Market Analysts see AngloGold Ashanti Limited [AU] falling to $27. Time to buy?

AngloGold Ashanti Limited [NYSE: AU] traded at a high on 09/13/21, posting a 1.37 gain after which it closed the day’ session at $15.50. The company report on September 2, 2021 that Latin Metals and AngloGold Ashanti Enter into Non-binding Letter of Intent Regarding Three Gold Exploration Projects, Salta Province, Argentina.

Latin Metals Inc. (“Latin Metals” or the “Company”) – (TSXV: LMS, OTCQB: LMSQF) announces that it has entered into a non-binding letter of intent (the “LOI”) with AngloGold Ashanti (“AngloGold”) (NYSE: AU, JSE: ANG, ASX: AGG) regarding the Company’s Organullo, Ana Maria, and Trigal Gold Projects (the “Projects”) located in Salta Province, northwestern Argentina. The LOI provides the parties with a 90-day period to negotiate and, if deemed advisable, enter into a definitive agreement, through which the parties contemplate that AngloGold will be granted the option to acquire up to an 80% interest in the Projects.

“Securing joint venture partners is a key part of Latin Metals’ prospect generator operating model and we are pleased to have entered into the LOI with AngloGold, as a potential partner for our projects in Salta province,” stated Keith Henderson, the Company’s President & CEO. “Relatively advanced-stage exploration projects like Organullo require significant expenditures to assess the full potential of the project, which expenditures would otherwise need to be financed through dilutive equity financing. Under the terms contemplated by the LOI, Latin Metals would retain a significant minority position and have the opportunity to participate with AngloGold in a future joint venture.”.

The results of the trading session contributed to over 5398309 shares changing hands. Over the past one week, the price volatility of AngloGold Ashanti Limited stands at 3.10% while the volatility over the past one month is 2.95%.

The market cap for AU stock reached $6.53 billion, with 419.14 million shares outstanding and 412.46 million shares in the current float. Compared to the average trading volume of 3.64M shares, AU reached a trading volume of 5398309 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $23.84 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 2.80. 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.

BMO Capital Markets have made an estimate for AngloGold Ashanti Limited shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on June 02, 2021. The new note on the price target was released on March 08, 2021, representing the official price target for AngloGold Ashanti Limited stock.

The Average True Range (ATR) for AngloGold Ashanti Limited is set at 0.62, with the Price to Sales ratio for AU stock in the period of the last 12 months amounting to 1.47. The Price to Book ratio for the last quarter was 1.70. Price to Free Cash Flow for AU in the course of the last twelve months was 13.49 with Quick ratio for the last quarter at 1.60.

How has AU stock performed recently?

AngloGold Ashanti Limited [AU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.07. With this latest performance, AU shares dropped by -0.83% in over the last four-week period, additionally sinking by -32.34% over the last 6 months – not to mention a drop of -46.26% 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 36.85, with the RSI for the last a single of trading hit 35.41, and the three-weeks RSI is set at 37.48 for AngloGold Ashanti Limited [AU]. The present Moving Average for the last 50 days of trading for this stock 17.82, while it was recorded at 15.69 for the last single week of trading, and 21.12 for the last 200 days.

AngloGold Ashanti Limited [AU]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and AngloGold Ashanti Limited [AU] shares currently have an operating margin of +33.25 and a Gross Margin at +36.14. AngloGold Ashanti Limited’s Net Margin is presently recorded at +21.37.

Return on Total Capital for AU is now 31.52, given the latest momentum, and Return on Invested Capital for the company is 22.39. Return on Equity for this stock inclined to 34.16, with Return on Assets sitting at 14.93. When it comes to the capital structure of this company, AngloGold Ashanti Limited [AU] has a Total Debt to Total Equity ratio set at 56.40. Additionally, AU Total Debt to Total Capital is recorded at 36.06, with Total Debt to Total Assets ending up at 27.16. Long-Term Debt to Equity for the company is recorded at 51.56, with the Long-Term Debt to Total Capital now at 32.96.

Receivables Turnover for the company is 28.12 with a Total Asset Turnover recorded at a value of 0.70.AngloGold Ashanti Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 2.40.

Earnings analysis for AngloGold Ashanti Limited [AU]

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 34.89%.

Insider trade positions for AngloGold Ashanti Limited [AU]

There are presently around $1,866 million, or 32.30% 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 22,128,588, which is approximately 3.028% of the company’s market cap and around 3.10% of the total institutional ownership; BLACKROCK INC., holding 11,009,328 shares of the stock with an approximate value of $170.65 million in AU stocks shares; and AQR CAPITAL MANAGEMENT LLC, currently with $113.23 million in AU stock with ownership of nearly 31.662% 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 August and at the time of the August reporting period, where 85 institutional holders increased their position in AngloGold Ashanti Limited [NYSE:AU] by around 15,759,996 shares. Additionally, 83 investors decreased positions by around 16,824,077 shares, while 39 investors held positions by with 87,791,124 shares. The mentioned changes placed institutional holdings at 120,375,197 shares, according to the latest SEC report filing. AU stock had 27 new institutional investments in for a total of 3,042,821 shares, while 25 institutional investors sold positions of 1,266,348 shares during the same period.

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