AngloGold Ashanti (NYSE:AU) Shares Up 6.1% - Should You Buy?

Key Points

• AngloGold Ashanti's shares surged 6.1% to a last traded price of $49.05, despite a 46% decline in trading volume compared to average session volume.
• Analysts have mixed ratings on the stock, with one sell, one hold, and six buy ratings, and a price target that varies significantly among firms, ranging from $35.00 to $63.00.
• The company recently reported earnings per share of $1.25, missing estimates, while also cutting its dividend to a yield of 114.0%.

AngloGold Ashanti PLC (NYSE:AU - Get Free Report) shares shot up 6.1% on Friday . The company traded as high as $48.78 and last traded at $49.05. 1,691,353 shares traded hands during mid-day trading, a decline of 46% from the average session volume of 3,145,537 shares. The stock had previously closed at $46.25.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on AU. Roth Capital reiterated a "buy" rating on shares of AngloGold Ashanti in a report on Friday. Wall Street Zen downgraded AngloGold Ashanti from a "strong-buy" rating to a "buy" rating in a report on Sunday, June 1st. HSBC reiterated a "reduce" rating and issued a $35.00 target price on shares of AngloGold Ashanti in a report on Thursday, April 17th. Scotiabank increased their price objective on AngloGold Ashanti from $42.00 to $43.50 and gave the stock a "sector perform" rating in a report on Monday, May 12th. Finally, JPMorgan Chase & Co. upped their target price on AngloGold Ashanti from $58.00 to $63.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 15th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and six have issued a buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $45.08.

AngloGold Ashanti Stock Up 5.5%

The firm has a 50-day moving average price of $47.22 and a two-hundred day moving average price of $39.60. The company has a quick ratio of 1.57, a current ratio of 2.34 and a debt-to-equity ratio of 0.22. The company has a market capitalization of $20.48 billion, a P/E ratio of 12.98 and a beta of 0.46.

AngloGold Ashanti (NYSE:AU - Get Free Report) last issued its earnings results on Friday, August 1st. The mining company reported $1.25 EPS for the quarter, missing analysts' consensus estimates of $1.31 by ($0.06). The firm had revenue of $2.45 billion during the quarter, compared to analyst estimates of $2.29 billion. AngloGold Ashanti had a net margin of 21.09% and a return on equity of 21.18%. Equities research analysts anticipate that AngloGold Ashanti PLC will post 3.83 EPS for the current fiscal year.

AngloGold Ashanti Cuts Dividend

The firm also recently announced a dividend, which was paid on Friday, June 13th. Stockholders of record on Monday, June 2nd were paid a $0.125 dividend. The ex-dividend date was Friday, May 30th. This represents a dividend yield of 114.0%. AngloGold Ashanti's dividend payout ratio (DPR) is 16.45%.

Institutional Trading of AngloGold Ashanti

A number of hedge funds and other institutional investors have recently made changes to their positions in AU. Raymond James Financial Inc. acquired a new stake in AngloGold Ashanti in the fourth quarter worth about $406,000. Sei Investments Co. acquired a new stake in AngloGold Ashanti in the fourth quarter worth about $1,750,000. Norges Bank acquired a new stake in AngloGold Ashanti in the fourth quarter worth about $2,332,000. Nomura Asset Management Co. Ltd. acquired a new stake in AngloGold Ashanti in the fourth quarter worth about $32,000. Finally, Wellington Management Group LLP acquired a new stake in AngloGold Ashanti in the fourth quarter worth about $392,000. 36.09% of the stock is currently owned by institutional investors and hedge funds.

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.