Anglo American Share Price Forecast July 2021 – Time to Buy AAL?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of mining company Anglo American (LSE: AAL) is in the red at the moment (July 30 11:03 UTC+1) after the price rose for the last ten days and dropped on today’s trade. It makes investors wonder if this is the right time to invest in AAL shares.
Anglo American – Technical Analysis
According to the financial statement of Anglo American, the company has a market cap of £38.717B with total assets worth £45.747. The revenue of the company was £24.10B in 2020 compared to £23.41B in 2019. The market is open at the time of writing at £3198 with a downtrend of -2.88%.
The technical information can offer more insight. However, technical indicators are torn between buy and sell signals on AAL shares. Moving Averages such as Exponential Moving Average (10)(3073.8), Simple Moving Average (10)(3011.5 Volume Weighted Moving Average (20)(2974.9), and Simple Moving Average (20)(2980.1) are pointing towards a buy action. On the other side, Oscillators like Stochastic RSI Fast (3, 3, 14, 14)(92.0) and Bull Bear Power (335.7) are being neutral. However, MACD Level (12, 26)(48.2) is pointing towards buying and Williams Percent Range (14)(-19.5) is pointing towards selling.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Founded in 1917 by Ernest Oppenheimer in the United Kingdom and headquartered in London, Anglo American explores and mines ferrous metals and precious base metals. The company operates through various segments, such as De Beers, Platinum Group Metals, Coal, Copper, Manganese, Iron Ore, and Corporate and Other.
On July 29, 2021, Anglo American expressed its intentions of returning $2B to shareholders via a share buyback program and a special dividend. The company stated that it would return $1B via the special cash dividend of $0.80 per share that is to be paid to UK shareholders on September 24 and to South African shareholders on September 27. Additionally, the other $1B is to be returned via the share buyback program that would expire on February 14, 2022, as the company wants to lower its issued share capital. Goldman Sachs is to act as principal and buy the shares on the London and Johannesburg stock exchanges.
On the same day, it was stated by the company that its profit rose 1001% in the first half of 2021 and revenue also doubled. Anglo American’s profit attributable to shareholders increased to $5.19B or $4.13 per share while it was $471M or $0.38 per share during the first half of 2020. The board declared an interim dividend of $1.71 per share compared to $0.28 per share prior to a year. The company will also conduct a share buyback and pay a special dividend, both at the rate of $0.80 per share.
Should You Buy AAL Shares?
From the point of view of an investor, it is important to consider risk and rewards before purchasing a share. Although the price is in the red at the moment, it has not dropped much and can rise at any moment. Moreover, 14 of the technical indicators are pointing towards a buy action, while 7 are neutral, and 5 are pointing towards selling. Overall, Moving Averages are giving a strong buy signal, while Oscillators are either being neutral or pointing towards buying as well. So, it seems like this is the right time to invest in AAL shares for higher returns in future.
Buy Anglo American Shares at CedarFX, the World’s #1 trading platform!
