AngloGold Ashanti Limited (AU): Aspect That’s Somewhat Upbeat

On December 03, 2019, AngloGold Ashanti Limited (NYSE:AU) shares gained 5.49% or 1.04 points to close at $19.97 with a heavy trading volume of 3.631 million shares. It opened the trading session at $19.73, the shares rose to $20.25 and dropped to $19.68, the range by which the price of stock traded the whole day. The company now has a market cap of $8.32 billion and currently has 416.72 million outstanding shares. AngloGold Ashanti Limited (AU) stock has plunged -7.59 percent of market value in 21 trading days.

AU stock’s trailing 3-year beta is -0.99, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.51 share in the trailing 52 weeks. The stock’s value surged 59.12 percent year to date (YTD) compared to a rise of 101.31 percent in 52 week’s period. The firm’s shares are still trading -16.27 percent below its 1-year high of $23.85 and 100.1 percent up from 52-week low of $9.98. The average consensus ranking on the company is 2.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

AngloGold Ashanti Limited (AU) is most likely going to rise 21.48 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $29.54-month high price target. This represents a whopping 47.92 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $24.73, which means a return possibility of 23.84 percent in comparison with the closing price of the stock of $19.97 on December 03. The lowest price set for the stock is $16.1 — just above -19.38 percent from AU share price now.

The stock is lingering around the initial support level of $19.68. After this, the following support is at the zone of $19.4. Up until the time the AU stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 53.19 on the daily chart, and this may be a cause for concern. In case the price goes below $19.4 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $20.25 level may cause a pull-back move approaching $20.54 mark.

AngloGold Ashanti Limited (AU) shares are trading at a P/E ratio of 37.1 times earnings posted in the trailing 12 months. The industry AU deals with has an average P/E of 50.6. Its P/B ratio is standing at 2.9X compared to the 1.9 industry average. It is additionally sporting a 2.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 4.1. AngloGold Ashanti Limited has a 18.7% gross profit margin, with its operating margin around 10.6%. Alongside this, the company’s net profit margin currently stands at 5.7%.