AngloGold Ashanti (NYSE:AU) Stock Price Down 10.6% Following Weak Earnings

AngloGold Ashanti PLC (NYSE:AU)’s stock price traded down 10.6% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $74.37 and last traded at $73.5970. 703,489 shares traded hands during mid-day 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 the consensus estimate of $2.03 by ($0.05). AngloGold Ashanti had a net margin of 31.11% and a return on equity of 36.41%. The firm had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.20 billion.

AngloGold Ashanti Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 29th were paid a dividend of $1.16 per share. This is a positive change from AngloGold Ashanti’s previous quarterly dividend of $0.17. This represents a $4.64 dividend on an annualized basis and a dividend yield of 6.2%. The ex-dividend date of this dividend was Friday, May 29th. AngloGold Ashanti’s payout ratio is currently 68.04%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Scotiabank dropped their price objective on AngloGold Ashanti from $134.00 to $128.00 and set a “sector outperform” rating for the company in a report on Tuesday, July 14th. Freedom Capital raised shares of AngloGold Ashanti to a “strong-buy” rating in a research note on Friday, June 26th. Royal Bank Of Canada cut their price target on shares of AngloGold Ashanti from $114.00 to $111.00 and set an “outperform” rating on the stock in a report on Thursday, July 9th. Citigroup reduced their price target on shares of AngloGold Ashanti from $130.00 to $125.00 and set a “buy” rating on the stock in a research note on Wednesday, July 15th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of AngloGold Ashanti from $155.00 to $134.00 and set an “overweight” rating for the company in a report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $110.50.

Institutional Investors Weigh In On AngloGold Ashanti

Several hedge funds have recently made changes to their positions in the company. Ascentis Independent Advisors purchased a new position in shares of AngloGold Ashanti during the first quarter valued at $26,000. Zions Bancorporation National Association UT purchased a new stake in AngloGold Ashanti in the fourth quarter worth about $31,000. Garton & Associates Financial Advisors LLC bought a new position in AngloGold Ashanti during the 4th quarter worth about $34,000. Mcguire Capital Advisors Inc. bought a new position in AngloGold Ashanti during the 4th quarter worth about $36,000. Finally, Global Retirement Partners LLC increased its position in AngloGold Ashanti by 454.1% during the 4th quarter. Global Retirement Partners LLC now owns 471 shares of the mining company’s stock valued at $40,000 after purchasing an additional 386 shares during the period. 36.09% of the stock is currently owned by hedge funds and other institutional investors.

AngloGold Ashanti Stock Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.11 and a current ratio of 2.71. The firm has a market cap of $37.70 billion, a P/E ratio of 10.91 and a beta of 0.65. The firm’s fifty day moving average price is $84.53 and its 200 day moving average price is $96.27.

About AngloGold Ashanti

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.