts have recently commented on NG shares. Scotiabank upgraded Novagold Resources to a “strong-buy” rating in a report on Wednesday, May 6th. Canaccord Genuity Group initiated coverage on Novagold Resources in a report on Friday, March 27th. They set a “speculative buy” rating and a $13.00 target price for the company. Zacks Research raised shares of Novagold Resources from a “strong sell” rating to a “hold” rating in a research report on Monday, March 30th. Morgan Stanley began coverage on shares of Novagold Resources in a report on Thursday, April 9th. They issued an “overweight” rating and a $13.80 price target on the stock. Finally, Royal Bank Of Canada reduced their price target on shares of Novagold Resources from $18.00 to $14.00 and set an “outperform” rating on the stock in a research report on Thursday, March 19th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $13.26.

Novagold Resources Price Performance

The company has a 50-day moving average price of $8.41 and a two-hundred day moving average price of $9.48. The company has a debt-to-equity ratio of 0.38, a current ratio of 88.72 and a quick ratio of 88.72. The company has a market cap of $2.79 billion, a PE ratio of -24.54 and a beta of 0.77.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Van ECK Associates Corp lifted its stake in shares of Novagold Resources by 29.2% in the third quarter. Van ECK Associates Corp now owns 8,159,352 shares of the mining company’s stock worth $71,802,000 after acquiring an additional 1,842,582 shares in the last quarter. Vanguard Group Inc. grew its stake in Novagold Resources by 23.9% during the 3rd quarter. Vanguard Group Inc. now owns 14,587,516 shares of the mining company’s stock valued at $128,840,000 after purchasing an additional 2,815,780 shares in the last quarter. Tudor Investment Corp ET AL grew its stake in Novagold Resources by 89.5% during the 3rd quarter. Tudor Investment Corp ET AL now owns 1,080,198 shares of the mining company’s stock valued at $9,506,000 after purchasing an additional 510,253 shares in the last quarter. Capital World Investors increased its holdings in Novagold Resources by 12.8% during the 3rd quarter. Capital World Investors now owns 17,666,000 shares of the mining company’s stock worth $155,461,000 after purchasing an additional 2,000,000 shares during the last quarter. Finally, TD Asset Management Inc increased its holdings in Novagold Resources by 8.3% during the 3rd quarter. TD Asset Management Inc now owns 905,975 shares of the mining company’s stock worth $8,009,000 after purchasing an additional 69,249 shares during the last quarter. 57.56% of the stock is currently owned by hedge funds and other institutional investors.

About Novagold Resources

Novagold Resources Inc is a mineral exploration and development company headquartered in Vancouver, British Columbia. The firm is focused on advancing large-scale precious metals projects through disciplined project management, environmental stewardship and community engagement. Novagold maintains a lean corporate structure while leveraging partnerships and industry expertise to advance its projects toward production.

The company’s flagship asset is the Donlin Gold project in Alaska, a 50/50 joint venture with Barrick Gold Corporation.