AngloGold Ashanti Limited [AU] Revenue clocked in at $4.03 billion, down -22.45% YTD: What’s Next?

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AngloGold Ashanti Limited [NYSE: AU] loss -4.91% or -0.84 points to close at $16.27 with a heavy trading volume of 4122409 shares. The company report on January 18, 2022 that Corvus Gold and AngloGold Ashanti Announce Completion of Acquisition of Corvus by AngloGold Ashanti.

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AngloGold Ashanti Limited (“AngloGold Ashanti”) (JSE: ANG, NYSE: AU) and Corvus Gold Inc. (“Corvus” or the “Company”) (TSX: KOR, NASDAQ: KOR) are pleased to announce the successful completion of the previously announced plan of arrangement under the Business Corporations Act (British Columbia) (the “Arrangement”) between Corvus, 1323606 B.C. Unlimited Liability Company (the “Purchaser”) and AngloGold Ashanti Holdings plc (the “Guarantor”). The Purchaser is an indirect wholly owned subsidiary of AngloGold Ashanti and the Guarantor is a direct wholly owned subsidiary of AngloGold Ashanti. Pursuant to the arrangement agreement, dated as of September 13, 2021, by and among Corvus, the Purchaser and the Guarantor, the Purchaser, among other things, acquired the remaining 80.5% of the outstanding common shares of Corvus (the “Corvus Shares”) not already owned by AngloGold Ashanti and its affiliates (collectively, the “AGA Group”).

As previously announced, the Arrangement was overwhelmingly approved by Corvus shareholders and optionholders at a special meeting held on January 6, 2022. On January 11, 2022, the Company obtained the final order from the Supreme Court of British Columbia approving the Arrangement.

It opened the trading session at $16.33, the shares rose to $16.685 and dropped to $15.87, the range by which the price of stock traded the whole day. The daily chart for AU points out that the company has recorded -18.85% loss over the past six months. However, it is still -11.67% lower than its most recent low trading price.

If we look at the average trading volume of 3.59M shares, AU reached to a volume of 4122409 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 $25.59 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.

JP Morgan have made an estimate for AngloGold Ashanti Limited shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on March 07, 2022. While these analysts kept the previous recommendation, BMO Capital Markets dropped their target price from $30 to $27. The new note on the price target was released on June 02, 2021, representing the official price target for AngloGold Ashanti Limited stock.

The Average True Range (ATR) for AngloGold Ashanti Limited is set at 1.04, with the Price to Sales ratio for AU stock in the period of the last 12 months amounting to 1.84. The Price to Book ratio for the last quarter was 1.71. Price to Free Cash Flow for AU in the course of the last twelve months was 11.64 with Quick ratio for the last quarter at 1.80.

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 -18.41. With this latest performance, AU shares dropped by -31.00% in over the last four-week period, additionally sinking by -18.85% over the last 6 months – not to mention a drop of -28.58% 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 22.23, with the RSI for the last a single of trading hit 16.17, and the three-weeks RSI is set at 27.87 for AngloGold Ashanti Limited [AU]. The present Moving Average for the last 50 days of trading for this stock 22.59, while it was recorded at 17.53 for the last single week of trading, and 19.76 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 +21.05 and a Gross Margin at +25.07. AngloGold Ashanti Limited’s Net Margin is presently recorded at +15.44.

Return on Total Capital for AU is now 13.65, given the latest momentum, and Return on Invested Capital for the company is 10.34. Return on Equity for this stock inclined to 15.56, with Return on Assets sitting at 7.67. When it comes to the capital structure of this company, AngloGold Ashanti Limited [AU] has a Total Debt to Total Equity ratio set at 52.23. Additionally, AU Total Debt to Total Capital is recorded at 34.31, with Total Debt to Total Assets ending up at 26.28. Long-Term Debt to Equity for the company is recorded at 49.44, with the Long-Term Debt to Total Capital now at 32.48.

Receivables Turnover for the company is 46.90 with a Total Asset Turnover recorded at a value of 0.50.AngloGold Ashanti Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 2.70.

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 18.83%.

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

There are presently around $1,945 million, or 29.90% 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 22,619,173, which is approximately 14.809% of the company’s market cap and around 3.10% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 9,509,823 shares of the stock with an approximate value of $162.71 million in AU stocks shares; and BLACKROCK INC., currently with $139.27 million in AU stock with ownership of nearly -9.359% of the company’s market capitalization.

Positions in AngloGold Ashanti Limited stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 72 institutional holders increased their position in AngloGold Ashanti Limited [NYSE:AU] by around 13,480,827 shares. Additionally, 94 investors decreased positions by around 21,896,863 shares, while 32 investors held positions by with 78,273,674 shares. The mentioned changes placed institutional holdings at 113,651,364 shares, according to the latest SEC report filing. AU stock had 33 new institutional investments in for a total of 3,537,846 shares, while 22 institutional investors sold positions of 2,589,917 shares during the same period.