RGLD Should I Buy
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Royal Gold Inc (RGLD) is not a strong buy for a beginner investor with a long-term strategy at this time. While the company has shown strong revenue growth in 2025, its declining net income, EPS, and gross margin, along with mixed analyst ratings and no strong proprietary trading signals, suggest a cautious approach. The technical indicators and options data do not indicate a compelling entry point for long-term investment.
The technical indicators show mixed signals. The MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral at 43.788, suggesting no clear overbought or oversold condition. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below the pivot level of 286.604, with key support at 272.309. Overall, the technicals do not strongly support a buy decision.
Hedge funds are significantly increasing their positions, with a 1744.44% increase in buying over the last quarter.
The company declared a quarterly dividend of $0.475 per share, reflecting a forward yield of 0.65%.
Strong revenue growth in 2025, with a record $1 billion revenue year.
Declining net income (-12.85% YoY), EPS (-28.83% YoY), and gross margin (-8.17% YoY) in Q4
Analyst ratings are mixed, with some downgrades and concerns about over-optimistic valuations.
No recent congress trading data or strong proprietary trading signals to support a buy decision.
In Q4 2025, Royal Gold reported an 85.29% YoY increase in revenue to $375.32 million. However, net income dropped by 12.85% YoY to $93.61 million, and EPS fell by 28.83% YoY to 1.16. Gross margin also declined to 64.54%, down 8.17% YoY. These mixed financial results highlight growth in revenue but challenges in profitability.
Analyst ratings are mixed. Scotiabank downgraded the stock to Sector Perform, while BofA maintains an Underperform rating despite raising its price target to $278. CIBC raised its target to $330 but maintains a Neutral rating. Analysts are cautious about the company's valuation and growth prospects, with some concerns about over-optimistic expectations.
