Zacks Investment Research Downgrades Barrick Gold Corp. (ABX) to Hold
Barrick Gold Corp. (NYSE:ABX) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Estimates for Barrick have been stable lately. Barrick has a healthy cash flow profile, enabling it to invest in attractive expansion opportunities. The company should also gain from its cost management initiatives. We are also encouraged by its efforts to cut debt. However, Barrick is exposed to a volatile gold pricing environment. Moreover, the company continues to see pressure on its top line. Lower expected gold production (on a year over year basis) could weigh on its sales in 2016. The company's falling gold reserve base is another concern.”
A number of other equities analysts have also weighed in on the stock. Vetr raised shares of Barrick Gold Corp. from a “buy” rating to a “strong-buy” rating and set a $24.15 price objective for the company in a research report on Monday, August 22nd. Berenberg Bank started coverage on shares of Barrick Gold Corp. in a research report on Wednesday, September 7th. They issued a “sell” rating and a $15.20 price objective for the company. TD Securities reissued a “buy” rating and issued a $26.00 price objective on shares of Barrick Gold Corp. in a research report on Monday, July 25th. Credit Suisse Group AG reissued a “buy” rating and issued a $17.00 price objective on shares of Barrick Gold Corp. in a research report on Wednesday, June 29th. Finally, Goldman Sachs Group Inc. reissued a “conviction-buy” rating and issued a $27.00 price objective on shares of Barrick Gold Corp. in a research report on Friday, July 29th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating, ten have issued a buy rating and two have given a strong buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $21.29.
Barrick Gold Corp. (NYSE:ABX) traded down 2.37% during midday trading on Monday, reaching $17.30. 6,110,299 shares of the company’s stock were exchanged. The stock’s 50 day moving average is $18.60 and its 200 day moving average is $18.47. The firm’s market capitalization is $20.16 billion. Barrick Gold Corp. has a 52 week low of $6.61 and a 52 week high of $23.47.
Barrick Gold Corp. (NYSE:ABX) last posted its quarterly earnings data on Wednesday, July 27th. The company reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.15 by $0.01. The firm earned $2.01 billion during the quarter, compared to analyst estimates of $2.02 billion. Barrick Gold Corp. had a negative net margin of 33.33% and a positive return on equity of 4.95%. The business’s quarterly revenue was down 9.8% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.01) EPS. On average, analysts expect that Barrick Gold Corp. will post $0.69 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Wednesday, August 31st were issued a dividend of $0.02 per share. The ex-dividend date of this dividend was Monday, August 29th. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.45%. Barrick Gold Corp.’s dividend payout ratio (DPR) is -3.29%.
Several hedge funds have recently modified their holdings of ABX. First New York Securities LLC NY purchased a new stake in Barrick Gold Corp. during the second quarter worth $117,000. Dubuque Bank & Trust Co. purchased a new stake in Barrick Gold Corp. during the second quarter worth $141,000. CENTRAL TRUST Co boosted its stake in Barrick Gold Corp. by 5.3% in the second quarter. CENTRAL TRUST Co now owns 7,786 shares of the company’s stock worth $166,000 after buying an additional 392 shares during the period. Fruth Investment Management purchased a new stake in Barrick Gold Corp. during the second quarter worth $210,000. Finally, Bourgeon Capital Management LLC purchased a new stake in Barrick Gold Corp. during the second quarter worth $213,000. 60.11% of the stock is currently owned by institutional investors.
Barrick Gold Corp. Company Profile
Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. The Company produces copper, principally from its Zaldivar joint venture and Lumwana mine, and holds other interests. Barricks’ segments include Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, Veladero, Turquoise Ridge, Porgera, Kalgoorlie, Acacia Mining plc, Lumwana, Zaldivar and Pascua-Lama Project.
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