AngloGold Ashanti (NYSE:AU) Releases Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• AngloGold Ashanti missed quarterly earnings expectations: EPS came in at $1.98 versus the $2.03 consensus estimate, while revenue of $3.10 billion fell short of analysts’ $3.20 billion forecast.
• Shares declined 3.8% to $79.17 following the results. Institutional investors own 36.09% of the stock, with several major firms increasing their positions.
• The company raised its quarterly dividend to $1.16 per share, representing a $4.64 annualized payout and a 5.9% yield; analysts maintain a “Moderate Buy” consensus with a $110.50 price target.

AngloGold Ashanti (NYSE:AU - Get Free Report) issued its quarterly earnings results on Thursday. The mining company reported $1.98 earnings per share for the quarter, missing the consensus estimate of $2.03 by ($0.05), FiscalAI reports. AngloGold Ashanti had a return on equity of 36.41% and a net margin of 31.11%.The business had revenue of $3.10 billion during the quarter, compared to analyst estimates of $3.20 billion.

AngloGold Ashanti Trading Down 3.8%

Shares of AU stock traded down $3.16 on Friday, hitting $79.17. 7,344,615 shares of the stock traded hands, compared to its average volume of 2,992,036. The firm's 50-day moving average price is $84.53 and its two-hundred day moving average price is $96.27. The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.11 and a current ratio of 2.71. The stock has a market capitalization of $39.97 billion, a PE ratio of 11.61 and a beta of 0.65. AngloGold Ashanti has a twelve month low of $45.36 and a twelve month high of $129.14.

AngloGold Ashanti Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 29th were issued a dividend of $1.16 per share. The ex-dividend date was Friday, May 29th. This represents a $4.64 annualized dividend and a dividend yield of 5.9%. This is a boost from AngloGold Ashanti's previous quarterly dividend of $0.17. AngloGold Ashanti's payout ratio is presently 68.04%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. State Street Corp grew its holdings in shares of AngloGold Ashanti by 0.5% during the 4th quarter. State Street Corp now owns 5,731,937 shares of the mining company's stock worth $488,820,000 after purchasing an additional 26,421 shares during the period. Invesco Ltd. increased its stake in AngloGold Ashanti by 4.5% during the 4th quarter. Invesco Ltd. now owns 2,791,584 shares of the mining company's stock worth $238,066,000 after buying an additional 119,355 shares during the period. AQR Capital Management LLC increased its stake in AngloGold Ashanti by 5,109.9% during the 4th quarter. AQR Capital Management LLC now owns 2,082,326 shares of the mining company's stock worth $179,286,000 after buying an additional 2,042,357 shares during the period. Morgan Stanley boosted its position in AngloGold Ashanti by 27.0% in the 4th quarter. Morgan Stanley now owns 2,038,986 shares of the mining company's stock valued at $173,885,000 after buying an additional 433,654 shares during the period. Finally, Franklin Resources Inc. raised its stake in shares of AngloGold Ashanti by 10.3% in the third quarter. Franklin Resources Inc. now owns 1,849,121 shares of the mining company's stock valued at $129,841,000 after acquiring an additional 173,381 shares in the last quarter. 36.09% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on AU shares. Zacks Research lowered AngloGold Ashanti from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 15th. Citigroup decreased their price objective on shares of AngloGold Ashanti from $130.00 to $125.00 and set a "buy" rating on the stock in a report on Wednesday, July 15th. Roth Capital lowered their price objective on AngloGold Ashanti from $121.00 to $110.00 and set a "buy" rating on the stock in a report on Wednesday, June 24th. Weiss Ratings cut AngloGold Ashanti from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, June 1st. Finally, Wall Street Zen lowered AngloGold Ashanti from a "buy" rating to a "hold" rating in a report on Saturday, June 6th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $110.50.

About AngloGold Ashanti

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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