AngloGold Ashanti Limited (AU) expanding its growth trajectory ahead

AngloGold Ashanti Limited (NYSE: AU) stock fell -0.22% on Monday to $22.56 against a previous-day closing price of $22.61. With 2.68 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.91 million shares. During the session, the Gold company that operates in wider Basic Materials sector, reached to the highest price of $22.73 whereas the lowest price it dropped to was $21.97. The 52-week range on AU shows that it touched its highest point at $26.96 and its lowest point at $11.94 during that stretch. It currently has a 1-year price target of $20.62. With its current market cap of 9.29 billion, AU has annualized dividend of $0.49 while the current yield stands at 2.19%. Beta for the stock currently stands at 0.63.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AU was down-trending over the past week, with a drop of -2.67%, but this was up by 17.81% over a month. Three-month performance surged to 76.94% while six-month performance rose 59.43%. The stock gained 9.04% in the past year, while it has gained 16.17% so far this year. A look at the trailing 12-month EPS for AU yields 1.33 with Next year EPS estimates of 1.41. EPS is expected to grow by 15.51% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 57.70%.

Float and Shares Shorts:

At present, 419.99 million AU shares are outstanding with a float of 412.66 million shares on hand for trading. On Dec 29, 2022, short shares totaled 6.42 million, which was 1.53% higher than short shares on Nov 29, 2022. In addition to Mr. Alberto Calderon Zuleta B.A., J.D., M.A., Ph.D. as the firm’s Chief Exec. Officer, Mr. Ludwig Eybers B.Sc. serves as its Chief Operating Officer.

Institutional Ownership:

Through their ownership of 26.88% of AU’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.43% of AU, in contrast to 16.74% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in AU with 5.61% of the stake, Van Eck Associates Corp. holds 23,477,432 shares worth 23,477,432. A second-largest stockholder of AU, T. Rowe Price Associates, Inc., holds 10,061,311 shares, controlling over 2.40% of the firm’s shares. Coronation Asset Management is the third largest shareholder in AU, holding 5,918,449 shares or 1.41% stake. With a 5.20% stake in AU, the VanEck Gold Miners ETF is the largest stakeholder. A total of 21,759,321 shares are owned by the mutual fund manager. The T Rowe Price Mid Cap Value Fund, which owns about 0.74% of AU stock, is the second-largest Mutual Fund holder. It holds 3,109,000 shares valued at 60.38 million. iShares V Plc – Gold Producers UC holds 0.72% of the stake in AU, owning 3,029,798 shares worth 58.84 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. Over the past year, revenue came in at $4.22B while operating income stood at $790.00M. EBITDA for the full year was $1.57B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AU since 11 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AU analysts setting a high price target of $26.22 and a low target of $16.00, the average target price over the next 12 months is $21.57. Based on these targets, AU could surge 16.22% to reach the target high and fall by -29.08% to reach the target low. Reaching the average price target will result in a decline of -4.39% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AU will report FY 2022 earnings on 02/20/2024. Analysts have provided yearly estimates in a range of $1.63 being high and $1.21 being low. For AU, this leads to a yearly average estimate of $1.44. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. AngloGold Ashanti Limited surprised analysts by $0.04 when it reported $0.26 EPS against a consensus estimate of $0.22. The surprise factor in the prior quarter was $0.36. Based on analyst estimates, the high estimate for the next quarter is $0.69 and the low estimate is $0.30. The average estimate for the next quarter is thus $0.43.

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