AngloGold Ashanti (NYSE:AU) Hits New 12-Month High - Should You Buy?

Key Points

• AngloGold Ashanti shares hit a new 12-month high at $73.22 during trading, closing at $71.79 with significant volume, indicating a strong interest in the stock.
• Analysts have shown a positive outlook, with four upgrading the stock to a Buy rating and a price target consensus of $49.60, despite mixed performance in recent earnings.
• The company recently raised its semi-annual dividend to $0.80 per share, reflecting confidence in financial strength with a high dividend yield of 610.0%.

AngloGold Ashanti PLC (NYSE:AU - Get Free Report) shares reached a new 52-week high during trading on Thursday . The stock traded as high as $73.22 and last traded at $71.79, with a volume of 2778390 shares traded. The stock had previously closed at $70.33.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Wall Street Zen raised AngloGold Ashanti from a "hold" rating to a "buy" rating in a research report on Friday, September 26th. Roth Capital reaffirmed a "buy" rating on shares of AngloGold Ashanti in a report on Friday, August 1st. Scotiabank reaffirmed a "sector perform" rating and issued a $55.00 target price on shares of AngloGold Ashanti in a report on Monday, August 11th. Zacks Research upgraded shares of AngloGold Ashanti from a "strong sell" rating to a "hold" rating in a research note on Monday. Finally, JPMorgan Chase & Co. lifted their price objective on shares of AngloGold Ashanti from $58.00 to $63.00 and gave the company an "overweight" rating in a research note on Tuesday, July 15th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, AngloGold Ashanti presently has a consensus rating of "Hold" and an average price target of $49.60.

AngloGold Ashanti Price Performance

The stock has a fifty day simple moving average of $58.90 and a two-hundred day simple moving average of $48.41. The company has a market cap of $30.13 billion, a PE ratio of 19.09 and a beta of 0.53. The company has a current ratio of 2.99, a quick ratio of 2.22 and a debt-to-equity ratio of 0.22.

AngloGold Ashanti (NYSE:AU - Get Free Report) last posted its quarterly earnings results on Friday, August 1st. The mining company reported $1.25 earnings per share for the quarter, missing analysts' consensus estimates of $1.31 by ($0.06). AngloGold Ashanti had a net margin of 23.60% and a return on equity of 22.54%. The business had revenue of $2.45 billion during the quarter, compared to analysts' expectations of $2.29 billion. On average, equities analysts predict that AngloGold Ashanti PLC will post 3.83 EPS for the current fiscal year.

AngloGold Ashanti Increases Dividend

The business also recently announced a semi-annual dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a dividend of $0.80 per share. This represents a dividend yield of 610.0%. The ex-dividend date was Friday, August 22nd. This is an increase from AngloGold Ashanti's previous semi-annual dividend of $0.69. AngloGold Ashanti's payout ratio is presently 85.11%.

Institutional Trading of AngloGold Ashanti

Institutional investors have recently added to or reduced their stakes in the stock. Global Trust Asset Management LLC purchased a new stake in AngloGold Ashanti during the first quarter worth about $30,000. MJT & Associates Financial Advisory Group Inc. purchased a new stake in shares of AngloGold Ashanti during the 1st quarter worth approximately $30,000. Financial Management Professionals Inc. purchased a new stake in shares of AngloGold Ashanti during the 2nd quarter worth approximately $30,000. SVB Wealth LLC purchased a new stake in shares of AngloGold Ashanti during the 1st quarter worth approximately $32,000. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of AngloGold Ashanti by 30.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,023 shares of the mining company's stock worth $47,000 after acquiring an additional 238 shares in the last quarter. Hedge funds and other institutional investors own 36.09% of the company's stock.

AngloGold Ashanti Company Profile

AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania.

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