Why Harmony Gold Stock Slumped This Week
Harmony Gold Mining (NYSE: HMY) stock plunged 9.6% at its lowest point this week, according to data provided by S&P Global Market Intelligence, before regaining some ground the last day. As of 2 p.m. ET Friday, the gold stock was trading nearly 5% lower for the week.
So why did Harmony Gold plunge earlier in the week, only to rebound later? Multiple factors were at play.
At midweek, UBS analyst Steve Friedman downgraded Harmony Gold stock's rating to neutral and slashed its price target to 47 South African rand per share from 61 ZAR a share, according to TheFly.com. The analyst is cautious about the gold miners' earnings and cash flows in the medium term, especially after its poor results for the year ended June 30. Friedman further highlighted Harmony's high costs and pointed out how they had eroded its margins and could remain high in fiscal year 2023.
Source Fool.com
