RGLD Should I Buy
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Royal Gold Inc (RGLD) is not a strong buy for a long-term beginner investor at this moment. While hedge funds are buying and the company has shown significant revenue growth, the declining net income, EPS, and gross margin, coupled with mixed analyst ratings and technical indicators, suggest a cautious approach. The lack of strong proprietary trading signals and the absence of recent congress trading data further support holding off on a buy decision.
The MACD is negatively contracting with a histogram of -4.112, indicating bearish momentum. RSI is neutral at 36.836, and moving averages are converging, showing no clear trend. The stock is trading below the pivot level of 240.58, with key support at 218.413 and resistance at 262.747.
Hedge funds are heavily buying, with a 1744.44% increase in the last quarter. The stock has shown relative strength in the precious metals sector compared to peers. Revenue growth of 85.29% YoY in Q4 2025 is a strong indicator of operational performance.
Net income dropped by -12.85% YoY, and EPS fell by -28.83% YoY. Gross margin declined by -8.17% YoY, indicating operational inefficiencies. Analysts have mixed ratings, with some downgrades and reduced price targets. The stock is currently showing bearish technical indicators.
In Q4 2025, revenue increased by 85.29% YoY to $375.32M. However, net income dropped by -12.85% YoY to $93.61M, and EPS fell by -28.83% YoY to 1.16. Gross margin declined to 64.54%, down -8.17% YoY.
Analysts have mixed views. Scotiabank downgraded the stock to Sector Perform with a $335 price target. BofA maintains an Underperform rating with price targets ranging from $256 to $278. CIBC raised its target to $330 but kept a Neutral rating. Analysts express concerns about valuation and growth prospects, but some see potential upside due to higher gold price forecasts.
