Deutsche Bank Loses Some Confidence in Anglo American PLC (LON:AAL). Will Other Analysts Follow?


Anglo American PLC (LON:AAL) Receives a Downgrade

In an analyst note announced on 16 December, Deutsche Bank announced a downgrade to shares of Anglo American PLC (LON:AAL) to a “Hold” rating. The firm has a GBX 300.00 target PPS on the stock.

From a total of 26 analysts covering Anglo American PLC (LON:AAL) stock, 5 rate it a ”Buy”, 9 a “Sell”, and 14 a ”Hold”. This means that 18% of the ratings are positive. The highest target price is GBX 16.28 while the lowest target price is GBX 4.03. The mean of all analyst targets is GBX 8.3 with a 108.73% above today’s (GBX 272.55) stock price. Anglo American PLC was the topic of 143 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. BNP Paribas maintained shares on December 16 with “Neutral” rating. Goldman Sachs maintained shares with “Sell/Neutral” rating and GBX 280 target share price in a report from a December 10. JP Morgan maintained AAL stock in a recent report from December 15 with “Underweight” rating. Nomura maintained the rating on December 10. Nomura has a “Reduce” rating and a GBX 370 price target on shares. Finally, Bernstein maintained the stock with “Outperform” rating in a report issued on a December 14.

Approximately 3.37M shares of stock traded hands. Anglo American plc (LON:AAL) has declined 74.45% since May 19, 2015 and is downtrending. It has underperformed by 71.82% the S&P500.

 Deutsche Bank Loses Some Confidence in Anglo American PLC (LON:AAL). Will Other Analysts Follow?

The overall sentiment of institutions has decreased to 0.96 in Q2 2015. Its down 0.07, from 1.03 in 2015Q2. The ratio fall, as 67 institutions have sold all the shares of Anglo American plc that they owned while 230 funds have taken shares off the table. 67 funds have purchased shares for the first time while 217 added to their positions. These institutions now hold 462.75 million shares or 3.89% less than the 481.50 million shares they owned in 2015Q2.

The Fund Knighthead Capital Management Llc currently is holding shares equating to 15.57% of its total portfolio in Anglo American plc representing a total of 1.54 million shares. Another fund,Contrarian Capital Management L.L.C., is holding a total of 673,480 shares equating to 13.15% of their holdings. Additionally, Candlewood Investment Group Lp has a 250,000 share stake in Anglo American plc which represents 8.11% of their total portfolio. The Fund, Cyrus Capital Partners L.P., based out of New York, has also built up a stake in the stock, which represents a total of 6.9% of their total portfolio. Finally Nokomis Capital L.L.C., a fund which is based in the state of Texas reported a total holdings of 611,900 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 25, 2015, shareholders of Anglo American plc have witnessed 0 insider buys, and a total of 5 sales equating to a net activity of approximately $11.61 million . Parker W Douglas sold 60,362 shares worth approximately $2.31 million. Johnson Stephen L sold 87,161 shares worth approximately $4.29 million. Kerr Derek J sold 2,250 shares worth approximately $111,150. Isom Robert D Jr sold 94,765 shares worth approximately $4.66M. The company insider Kirby J Scott sold 262,471 shares worth $12.99 million.

Anglo American PLC is a mining company. The company has a market cap of 3.98 billion GBP. The Company’s divisions include Iron Ore and Manganese, which includes iron ore, manganese ore and alloys; Coal, which includes metallurgical coal and thermal coal; Copper, which includes copper; Nickel, which includes nickel; Niobium, which includes niobium; Phosphates, which includes phosphates; Platinum, which includes platinum group metals, and De Beers, which includes rough and polished diamonds. It currently has negative earnings. The Company’s portfolio offers bulk commodities and base metals to precious metals and diamonds (through De Beers).

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