DRDGOLD (NYSE:DRD) Shares Gap Up - Still a Buy?

Key Points

• DRDGOLD shares rose 5.6%, opening at $23.27 versus the prior close of $21.57 and later trading near $22.99.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $35.00; however, some firms recently downgraded the stock to “hold” or “buy.”
• Institutional ownership is 14.70%, with several major investors—including Arrowstreet Capital, AQR Capital Management, and Millennium Management—significantly increasing their positions.

DRDGOLD Limited (NYSE:DRD - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $21.57, but opened at $23.27. DRDGOLD shares last traded at $22.99, with a volume of 113,063 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have issued reports on DRD. Wall Street Zen cut shares of DRDGOLD from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 4th. Weiss Ratings reiterated a "buy (b-)" rating on shares of DRDGOLD in a research report on Monday. Zacks Research cut shares of DRDGOLD from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Finally, HC Wainwright restated a "buy" rating and set a $35.00 target price on shares of DRDGOLD in a report on Thursday, July 16th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $35.00.

DRDGOLD Trading Up 5.6%

The business has a fifty day moving average price of $22.35 and a 200-day moving average price of $28.39.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership grew its position in DRDGOLD by 239.6% during the third quarter. Arrowstreet Capital Limited Partnership now owns 989,089 shares of the basic materials company's stock valued at $27,299,000 after buying an additional 697,840 shares during the period. Amundi purchased a new position in DRDGOLD in the 3rd quarter worth approximately $17,467,000. AQR Capital Management LLC lifted its holdings in shares of DRDGOLD by 265.4% in the fourth quarter. AQR Capital Management LLC now owns 314,679 shares of the basic materials company's stock worth $9,758,000 after buying an additional 228,561 shares in the last quarter. Millennium Management LLC lifted its stake in DRDGOLD by 91.9% in the 3rd quarter. Millennium Management LLC now owns 397,000 shares of the basic materials company's stock worth $10,957,000 after purchasing an additional 190,152 shares in the last quarter. Finally, Lazard Asset Management LLC purchased a new stake in shares of DRDGOLD in the fourth quarter worth about $5,351,000. 14.70% of the stock is owned by hedge funds and other institutional investors.

DRDGOLD Company Profile

DRDGOLD NYSE: DRD is a South African gold producer focused on the retreatment of surface tailings from historic mining operations on the Witwatersrand Basin. The company recovers fine gold particles from low‐grade tailings using an integrated, carbon‐in‐leach (CIL) processing circuit that is designed to maximize yield and minimize environmental impact. DRDGOLD's operations are centered on sustainable resource utilization, transforming previously discarded material into saleable gold doré bars.

The company operates two primary tailings retreatment facilities on the West Rand and East Rand of Gauteng Province.

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