Harmony Gold Mining Company Limited (HMY) Shares: Are They Risky Or Cheap?

Harmony Gold Mining Company Limited (NYSE:HMY) finished Friday with a subtraction of -$0.05 to close at $3.31, a downside of -1.49 percent. An average of 3,770,060 shares of common stock have been traded in the last five days. There was a fall of -$0.13 in the past week, and it reached a new high 12 times over the past 12 months. The last 20 days have seen an average of 3,586,255 shares traded, while the 50-day average volume stands at 4,099,460.

HMY stock has decreased by -17.04% in the last month. The company shares reached their 1-month lowest point of $3.27 on 02/10/23. With the stock rallying to its 52-week high on 01/13/23, shares of the company touched a low of $1.93 and a high of $5.50 in 52 weeks. It has reached a new high 7 times so far this year and lost -2.65% or -$0.09 in price. In spite of this, the price is down -39.82% from the 52-week high.

Valuation Metrics

Harmony Gold Mining Company Limited (HMY) stock’s beta is 1.30. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.89, the price-to-book (PB) ratio at 1.15, and the price-to-cash flow ratio at 136.39.

The company’s most recent quarterly dividend payment was $0.01 a share, representing a down of -61.54% from $0.0260 last year. Its latest decrease dividend $0.0160 reported on Thursday September 8 2022.

Financial Health

The quick ratio of Harmony Gold Mining Company Limited for the recent quarter was 0.90, and the current ratio was 1.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.11 and a total debt to equity ratio of 0.11 for the recent quarter. Harmony Gold Mining Company Limited’s EBITDA margin is 28.29%, while its operating margin for the same period stands at -1.80%. Its gross profit as reported stood at $47.24 million compared to revenue of $2.81 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Harmony Gold Mining Company Limited (HMY) price momentum. RSI 9-day as of the close on 10 February was 33.55%, suggesting the stock is Neutral, with historical volatility in this time frame at 51.25%.

As of today, HMY’s price is $3.42 -3.78% or -$0.13 from its 5-day moving average. HMY is currently trading -17.46% lower than its 20-day SMA and +52.53% higher than its 100-day SMA. However, the stock’s current price level is -5.43% below the SMA50 and -18.67% below the SMA200.

The stochastic %K and %D were 11.77% and 18.99%, respectively, and the average true range (ATR) was 0.16. With the 14-day stochastic at 6.90% and the average true range at 0.16, the RSI (14) stands at 38.37%. The stock has reached -0.10 on the 9-day MACD Oscillator while the 14-day reading was at -0.17.

Analyst Ratings

UBS downgraded Harmony Gold Mining Company Limited (NYSE: HMY) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Harmony Gold Mining Company Limited (HMY) among analysts is Underweight. According to current brokerage recommendations, 3 brokerage firms advise that investors sell HMY, while 1 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

What is HMY’s price target for the next 12 months?

Analysts predict a range of price targets between $2.42 and $4.36, with a median target of $3.53. Taking a look at these predictions, the average price target given by analysts for Harmony Gold Mining Company Limited (HMY) stock is $3.51.

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