AngloGold Ashanti (NYSE:AU) Shares Down 10.6% After Earnings Miss

AngloGold Ashanti PLC (NYSE:AU)’s share price fell 10.6% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $74.37 and last traded at $73.5970. Approximately 703,489 shares were traded during trading, a decline of 76% from the average daily volume of 2,945,290 shares. The stock had previously closed at $82.33.

The mining company reported $1.98 EPS for the quarter, missing analysts’ consensus estimates of $2.03 by ($0.05). The business had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.20 billion. AngloGold Ashanti had a return on equity of 36.41% and a net margin of 31.11%.

AngloGold Ashanti Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 29th were issued a $1.16 dividend. The ex-dividend date was Friday, May 29th. This represents a $4.64 dividend on an annualized basis and a dividend yield of 6.2%. This is a boost from AngloGold Ashanti’s previous quarterly dividend of $0.17. AngloGold Ashanti’s dividend payout ratio (DPR) is 68.04%.

Analyst Ratings Changes

Several research firms have recently commented on AU. Scotiabank reduced their price target on AngloGold Ashanti from $134.00 to $128.00 and set a “sector outperform” rating for the company in a research report on Tuesday, July 14th. Citigroup dropped their price objective on AngloGold Ashanti from $130.00 to $125.00 and set a “buy” rating on the stock in a research report on Wednesday, July 15th. Royal Bank Of Canada reduced their target price on shares of AngloGold Ashanti from $114.00 to $111.00 and set an “outperform” rating for the company in a report on Thursday, July 9th. Zacks Research lowered shares of AngloGold Ashanti from a “hold” rating to a “strong sell” rating in a research report on Wednesday, July 15th. Finally, Weiss Ratings lowered shares of AngloGold Ashanti from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, June 1st. One 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 given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $110.50.

Institutional Trading of AngloGold Ashanti

Institutional investors have recently made changes to their positions in the business. Empowered Funds LLC purchased a new position in AngloGold Ashanti during the 1st quarter worth $321,000. Northwestern Mutual Wealth Management Co. raised its stake in AngloGold Ashanti by 30.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,023 shares of the mining company’s stock valued at $47,000 after buying an additional 238 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in AngloGold Ashanti by 106.2% in the second quarter. EverSource Wealth Advisors LLC now owns 3,367 shares of the mining company’s stock valued at $153,000 after buying an additional 1,734 shares during the last quarter. First Trust Advisors LP boosted its holdings in AngloGold Ashanti by 88.4% in the second quarter. First Trust Advisors LP now owns 136,543 shares of the mining company’s stock worth $6,200,000 after acquiring an additional 64,066 shares in the last quarter. Finally, Bank of Nova Scotia acquired a new stake in AngloGold Ashanti in the second quarter worth about $1,740,000. Institutional investors and hedge funds own 36.09% of the company’s stock.

AngloGold Ashanti Price Performance

The firm has a market cap of $37.70 billion, a PE ratio of 10.91 and a beta of 0.65. The company has a quick ratio of 2.11, a current ratio of 2.71 and a debt-to-equity ratio of 0.19. The stock has a 50 day moving average price of $84.53 and a two-hundred day moving average price of $96.27.

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.