AngloGold Ashanti (AU) Stock Rises Today as Gold Prices Rally to Two-Week High

NEW YORK (TheStreet) -- Shares of AngloGold Ashanti  (AU) rose 5.38% to $10.18 in late afternoon trading Tuesday as gold prices recovered to reach a two-week high.

Gold prices rallied $20 to cross the $1,200 per troy ounce mark for the first time in more than two weeks on Tuesday as the U.S. dollar weakened and drove investors toward the precious metal.

Gold futures for December delivery climbed 1.71% to hit an intraday high of $1,204.10 per troy ounce, the highest price since October 30, on the Comex division of the New York Mercantile Exchange.

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

More than 4.7 million shares had changed hands as of 3:39 p.m., compared to the average daily volume of 3,130,430.

Separately, TheStreet Ratings team rates ANGLOGOLD ASHANTI LTD as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate ANGLOGOLD ASHANTI LTD (AU) a SELL. This is driven by some concerns, 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 generally high debt management risk and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 32.93%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.08% significantly trails the industry average.
  • This stock's share value has moved by only 42.71% 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.
  • AU, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has remained constant at $320.00 million with no significant change when compared to the same quarter last year. Even though ANGLOGOLD ASHANTI LTD's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -55.48%.
  • You can view the full analysis from the report here: AU Ratings Report

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

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists