Stock on Analysts Radar: AngloGold Ashanti Limited (ADR) (NYSE:AU)

AngloGold Ashanti Limited (ADR) (NYSE:AU) plunged -5.02% during previous trade, a total of 3.56M shares exchanged hands compared with its average trading volume of 3.17M shares whereas its relative volume is 0.90. The stock has a market capitalization of $6.75B along with 407.81M outstanding shares. Stock’s intraday price range hit the peak level of $17.41 and touched the lowest level of $16.50.

Most recently AngloGold Ashanti Limited (ADR) (NYSE:AU)’s price target was revised on 08/15/16 and according to 4 analysts stock’s price will reach at $23.38 during 52 weeks with standard deviation of 9.27. Stock’s minimum price target estimates has been figured out at $22.58 while the maximum price target forecast is established at $24.00, if we look at the price target with an optimistic approach it has upside potential of 78% from its latest closing price of $16.64.

Historically, if we look at price target revisions, three weeks ago AngloGold Ashanti Limited (ADR) (NYSE:AU)’s price target was revised on 07/08/16 by the analysts, however the bullish price estimates of the stock set at $24.31 while the bearish estimates kept at $10.50 over the next one year. Stock’s 52-week target was retained at $16.59, the estimates indicates a standard deviation of 7.05.

While taking an overview of recommendation trends, the stock currently has an average brokerage recommendation of 2.00. ABR value is precisely based on brokerage recommendations, where out of 3 brokerage recommendations 1 rate AngloGold Ashanti Limited (ADR) (NYSE:AU) stock a Strong Buy, 1 rate the stocks of the company a Buy, 1 rate Hold, 1 rate Sell and 1 recommend a Strong Sell. Most recently on 5/10/2016 the stock of AngloGold Ashanti Limited (ADR) (NYSE:AU) downgraded by Citigroup from Neutral to Sell. However previously on 4/11/2016 it was upgraded by RBC Capital Mkts from Sector Perform to Outperform. A research note issued on 3/8/2016 the stock was downgraded by RBC Capital Mkts from Outperform to Sector Perform.

AngloGold Ashanti Limited (ADR) (NYSE:AU) performance over the past one year advanced 104.93%, during the last six months the stock rose 30.41%. Quarterly performance of the company shows optimistic momentum of 21.19% while its last one month trend is negative with -25.58%. Stock’s weekly performance expressed down trend of -8.57%.

The company’s price sits -16.15% below from its 50-day moving average of $20.49 and 22.88% far from the stock’s 200-day moving average which is $16.24. AngloGold Ashanti Limited (ADR) (NYSE:AU)’s shares are currently trading -27.37% away from the 52-week high price of $22.91 and +168.39% far from the 52-week low price of $6.20.

For the current year the company’s revenue estimates are $4.01B compared to low analyst estimates of $4.06B and high estimates of $4.17B according to the projection of 3 analysts.

Earnings Alert: AngloGold Ashanti Limited (ADR) (NYSE:AU)

Shares of AngloGold Ashanti Limited (ADR) (NYSE:AU) fell -5.25% to reach at $20.76 during the course of session. The company has experienced volume of 3.88M shares while on average the company has a capacity of trading 3.50M shares.

AngloGold Ashanti Limited (ADR) (NYSE:AU) on August 15, 2016 provided the public with its H1 2016 results.

During H1 2016, AU reported higher net profit attributable to equity shareholders of $52 million, compared with a net loss from continuing operations of $23 million a year earlier.

In spite of a 7% decline in H1 2016 gold production (from 1,878koz to 1,745koz), but in line with full-year guidance range of 3.6-3.8 million ounces, due to unforeseen challenges faced by AU at the Kibali joint venture and planned reduction in output from the Tropicana, Geita and Obuasi mines, the company reported higher earnings thanks to:

  • the higher gold price, which rose 1.5% year-over-year basis (from an average of $1,204/oz in H1 2015 to an average of $1,222/oz. in H1 2016),
  • weaker operating currencies in Brazil, Australia, and Argentina, from which the company’s international operations benefited with a production of 1.259Moz at AISC of $873/oz.
  • continued focus on controlling the cost across its entire portfolio of operations (AISC decreased with 1.4% from $924/oz in H1 2015 to $911/oz in H2 2015),
  • interest saving of $33 million, after the repurchase of 8.5% bonds with a face value of $779 million due in 2020, with the proceeds from the sale of its Cripple Creek & Victor mine in the U.S. to Newmont Mining Corp. As a consequence of deleverage, the net debt fell by 32% to $2.1 billion on June 30 of this year from $3.1 billion at the end of June last year.

AngloGold Ashanti is proving to be a good player in the mining industry, as the company continues to cut operating costs and reduce debt. In line with its strategy to reduce its annual interest charge, on Aug. 1, AngloGold Ashanti also completed the redemption of the remaining 8.5%, seven year bonds outstanding, at a total cost of the $503 million.

The success of AngloGold Ashanti’s continued efforts to deleverage and sustainably improve cash flow, which tripled to $108 million at the end of H1 2016, is reflected in the improvement of the ratio of net debt to adjusted EBITDA at the end of June 2016, that was 1.44 times, compared to the 1.47 times recorded at the end March 2016 and 1.95 times at the end of June 2015.

The postponement of interest hikes by the Federal Reserve is putting more pressure on the price of gold and AngloGold Ashanti is well positioned to benefit from it. The company is considering resuming dividend payments next year.

AngloGold Ashanti Limited (ADR) (NYSE:AU) holds the market capitalization of $8.56B along with 407.81M outstanding shares. During the last trade, stock’s minimum price has been reached out at $20.70 while the maximum trading price moved at $21.58. Currently the stock price is moving -9.38% off from the highest level of twelve months and +234.84% above from twelve months low. AngloGold Ashanti Limited (ADR) (NYSE:AU)  marked highest price level of $22.91 on 08/04/16 and lowest price level of $6.20 on 12/02/15.

As of current trade, AngloGold Ashanti Limited (ADR) (NYSE:AU) has shown weekly downbeat performance of -3.35%. Its six months performance indicated a bullish movement while its yearly performance reflected a positive trend of 232.16%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 192.39%. Shares of AngloGold Ashanti Limited (ADR) (NYSE:AU) currently have an ABR of 1.75, derived from a total of 4 opinions. The company’s price sits 7.66% above from its 50-day moving average of $20.75 and 60.46% above from the stock’s 200-day moving average of $15.57. The company has Relative Strength Index (RSI 14) of 49.52 along with Average True Range (ATR 14) of 0.78. Its weekly and monthly volatility is 2.63%, 2.99% respectively. The company’s beta value is at -0.78.

AngloGold Ashanti Limited (ADR) (NYSE:AU)’s price to sales ratio for trailing twelve months is 2.04 and price to book ratio for most recent quarter is 3.56, whereas price to cash per share for the most recent quarter is 22.16. AngloGold Ashanti Limited (ADR) (NYSE:AU)’s quick ratio for most recent quarter is 0.90 along with current ratio for most recent quarter of 1.80. Total debt to equity ratio of the company for most recent quarter is 1.16 whereas long term debt to equity ratio for most recent quarter is 1.13. AngloGold Ashanti Limited (ADR) (NYSE:AU) has a Return on Assets of -3.20%. The company currently has a Return on Equity of -10.30% and Return on Investment of 4.00%.