Is Buying Stock Like Randgold Resources Ltd. (ADR) Good Idea After Today’s Bearish Options Activity?

 Is Buying Stock Like Randgold Resources Ltd. (ADR) Good Idea After Today's Bearish Options Activity?

In today’s session Randgold Resources Ltd. (ADR) (GOLD) recorded an unusually high (1,072) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious GOLD decrease. With 1,072 contracts traded and 7164 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: GOLD161021P00095000 closed last at: $6.1 or 281.3% up. About 945,804 shares traded hands. Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) has risen 0.75% since March 3, 2016 and is uptrending. It has underperformed by 7.60% the S&P500.

Analysts await Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) to report earnings on November, 3. They expect $1.13 earnings per share, up 151.11% or $0.68 from last year’s $0.45 per share. GOLD’s profit will be $104.83M for 19.32 P/E if the $1.13 EPS becomes a reality. After $0.52 actual earnings per share reported by Randgold Resources Ltd. (ADR) for the previous quarter, Wall Street now forecasts 117.31% EPS growth.

Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) Ratings Coverage

Out of 14 analysts covering Randgold-Resources (NASDAQ:GOLD), 6 rate it a “Buy”, 0 “Sell”, while 8 “Hold”. This means 43% are positive. Randgold-Resources has been the topic of 25 analyst reports since July 24, 2015 according to StockzIntelligence Inc. The firm has “Neutral” rating given on Thursday, April 7 by JP Morgan. As per Friday, September 9, the company rating was upgraded by UBS. On Monday, March 14 the stock rating was downgraded by BMO Capital Markets to “Market Perform”. HSBC downgraded the shares of GOLD in a report on Monday, October 26 to “Hold” rating. The rating was upgraded by Numis Securities on Friday, November 6 to “Add”. RBC Capital Markets upgraded Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) on Monday, August 24 to “Outperform” rating. Vetr downgraded the stock to “Buy” rating in Thursday, September 17 report. The firm has “Buy” rating by Citigroup given on Friday, July 24. Deutsche Bank downgraded the shares of GOLD in a report on Tuesday, February 9 to “Hold” rating. Berenberg initiated the stock with “Hold” rating in Wednesday, September 7 report.

According to Zacks Investment Research, “Randgold Resources is an international gold mining and exploration business. It has to date discovered the 7 Moz Morila deposit in southern Mali, the plus 5 Moz Yalea deposit in western Mali and the 3 Moz Tongon deposit in the Côte d’Ivoire. The Company successfully developed the Morila deposit into one of the world’s largest and highest-margin gold mines. In addition, Randgold Resources has a portfolio of prospective exploration projects across Africa in Mali, Côte d’Ivoire, Senegal, Burkina Faso, Ghana and Tanzania.”

Randgold Resources Limited is engaged in the gold mining, exploration and related activities. The company has a market cap of $8.10 billion. The Company’s activities are focused on West and Central Africa. It has a 43.27 P/E ratio. The Firm operates through the gold mining segment.

GOLD Company Profile

Randgold Resources Limited, incorporated on August 4, 1995, is engaged in gold mining, exploration and related activities. The Company’s activities are focused on West and Central Africa. The Firm operates through the gold mining segment. The Firm operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Firm is exploring in over four African countries, such as Mali, Senegal, Cote d’Ivoire and the Democratic Republic of Congo (DRC), with a portfolio of approximately 141 targets on over 12,310 kilometers of ground holding, of these 99 are satellite targets while 42 are stand-alone operations. The Firm also holds an interest in the Massawa project.

More recent Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) news were published by: Marketwatch.com which released: “Randgold Resources Ltd. ADR” on December 21, 2009. Also Quotes.Wsj.com published the news titled: “DOW JONES, A NEWS CORP COMPANY” on February 11, 2011. Etfdailynews.com‘s news article titled: “The Gold Mining Stock To Own Now” with publication date: July 28, 2015 was also an interesting one.

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