why AngloGold Ashanti Limited [AU] is a Good Choice for Investors After New Price Target of $33.94

AngloGold Ashanti Limited [NYSE: AU] loss -4.65% on the last trading session, reaching $21.51 price per share at the time. The company report on November 18, 2020 that Sierra Wireless Completes Divestiture of Automotive Embedded Module Product Line.

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Sierra Wireless (NASDAQ: SWIR) (TSX: SW) (the “Company” or “Sierra Wireless”), the leading IoT solutions provider that combines devices, network services and software to unlock value in the connected economy, announced it has completed the previously announced sale of its Shenzhen, China-based automotive embedded module product line to Rolling Wireless (H.K.) Limited (“Rolling Wireless”) for US$165 million in cash. The sale of the automotive product line includes approximately US$19 million of cash and is subject to normal working capital adjustments.

“This divestiture of the Automotive product line enables Sierra Wireless to strengthen our focus and success in investment in our IoT Solutions that deliver high-value recurring revenue,” said Kent Thexton, President and CEO of Sierra Wireless. “Completing the transaction also gives us financial strength as we expand our position in the growing IoT solutions market as well as broaden our portfolio of new 5G modules and gateways for the Enterprise and Mobile Broadband markets.”.

AngloGold Ashanti Limited represents 418.50 million in outstanding shares, while the company has a total market value of $8.77 billion with the latest information. AU stock price has been found in the range of $21.07 to $21.83.

If compared to the average trading volume of 2.58M shares, AU reached a trading volume of 4290839 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about AngloGold Ashanti Limited [AU]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AU shares is $33.94 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AU stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

RBC Capital Mkts have made an estimate for AngloGold Ashanti Limited shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on September 15, 2020. The new note on the price target was released on July 31, 2020, representing the official price target for AngloGold Ashanti Limited stock.

The Average True Range (ATR) for AngloGold Ashanti Limited is set at 1.00, with the Price to Sales ratio for AU stock in the period of the last 12 months amounting to 2.39. The Price to Book ratio for the last quarter was 2.99, with the Price to Cash per share for the same quarter was set at 3.17. Price to Free Cash Flow for AU in the course of the last twelve months was 16.92 with Quick ratio for the last quarter at 2.00.

Trading performance analysis for AU stock

AngloGold Ashanti Limited [AU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.51. With this latest performance, AU shares dropped by -14.54% in over the last four-week period, additionally sinking by -11.66% over the last 6 months – not to mention a rise of 12.32% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AU stock in for the last two-week period is set at 34.96, with the RSI for the last a single of trading hit 30.03, and the three-weeks RSI is set at 36.78 for AngloGold Ashanti Limited [AU]. The present Moving Average for the last 50 days of trading for this stock 25.52, while it was recorded at 22.37 for the last single week of trading, and 25.41 for the last 200 days.

AngloGold Ashanti Limited [AU]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and AngloGold Ashanti Limited [AU] shares currently have an operating margin of +16.77 and a Gross Margin at +21.90. AngloGold Ashanti Limited’s Net Margin is presently recorded at +10.33.

Return on Total Capital for AU is now 12.51, given the latest momentum, and Return on Invested Capital for the company is 8.59. Return on Equity for this stock inclined to 14.01, with Return on Assets sitting at 5.49. When it comes to the capital structure of this company, AngloGold Ashanti Limited [AU] has a Total Debt to Total Equity ratio set at 83.48. Additionally, AU Total Debt to Total Capital is recorded at 45.50, with Total Debt to Total Assets ending up at 32.11. Long-Term Debt to Equity for the company is recorded at 53.98, with the Long-Term Debt to Total Capital now at 29.42.

Receivables Turnover for the company is 20.19 with a Total Asset Turnover recorded at a value of 0.53.AngloGold Ashanti Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.60.

AngloGold Ashanti Limited [AU]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for AngloGold Ashanti Limited go to 30.55%.

An analysis of insider ownership at AngloGold Ashanti Limited [AU]

There are presently around $2,677 million, or 33.50% of AU stock, in the hands of institutional investors. The top three institutional holders of AU stocks are: VAN ECK ASSOCIATES CORP with ownership of 25,487,312, which is approximately 3.495% of the company’s market cap and around 3.10% of the total institutional ownership; BLACKROCK INC., holding 10,261,186 shares of the stock with an approximate value of $220.72 million in AU stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $182.53 million in AU stock with ownership of nearly -2.01% of the company’s market capitalization.

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Positions in AngloGold Ashanti Limited stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 90 institutional holders increased their position in AngloGold Ashanti Limited [NYSE:AU] by around 11,715,691 shares. Additionally, 104 investors decreased positions by around 23,392,564 shares, while 30 investors held positions by with 89,332,566 shares. The mentioned changes placed institutional holdings at 124,440,821 shares, according to the latest SEC report filing. AU stock had 30 new institutional investments in for a total of 2,080,067 shares, while 28 institutional investors sold positions of 2,191,625 shares during the same period.

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