DRDGOLD (NYSE:DRD) Stock Falls 6.4% - Here's Why

Key Points

• DRDGOLD shares fell 6.4% to about $24.89 in Tuesday’s midday trading, with volume 84% below the average session volume.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus and an average price target of $35; recent firms upgraded their ratings or raised a target.
• Company insiders sold a combined 644,448 shares worth about $1.62 million over the past 90 days, including sales by the CEO and another insider.

DRDGOLD Limited (NYSE:DRD - Get Free Report)'s stock price traded down 6.4% during mid-day trading on Tuesday. The stock traded as low as $24.46 and last traded at $24.8890. 48,482 shares were traded during mid-day trading, a decline of 84% from the average session volume of 312,292 shares. The stock had previously closed at $26.58.

Analysts Set New Price Targets

Several research firms have recently commented on DRD. Weiss Ratings raised DRDGOLD from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, October 26th. Zacks Research raised shares of DRDGOLD from a "strong sell" rating to a "hold" rating in a research report on Monday, October 19th. Finally, HC Wainwright lifted their price objective on shares of DRDGOLD from $33.00 to $35.00 and gave the stock a "buy" rating in a research note on Thursday, August 20th. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, DRDGOLD presently has an average rating of "Moderate Buy" and an average target price of $35.00.

DRDGOLD Stock Performance

The business's 50 day simple moving average is $25.36 and its two-hundred day simple moving average is $27.28.

DRDGOLD (NYSE:DRD - Get Free Report) last posted its earnings results on Wednesday, August 19th. The basic materials company reported $0.83 EPS for the quarter. The firm had revenue of $188.03 million during the quarter. On average, sell-side analysts expect that DRDGOLD Limited will post 3.12 EPS for the current year.

DRDGOLD Dividend Announcement

The business also recently declared a dividend, which was paid on Monday, September 21st. Stockholders of record on Friday, September 11th were paid a $0.7379 dividend. The ex-dividend date of this dividend was Friday, September 11th. This represents a dividend yield of 551.0%.

Insider Activity at DRDGOLD

In related news, CEO Daniel Pretorius sold 117,980 shares of DRDGOLD stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $2.44, for a total value of $287,871.20. Following the transaction, the chief executive officer directly owned 1,144,012 shares of the company's stock, valued at $2,791,389.28. The trade was a 9.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Dean Lindecke sold 48,948 shares of the company's stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $2.44, for a total value of $119,433.12. Following the completion of the sale, the insider owned 48,948 shares in the company, valued at $119,433.12. The trade was a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 644,448 shares of company stock valued at $1,615,568 over the last ninety days. Insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On DRDGOLD

Hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC lifted its holdings in shares of DRDGOLD by 21.9% in the 1st quarter. EverSource Wealth Advisors LLC now owns 5,895 shares of the basic materials company's stock worth $173,000 after purchasing an additional 1,059 shares in the last quarter. Signaturefd LLC grew its position in DRDGOLD by 27.9% in the 3rd quarter. Signaturefd LLC now owns 4,982 shares of the basic materials company's stock valued at $121,000 after purchasing an additional 1,086 shares during the period. TD Waterhouse Canada Inc. grew its position in DRDGOLD by 9.7% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 31,343 shares of the basic materials company's stock valued at $760,000 after purchasing an additional 2,780 shares during the period. Dimensional Fund Advisors LP increased its stake in DRDGOLD by 3.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 169,473 shares of the basic materials company's stock valued at $4,973,000 after purchasing an additional 5,019 shares in the last quarter. Finally, SG Americas Securities LLC bought a new stake in DRDGOLD during the 1st quarter valued at $154,000. Institutional investors own 14.70% of the company's stock.

DRDGOLD Company Profile

DRDGOLD Limited is a South African gold producer focused on recovering gold from mine waste rather than operating conventional underground mines. The company reprocesses surface tailings—material left over from earlier mining—to extract gold and reclaim land. Its operations include the Ergo Mining and Far West Gold Recoveries businesses, which work across the historic Witwatersrand gold-mining region around Johannesburg and the West Rand. The recovered gold is refined and sold as bullion. DRDGOLD has shifted its business over time from traditional gold mining toward retreatment of surface deposits.

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