NEW YORK (TheStreet) -- Shares of Harmony Gold Mining Co. (HMY) are higher by 5.14% to $1.84 on heavy volume in mid-afternoon trading on Tuesday, as gold mining stocks spike due to a rise in gold prices.
The precious metal hit a two-week high today as Russia said it added more bullion to its reserves and the dollar fell, Bloomberg reports.
So far today, 5.94 million shares of Harmony Gold Mining have exchanged hands, as compared to its average daily volume of 2.49 million shares.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Gold for December delivery gained by $13.60, or 1.2%, settling at $1,197.10 per ounce, MarketWatch reports.
Other gold mining stocks on the rise today include Yamana Gold Inc. (AUY) , higher by 6.05% to $4.21, Barrick Gold Corp. (ABX) , up by 5.69% to $13.18, and Goldcorp Inc. (GG) , gaining by 2.68% to $21.07 this afternoon.
Separately, TheStreet Ratings team rates HARMONY GOLD MINING CO LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HARMONY GOLD MINING CO LTD (HMY) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 1918.2% when compared to the same quarter one year ago, falling from $1.29 million to -$23.53 million.
- The gross profit margin for HARMONY GOLD MINING CO LTD is rather low; currently it is at 18.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.00% is significantly below that of the industry average.
- This stock's share value has moved by only 48.89% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- HARMONY GOLD MINING CO LTD's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, HARMONY GOLD MINING CO LTD continued to lose money by earning -$0.28 versus -$0.62 in the prior year.
- HMY, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: HMY Ratings Report