AngloGold Ashanti (NYSE:AU) Announces Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Key Points

• AngloGold Ashanti beat earnings expectations for the quarter, reporting $2.52 EPS versus the $2.27 consensus estimate. Revenue came in at $3.24 billion, slightly below the $3.26 billion forecast.
• The company also announced a much larger quarterly dividend of $1.16 per share, up from $0.17 previously. The dividend implies a 4.3% annualized yield.
• Market sentiment remains mixed: analysts’ average rating is “Hold” with a consensus price target of $112.20, while institutional investors such as State Street and AQR significantly increased their stakes.

AngloGold Ashanti (NYSE:AU - Get Free Report) announced its quarterly earnings results on Friday. The mining company reported $2.52 EPS for the quarter, beating the consensus estimate of $2.27 by $0.25, Zacks reports. The business had revenue of $3.24 billion for the quarter, compared to analyst estimates of $3.26 billion. AngloGold Ashanti had a return on equity of 29.11% and a net margin of 26.65%.

AngloGold Ashanti Price Performance

AU traded up $6.91 during trading on Friday, hitting $107.14. The company's stock had a trading volume of 2,749,655 shares, compared to its average volume of 2,277,882. The firm's 50 day moving average price is $101.71 and its two-hundred day moving average price is $93.62. The company has a quick ratio of 2.20, a current ratio of 2.87 and a debt-to-equity ratio of 0.20. AngloGold Ashanti has a 12 month low of $38.61 and a 12 month high of $129.14. The stock has a market capitalization of $54.09 billion, a price-to-earnings ratio of 20.64 and a beta of 0.60.

AngloGold Ashanti Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 29th will be given a $1.16 dividend. This represents a $4.64 annualized dividend and a yield of 4.3%. The ex-dividend date is Friday, May 29th. This is a positive change from AngloGold Ashanti's previous quarterly dividend of $0.17. AngloGold Ashanti's dividend payout ratio is presently 133.33%.

Analysts Set New Price Targets

Several brokerages recently commented on AU. Weiss Ratings lowered AngloGold Ashanti from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, May 1st. Roth Mkm reaffirmed a "buy" rating and issued a $122.00 price target on shares of AngloGold Ashanti in a research note on Friday, February 20th. Zacks Research lowered AngloGold Ashanti from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 23rd. Scotiabank decreased their price target on AngloGold Ashanti from $134.00 to $133.00 and set a "sector outperform" rating on the stock in a research note on Friday, March 20th. Finally, Citigroup boosted their price target on AngloGold Ashanti from $105.00 to $120.00 and gave the company a "buy" rating in a research note on Tuesday, January 20th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, AngloGold Ashanti currently has an average rating of "Hold" and a consensus target price of $112.20.

Hedge Funds Weigh In On AngloGold Ashanti

Several institutional investors have recently bought and sold shares of AU. State Street Corp raised its position in AngloGold Ashanti by 1,175.7% in the 2nd quarter. State Street Corp now owns 4,967,173 shares of the mining company's stock valued at $226,354,000 after purchasing an additional 4,577,807 shares during the last quarter. AQR Capital Management LLC raised its position in shares of AngloGold Ashanti by 5,109.9% during the fourth quarter. AQR Capital Management LLC now owns 2,082,326 shares of the mining company's stock worth $179,286,000 after acquiring an additional 2,042,357 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of AngloGold Ashanti during the third quarter worth $87,236,000. Bridgewater Associates LP raised its position in shares of AngloGold Ashanti by 253.6% during the fourth quarter. Bridgewater Associates LP now owns 822,908 shares of the mining company's stock worth $70,178,000 after acquiring an additional 590,154 shares during the last quarter. Finally, Credit Agricole S A bought a new stake in shares of AngloGold Ashanti during the third quarter worth $36,112,000. Institutional investors own 36.09% of the company's stock.

AngloGold Ashanti Company Profile

AngloGold Ashanti is a global gold mining company engaged in the exploration, development, production, processing and sale of gold. Headquartered in Johannesburg, South Africa, the company’s core activities span the full mining value chain from greenfield exploration and mine development through to ore processing and rehabilitation. Gold is the primary commodity produced, with individual operations sometimes yielding other by‑products depending on local geology and processing methods.

The company was formed in 2004 through the merger of AngloGold and Ashanti Goldfields, creating a diversified international gold producer.

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