Barrick Gold Corp. (ABX) Downgraded to “Hold” at Zacks Investment Research
According to Zacks, “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. Barrick is aiming to cut as much as $2 billion in expenses by end-2016. We are also encouraged by its efforts to cut debt. Moreover, the company should benefit from its recent agreement with Cisco for digital reinvention. 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.”
Several other research analysts have also commented on the stock. Citigroup Inc. reaffirmed a buy rating on shares of Barrick Gold Corp. in a research note on Monday. Goldman Sachs Group Inc. reaffirmed a buy rating and set a $27.00 price objective on shares of Barrick Gold Corp. in a research note on Wednesday, October 5th. Deutsche Bank AG raised shares of Barrick Gold Corp. from a hold rating to a buy rating and set a $22.00 price objective for the company in a research note on Monday, October 3rd. Berenberg Bank began coverage on Barrick Gold Corp. in a research report on Wednesday, September 7th. They set a sell rating and a $15.20 target price for the company. Finally, RBC Capital Markets reiterated a sector perform rating on shares of Barrick Gold Corp. in a research report on Sunday, September 4th. Two analysts have rated the stock with a sell rating, eight have given a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. The stock currently has an average rating of Buy and a consensus target price of $21.19.
Shares of Barrick Gold Corp. (NYSE:ABX) traded up 1.57% during midday trading on Monday, hitting $16.15. 2,062,616 shares of the stock were exchanged. Barrick Gold Corp. has a 52-week low of $6.90 and a 52-week high of $23.47. The firm’s market cap is $18.82 billion. The firm’s 50-day moving average is $17.24 and its 200 day moving average is $18.64.
Barrick Gold Corp. (NYSE:ABX) last posted its quarterly earnings data on Wednesday, July 27th. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.15 by $0.01. The firm had revenue of $2.01 billion for the quarter, compared to analysts’ expectations of $2.02 billion. Barrick Gold Corp. had a positive return on equity of 4.95% and a negative net margin of 33.33%. The firm’s quarterly revenue was down 9.8% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.01) earnings per share. On average, analysts forecast that Barrick Gold Corp. will post $0.69 earnings per share for the current year.
Hedge funds have recently modified their holdings of the stock. Ngam Advisors L.P. bought a new stake in shares of Barrick Gold Corp. during the first quarter valued at about $481,000. TIAA CREF Investment Management LLC bought a new stake in shares of Barrick Gold Corp. during the first quarter valued at about $6,380,000. Teachers Advisors Inc. bought a new stake in shares of Barrick Gold Corp. during the first quarter valued at about $9,869,000. BlackRock Japan Co. Ltd bought a new stake in shares of Barrick Gold Corp. during the first quarter valued at about $6,756,000. Finally, NN Investment Partners Holdings N.V. bought a new stake in shares of Barrick Gold Corp. during the first quarter valued at about $477,000. Institutional investors own 60.13% of the company’s stock.
About Barrick Gold Corp.
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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