Barrick Gold Corp. (ABX) Stock Rating Lowered by Zacks Investment Research
Barrick Gold Corp. (NYSE:ABX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.
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 equities research analysts have also issued reports on the company. Citigroup Inc. reissued a “buy” rating on shares of Barrick Gold Corp. in a research note on Monday. Goldman Sachs Group Inc. reissued 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 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 assumed coverage on Barrick Gold Corp. in a research note on Wednesday, September 7th. They set a “sell” rating and a $15.20 price objective for the company. Finally, RBC Capital Markets reissued a “sector perform” rating on shares of Barrick Gold Corp. in a research note on Sunday, September 4th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $21.19.
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Shares of Barrick Gold Corp. (NYSE:ABX) traded up 1.34% during midday trading on Monday, hitting $15.90. The stock had a trading volume of 7,445,996 shares. Barrick Gold Corp. has a 1-year low of $6.90 and a 1-year high of $23.47. The stock’s market cap is $18.53 billion. The firm’s 50-day moving average price is $17.31 and its 200-day moving average price is $18.56.
Barrick Gold Corp. (NYSE:ABX) last posted its quarterly earnings results on Wednesday, July 27th. The company reported $0.14 EPS for the quarter, missing the Zacks’ consensus estimate of $0.15 by $0.01. Barrick Gold Corp. had a positive return on equity of 4.95% and a negative net margin of 33.33%. The company earned $2.01 billion during the quarter, compared to the consensus estimate of $2.02 billion. Barrick Gold Corp.’s revenue was down 9.8% on a year-over-year basis. During the same period in the previous year, the business earned ($0.01) earnings per share. Analysts forecast that Barrick Gold Corp. will post $0.69 earnings per share for the current year.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Ngam Advisors L.P. bought a new stake in shares of Barrick Gold Corp. during the first quarter worth approximately $481,000. TIAA CREF Investment Management LLC bought a new stake in shares of Barrick Gold Corp. during the first quarter worth approximately $6,380,000. Teachers Advisors Inc. bought a new stake in shares of Barrick Gold Corp. during the first quarter worth approximately $9,869,000. BlackRock Japan Co. Ltd bought a new stake in shares of Barrick Gold Corp. during the first quarter worth approximately $6,756,000. Finally, NN Investment Partners Holdings N.V. bought a new stake in shares of Barrick Gold Corp. during the first quarter worth approximately $477,000. Hedge funds and other 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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