Zacks Research Downgrades Allied Gold (NYSE:AAUC) to Strong Sell

Key Points

• Zacks Research downgraded Allied Gold from hold to strong sell, adding to a mixed analyst picture that currently carries an overall consensus rating of Reduce.
• The stock was trading up 3.2% at $21.06, but it remains well below its 52-week high of $32.20 and above its 52-week low of $11.40.
• Allied Gold recently reported Q1 earnings of $0.39 per share, missing estimates by $0.03, while analysts still expect the company to earn $4.52 per share for the full year.

Allied Gold (NYSE:AAUC - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports.

Other equities analysts have also recently issued reports about the stock. Canaccord Genuity Group raised shares of Allied Gold from a "hold" rating to a "buy" rating in a research note on Monday, June 1st. Weiss Ratings restated a "sell (d-)" rating on shares of Allied Gold in a research note on Friday, April 24th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Reduce".

Allied Gold Trading Up 3.2%

Allied Gold stock opened at $21.06 on Monday. Allied Gold has a twelve month low of $11.40 and a twelve month high of $32.20. The stock has a 50 day moving average of $25.01 and a two-hundred day moving average of $28.48. The stock has a market capitalization of $2.66 billion and a price-to-earnings ratio of -20.44.

Allied Gold (NYSE:AAUC - Get Free Report) last released its earnings results on Thursday, May 14th. The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.03). Allied Gold had a negative net margin of 9.08% and a positive return on equity of 36.56%. The company had revenue of $394.11 million during the quarter. Equities analysts predict that Allied Gold will post 4.52 earnings per share for the current year.

Hedge Funds Weigh In On Allied Gold

A number of large investors have recently made changes to their positions in AAUC. Orion Resource Partners LP acquired a new position in Allied Gold during the second quarter worth about $103,634,000. UBS Group AG grew its holdings in Allied Gold by 3,921.0% in the fourth quarter. UBS Group AG now owns 4,042,883 shares of the company's stock valued at $92,501,000 after purchasing an additional 3,942,340 shares during the last quarter. Helikon Investments Ltd increased its position in shares of Allied Gold by 12.0% in the fourth quarter. Helikon Investments Ltd now owns 16,498,498 shares of the company's stock valued at $377,486,000 after buying an additional 1,761,864 shares in the last quarter. Absolute Gestao de Investimentos Ltda. purchased a new position in shares of Allied Gold in the first quarter valued at $51,353,000. Finally, L1 Capital Pty Ltd acquired a new position in shares of Allied Gold during the 4th quarter worth $33,826,000.

Allied Gold Company Profile

Allied Gold NYSE: AAUC is a publicly listed company that operates in the gold mining sector. The firm's business centers on identifying, acquiring and advancing gold-bearing properties with the objective of creating and operating economically viable mining assets. Allied Gold's activities are typical of junior and mid-tier gold companies, encompassing exploration, resource definition, development planning and the eventual production and sale of gold.

Core business activities for Allied Gold include mineral exploration programs to discover and delineate gold resources, feasibility and engineering studies to assess project economics, permitting and mine development work where projects progress to the construction phase, and operational oversight for producing assets.

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