Allied Gold (NYSE:AAUC) Stock Rating Lowered by Canaccord Genuity Group

Allied Gold (NYSE:AAUC) was downgraded by stock analysts at Canaccord Genuity Group from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other equities analysts have also commented on AAUC. Zacks Research lowered Allied Gold from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 6th. Stifel Nicolaus raised shares of Allied Gold to a “strong-buy” rating in a research note on Thursday, November 6th. Finally, Weiss Ratings initiated coverage on shares of Allied Gold in a research report on Thursday, October 30th. They issued a “sell (d-)” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold”.

Allied Gold Trading Up 4.1%

NYSE:AAUC opened at $31.65 on Monday. The firm has a market capitalization of $3.95 billion and a price-to-earnings ratio of -87.91. The firm has a 50 day moving average price of $23.38. Allied Gold has a 1-year low of $8.04 and a 1-year high of $31.82.

Allied Gold (NYSE:AAUC) last released its earnings results on Wednesday, November 5th. The company reported $0.29 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.18). Allied Gold had a positive return on equity of 24.32% and a negative net margin of 3.58%.

Institutional Investors Weigh In On Allied Gold

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Orion Resource Partners LP purchased a new stake in shares of Allied Gold during the 2nd quarter worth about $103,634,000. Helikon Investments Ltd grew its stake in Allied Gold by 25.0% during the third quarter. Helikon Investments Ltd now owns 14,736,634 shares of the company’s stock worth $258,038,000 after buying an additional 2,944,721 shares during the period. Vanguard Group Inc. grew its stake in Allied Gold by 1,824.7% during the third quarter. Vanguard Group Inc. now owns 1,177,971 shares of the company’s stock worth $20,585,000 after buying an additional 1,116,768 shares during the period. Bank of America Corp DE acquired a new stake in shares of Allied Gold in the second quarter worth $13,169,000. Finally, Millennium Management LLC raised its stake in shares of Allied Gold by 243.4% in the 3rd quarter. Millennium Management LLC now owns 651,315 shares of the company’s stock valued at $11,383,000 after acquiring an additional 461,628 shares during the period.

Allied Gold News Roundup

Here are the key news stories impacting Allied Gold this week:

• Positive Sentiment: The company agreed to be acquired by Zijin Gold International in a definitive, friendly all?cash arrangement valued at C$5.5 billion — a deal that typically boosts target share prices by converting equity into a cash payout. Allied Gold to be Acquired by Zijin Gold International in Friendly All-Cash Offer Valued at C$5.5 Billion
• Positive Sentiment: Market reaction: AAUC surged to 52?week highs on the takeover news and saw a substantial spike in volume, indicating broad investor buying on the takeover proposition. Allied, Barrick, American Eagle at 52-Week Highs on News
• Neutral Sentiment: Reported transaction value in USD varies across outlets (roughly US$4.0B) due to currency conversion — the binding figure is the C$5.5B consideration in the agreement. This is mostly a reporting/translation difference, not a change to the deal economics. Allied Gold Agreed to $4 Billion Buyout By Hong Kong’s Zijin Gold
• Negative Sentiment: The transaction remains subject to customary closing conditions (regulatory approvals, shareholder vote and any foreign investment review). Until closing there is execution and regulatory risk that could reverse some of the share gains. China’s Zijin Gold to acquire Canadian miner Allied Gold for $5.5-billion in cash

About Allied Gold

Allied Gold (NYSE: AAUC) is a publicly listed company that operates in the gold mining sector. The firm’s business centers on identifying, acquiring and advancing gold-bearing properties with the objective of creating and operating economically viable mining assets. Allied Gold’s activities are typical of junior and mid-tier gold companies, encompassing exploration, resource definition, development planning and the eventual production and sale of gold.

Core business activities for Allied Gold include mineral exploration programs to discover and delineate gold resources, feasibility and engineering studies to assess project economics, permitting and mine development work where projects progress to the construction phase, and operational oversight for producing assets.