AngloGold Ashanti (NYSE:AU) Shares Gap Up - Still a Buy?

Key Points

• AngloGold Ashanti shares jumped 10.8%, opening at $96.29 versus a prior close of $87.59, and last traded around $96.40.
• Analyst sentiment remains positive but has softened, with several firms cutting price targets. The stock carries a “Moderate Buy” consensus rating and an average target of $110.50.
• The company reported quarterly EPS of $1.98, slightly below expectations, while revenue also missed estimates. It declared a quarterly dividend of $0.72 per share, representing a 3.0% annualized yield.

AngloGold Ashanti PLC (NYSE:AU - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $87.59, but opened at $96.29. AngloGold Ashanti shares last traded at $96.4010, with a volume of 1,039,924 shares traded.

Analyst Ratings Changes

AU has been the subject of several recent analyst reports. Weiss Ratings cut shares of AngloGold Ashanti from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday. Wall Street Zen lowered shares of AngloGold Ashanti from a "buy" rating to a "hold" rating in a report on Saturday, June 6th. Scotiabank cut their price target on shares of AngloGold Ashanti from $134.00 to $128.00 and set a "sector outperform" rating on the stock in a research report on Tuesday, July 14th. JPMorgan Chase & Co. decreased their price target on AngloGold Ashanti from $155.00 to $134.00 and set an "overweight" rating for the company in a report on Thursday, July 16th. Finally, Roth Capital lowered their price objective on AngloGold Ashanti from $121.00 to $110.00 and set a "buy" rating for the company in a research report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $110.50.

AngloGold Ashanti Stock Up 10.8%

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 firm's 50 day moving average price is $83.52 and its two-hundred day moving average price is $95.76. The company has a market cap of $48.99 billion, a P/E ratio of 13.00 and a beta of 0.66.

AngloGold Ashanti (NYSE:AU - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The mining company reported $1.98 earnings per share for the quarter, missing analysts' consensus estimates of $2.03 by ($0.05). The firm had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.20 billion. AngloGold Ashanti had a return on equity of 39.54% and a net margin of 32.19%. Equities research analysts anticipate that AngloGold Ashanti PLC will post 8.19 EPS for the current fiscal year.

AngloGold Ashanti Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be given a dividend of $0.72 per share. This represents a $2.88 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Friday, August 21st. AngloGold Ashanti's dividend payout ratio is presently 62.20%.

Institutional Trading of AngloGold Ashanti

Several hedge funds have recently bought and sold shares of AU. Ascentis Independent Advisors acquired a new position in AngloGold Ashanti during the first quarter worth $26,000. Zions Bancorporation National Association UT acquired a new position in shares of AngloGold Ashanti during the fourth quarter valued at about $31,000. Garton & Associates Financial Advisors LLC bought a new stake in shares of AngloGold Ashanti during the fourth quarter worth about $34,000. Mcguire Capital Advisors Inc. bought a new stake in shares of AngloGold Ashanti during the fourth quarter worth about $36,000. Finally, Global Retirement Partners LLC raised its holdings in shares of AngloGold Ashanti by 454.1% in the 4th quarter. Global Retirement Partners LLC now owns 471 shares of the mining company's stock worth $40,000 after acquiring an additional 386 shares during the last quarter. Institutional investors and hedge funds own 36.09% of the company's stock.

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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