DRDGOLD (NYSE:DRD) Hits New 1-Year High - Should You Buy?

Key Points

• DRDGOLD shares reached a new 52-week high of $18.65, with an average price target now set at $18.75 and a consensus rating of "Strong Buy" from analysts.
• The company announced an increase in its annual dividend to $0.2269, representing a dividend yield of 170.0%, with the ex-dividend date set for September 12th.
• Institutional investors have shown increasing interest, with significant stake movements including a 769.7% increase in holdings by Brooklyn Investment Group during the first quarter.

DRDGOLD Limited (NYSE:DRD - Get Free Report) shares reached a new 52-week high on Wednesday . The company traded as high as $18.65 and last traded at $18.58, with a volume of 819483 shares trading hands. The stock had previously closed at $17.79.

Analysts Set New Price Targets

A number of research firms recently weighed in on DRD. Zacks Research upgraded shares of DRDGOLD from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 25th. Wall Street Zen cut shares of DRDGOLD from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 17th. Finally, HC Wainwright lifted their target price on shares of DRDGOLD from $16.25 to $18.75 and gave the company a "buy" rating in a research note on Thursday, August 21st. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Strong Buy" and an average target price of $18.75.

DRDGOLD Stock Up 3.7%

The business's fifty day simple moving average is $14.69 and its 200-day simple moving average is $14.34.

DRDGOLD Increases Dividend

The business also recently declared an annual dividend, which will be paid on Monday, September 22nd. Shareholders of record on Friday, September 12th will be issued a $0.2269 dividend. The ex-dividend date is Friday, September 12th. This represents a yield of 170.0%. This is an increase from DRDGOLD's previous annual dividend of $0.16. DRDGOLD's payout ratio is presently 19.84%.

Institutional Trading of DRDGOLD

A number of institutional investors and hedge funds have recently bought and sold shares of DRD. Rockefeller Capital Management L.P. bought a new stake in DRDGOLD in the 2nd quarter valued at $2,505,000. U S Global Investors Inc. bought a new stake in shares of DRDGOLD in the 1st quarter worth about $2,150,000. Acadian Asset Management LLC bought a new stake in shares of DRDGOLD in the 1st quarter worth about $2,055,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of DRDGOLD by 75.0% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 291,249 shares of the basic materials company's stock worth $3,882,000 after buying an additional 124,831 shares during the last quarter. Finally, AQR Capital Management LLC bought a new stake in shares of DRDGOLD in the 1st quarter worth about $1,759,000. 14.70% of the stock is currently owned by institutional investors.

DRDGOLD Company Profile

DRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. It also involved in the exploration, extraction, processing, and smelting activities. The company recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. DRDGOLD Limited was formerly known as Durban Roodepoort Deep Limited and changed its name to DRDGOLD Limited in 2004.