AngloGold Ashanti Limited (NYSE:AU) Share Price Could Go Up In Smoke?

Stock analysts at BMO Capital Markets upped their rating on shares of AngloGold Ashanti Limited (NYSE:AU) from Market Perform to a new rating of Outperform in their opinion released on June 27. RBC Capital Mkts analysts bumped their recommendation on AU stock from prior rating of Sector Perform to Outperform in a separate flash note to investors on June 26. Analysts at Citigroup downgraded the company stock to a Sell call from its previous Neutral stance, in a flash note that dated back to November 06.

The stock is lingering around the initial support level of $19.33. After this, the following support is at the zone of $19.08. 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 40.18 on the daily chart, and this may be a cause for concern. In case the price goes below $19.08 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $19.83 level may cause a pull-back move approaching $20.07 mark.

In the recent trading session, AngloGold Ashanti Limited (NYSE:AU) shares lost -0.2% or -0.04 points to reach at $19.55 with a thin trading volume of 1.566 million shares. It opened the trading session at $19.71, the shares rose to $19.81 and dropped to $19.315, the range by which the price of stock traded the whole session. The company now has a market cap of $8.13 billion and currently has 414.85 million outstanding shares. AngloGold Ashanti Limited (AU) stock has plunged -13.51 percent of market value in 21 trading days.

AU stock’s trailing 3-year beta is -0.74, 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 fallen -12.31 percent year to date (YTD) compared to a rise of 43.94 percent in 52 week’s period. The firm’s shares are still trading -18.03 percent below its 1-year high of $23.85 and 73.16 percent up from 52-week low of $11.29. 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) shares are trading at a P/E ratio of 43.77 times earnings posted in the trailing 12 months. The industry AU deals with has an average P/E of 27.51. Its P/B ratio is standing at 3.09X compared to the 2.38 industry average. It is additionally sporting a 0.72 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.93. 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%.