Heavy Trading On Anglogold Ashanti (AU) Before Market Open

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Anglogold Ashanti ( AU) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Anglogold Ashanti as such a stock due to the following factors:

  • AU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.5 million.
  • AU traded 223,230 shares today in the pre-market hours as of 8:17 AM, representing 11.5% of its average daily volume.

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More details on AU:

AngloGold Ashanti Limited operates as a gold mining and exploration company. It also produces silver, uranium oxide, and sulphuric acid as by-products. The stock currently has a dividend yield of 0.3%. Currently there is 1 analyst that rates Anglogold Ashanti a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Anglogold Ashanti has been 1.9 million shares per day over the past 30 days. Anglogold Ashanti has a market cap of $6.4 billion and is part of the basic materials sector and metals & mining industry. Shares are up 31.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Anglogold Ashanti as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

Highlights from the ratings report include:
  • The debt-to-equity ratio of 1.24 is relatively high when compared with the industry average, suggesting a need for better debt level management.
  • The gross profit margin for ANGLOGOLD ASHANTI LTD is currently lower than what is desirable, coming in at 33.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.91% is significantly below that of the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, ANGLOGOLD ASHANTI LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 96.3% when compared to the same quarter one year prior, rising from -$2,165.00 million to -$80.00 million.
  • ANGLOGOLD ASHANTI LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANGLOGOLD ASHANTI LTD swung to a loss, reporting -$6.07 versus $1.70 in the prior year. This year, the market expects an improvement in earnings ($0.72 versus -$6.07).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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