AngloGold Ashanti (NYSE:AU) Shares Gap Up - Time to Buy?

Key Points

• AngloGold Ashanti shares gapped up pre-market, opening at $113.30 after a $101.08 close and last trading around $107.31 on about 1.41 million shares.
• Analyst sentiment is mixed—four Buys, two Holds and one Sell—producing an average MarketBeat rating of Hold and an average target price of $112.20.
• The company reported EPS of $1.90 (in line) and revenue of $3.07B (above estimates) with strong margins and ROE, but it recently cut the dividend; the yield is 0.6% and the payout ratio is an unsustainable 133%.

AngloGold Ashanti PLC (NYSE:AU - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $101.08, but opened at $113.30. AngloGold Ashanti shares last traded at $107.3060, with a volume of 1,409,338 shares trading hands.

Analysts Set New Price Targets

Several equities analysts have issued reports on AU shares. Roth Mkm restated a "buy" rating and issued a $122.00 price target on shares of AngloGold Ashanti in a research report on Friday, February 20th. Citigroup upped their price target on shares of AngloGold Ashanti from $105.00 to $120.00 and gave the company a "buy" rating in a research report on Tuesday, January 20th. Zacks Research cut shares of AngloGold Ashanti from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 23rd. Wall Street Zen cut shares of AngloGold Ashanti from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. Finally, Scotiabank decreased their price target on shares of AngloGold Ashanti from $134.00 to $133.00 and set a "sector outperform" rating for the company in a research report on Friday, March 20th. Four equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, AngloGold Ashanti presently has an average rating of "Hold" and an average target price of $112.20.

AngloGold Ashanti Stock Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.87 and a quick ratio of 2.20. The company's 50-day moving average price is $104.12 and its two-hundred day moving average price is $89.50. The company has a market capitalization of $54.49 billion, a price-to-earnings ratio of 20.82 and a beta of 0.66.

AngloGold Ashanti (NYSE:AU - Get Free Report) last posted its quarterly earnings data on Friday, February 20th. The mining company reported $1.90 earnings per share for the quarter, hitting the consensus estimate of $1.90. AngloGold Ashanti had a net margin of 26.65% and a return on equity of 29.11%. The company had revenue of $3.07 billion during the quarter, compared to analysts' expectations of $2.99 billion. On average, equities research analysts anticipate that AngloGold Ashanti PLC will post 3.83 EPS for the current fiscal year.

AngloGold Ashanti Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were given a dividend of $0.173 per share. The ex-dividend date was Friday, March 13th. This represents a $0.69 annualized dividend and a dividend yield of 0.6%. AngloGold Ashanti's dividend payout ratio is 133.33%.

Institutional Investors Weigh In On AngloGold Ashanti

Several large investors have recently modified their holdings of AU. Empowered Funds LLC acquired a new stake in shares of AngloGold Ashanti during the first quarter worth $321,000. Northwestern Mutual Wealth Management Co. boosted its stake in AngloGold Ashanti by 30.3% during the second 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. Quantbot Technologies LP bought a new position in AngloGold Ashanti during the second quarter worth $1,080,000. Invesco Ltd. boosted its stake in AngloGold Ashanti by 52.7% during the second quarter. Invesco Ltd. now owns 3,063,783 shares of the mining company's stock worth $139,617,000 after acquiring an additional 1,057,372 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in AngloGold Ashanti by 106.2% during the second quarter. EverSource Wealth Advisors LLC now owns 3,367 shares of the mining company's stock worth $153,000 after acquiring an additional 1,734 shares in the last quarter. 36.09% of the stock is currently owned by institutional investors and hedge funds.

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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