DRDGOLD (NYSE:DRD) Shares Gap Down - Here's Why

Key Points

• DRDGOLD shares gapped down from a previous close of $22.42 to open at $21.84, with the last traded price at $22.25.
• The company announced an increase in its annual dividend to $0.2269 per share, up from $0.16, with a dividend yield of 202.0%.
• Several analysts have adjusted their ratings on DRDGOLD, with the average rating now being "Strong Buy" and a consensus target price of $18.75.

Shares of DRDGOLD Limited (NYSE:DRD - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $22.42, but opened at $21.84. DRDGOLD shares last traded at $22.25, with a volume of 143,882 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on DRD. Zacks Research raised DRDGOLD from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 25th. Wall Street Zen downgraded DRDGOLD from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 17th. Finally, HC Wainwright lifted their price target on DRDGOLD from $16.25 to $18.75 and gave the company a "buy" rating in a research note on Thursday, August 21st. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company's stock. According to data from MarketBeat.com, DRDGOLD currently has a consensus rating of "Strong Buy" and an average price target of $18.75.

DRDGOLD Stock Up 5.1%

The firm has a 50 day moving average of $17.30 and a 200 day moving average of $15.47. The firm has a market cap of $2.22 billion, a PE ratio of 20.36 and a beta of 0.36.

DRDGOLD Increases Dividend

The firm also recently announced an annual dividend, which will be paid on Monday, September 22nd. Shareholders of record on Friday, September 12th will be given a dividend of $0.2269 per share. This is a boost from DRDGOLD's previous annual dividend of $0.16. This represents a yield of 202.0%. The ex-dividend date is Friday, September 12th. DRDGOLD's dividend payout ratio (DPR) is 29.37%.

Institutional Trading of DRDGOLD

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. American Century Companies Inc. grew its holdings in DRDGOLD by 0.4% during the 2nd quarter. American Century Companies Inc. now owns 945,945 shares of the basic materials company's stock valued at $12,609,000 after buying an additional 4,030 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of DRDGOLD by 9.7% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 564,067 shares of the basic materials company's stock valued at $7,519,000 after acquiring an additional 49,868 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in DRDGOLD by 75.0% during the second quarter. Arrowstreet Capital Limited Partnership now owns 291,249 shares of the basic materials company's stock valued at $3,882,000 after acquiring an additional 124,831 shares in the last quarter. U S Global Investors Inc. increased its holdings in DRDGOLD by 91.3% during the 2nd quarter. U S Global Investors Inc. now owns 265,755 shares of the basic materials company's stock worth $3,543,000 after acquiring an additional 126,804 shares during the period. Finally, Rockefeller Capital Management L.P. bought a new stake in DRDGOLD during the 2nd quarter worth approximately $2,505,000. 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.