Royal Gold Stock Upgraded as Shares Consolidate Atop Chart Support

The $80 level has been a key price point for RGLD stock

Raymond James believes it's time to buy precious metals stock Royal Gold, Inc (NASDAQ:RGLD). The brokerage firm upgraded the shares to "outperform" from "market perform," and increased its price target to $98 from $90 -- territory not charted since October 2012. A number of factors were listed in the bullish note, including the company's strong balance sheet, which should give it more flexibility in the future for investments and a higher dividend. RGLD stock is trading up 0.6% at $84.19 so far this morning.

The equity's chart also suggests it could be a good time to buy. For instance, the shares have been consolidating atop the $80 level in recent months. This round-number mark is the site of the stock's 2014 high, meaning it could now serve as chart support. Moreover, the rising 50-week moving average currently comes in near the $83 level, just below RGLD's current perch. This trendline helped guide the security higher in early 2017.

Other analysts are mixed on the stock. Of the eight brokerage firms tracking Royal Gold, half say to buy and the other half have just "hold" ratings in place. The average 12-month price target, meanwhile, stands up at $95.04.

There's been some notable activity from short sellers, though. The number of RGLD shares that are sold short increased by 13% in the last two reporting periods, and it would now take these bears a week to cover their positions, based on average daily trading volumes.