Harmony Gold Mining Company Limited (HMY): There Is Growth, But The Price Isn’t Reflecting This

The price of Harmony Gold Mining Company Limited (NYSE:HMY) stock ended February 20, 2020 trading at $3.67 which saw downtrend of 1.1% since the beginning of 2020. For most investors, the -3.42% rally in the share price could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock.

A look at the HMY stock today shows that it has gained 72.3% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of Harmony Gold Mining Company Limited (NYSE:HMY). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Harmony Gold Mining Company Limited (HMY) is 1.5 which is a buy rating. Over the past week, the stock has been rated as a Buy 1 times while it has been rated as a Hold 0 times. The 52-week high price for HMY is $3.93 which is attained on January 06 while its 52-week low currently stands at $1.57 and was reached on May 29. At the moment, the stock is trading $0.24 above its YTD moving average set at $3.43.

In order to determine if the stock is worthy of your patience, you should know that Harmony Gold Mining Company Limited (NYSE:HMY) is now trading at 0X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 23.39X while the industry average stands at 22.66X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Harmony Gold Mining Company Limited was able to achieve an EPS of $-0.33 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Thursday, February 20 of 2020, the 14-day Absolute ATR (Average True Range) for HMY moved by $0.19. Over the past seven days, the stock’s average daily volatility stood at 5.54%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Harmony Gold Mining Company Limited’s trading volume has recently moved to 8.3 million, which is compared with the average daily volume of 5.98 million shares.

The daily chart for HMY, points out that the company has recorded 13.27% gains over the past six months. However, it is still 133.76% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 19.93% though it is 11.75% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 8.61% while it is up 27.04% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of HMY reveals that it has gained some grounds as it ended Thursday with a 1.94% rise over the past 30 days.