Sasol (NYSE:SSL) Shares Gap Down - Should You Sell?

Key Points

• Sasol shares fell sharply at the open, dropping from a prior close of $16.34 to $15.60 before trading near $15.82.
• Analyst sentiment has improved, with Bank of America upgrading the stock to “buy” and other firms raising their ratings; however, the overall consensus remains “Hold.”
• Sasol reported quarterly earnings of $0.56 per share on $4.61 billion in revenue, while insiders sold approximately $801,000 of stock over the past 90 days.

Sasol Ltd. (NYSE:SSL - Get Free Report)'s share price gapped down before the market opened on Monday. The stock had previously closed at $16.34, but opened at $15.60. Sasol shares last traded at $15.8150, with a volume of 191,480 shares.

Analysts Set New Price Targets

A number of analysts have recently commented on SSL shares. Bank of America upgraded Sasol from a "neutral" rating to a "buy" rating in a report on Wednesday, September 9th. Wall Street Zen upgraded Sasol from a "hold" rating to a "strong-buy" rating in a report on Saturday, September 5th. Weiss Ratings raised Sasol from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. Finally, Zacks Research upgraded Sasol from a "strong sell" rating to a "hold" rating in a report on Monday, August 31st. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold".

Sasol Stock Performance

The stock has a 50 day simple moving average of $13.40 and a 200 day simple moving average of $12.54. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.17 and a current ratio of 1.79.

Sasol (NYSE:SSL - Get Free Report) last released its quarterly earnings results on Friday, August 14th. The oil and gas company reported $0.56 earnings per share for the quarter. The company had revenue of $4.61 billion during the quarter. As a group, equities research analysts predict that Sasol Ltd. will post 2.71 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Victor Bester sold 2,852 shares of Sasol stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $12.70, for a total transaction of $36,220.40. Following the sale, the executive vice president owned 26,855 shares of the company's stock, valued at $341,058.50. The trade was a 9.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Sandile Lawrence Siyaya sold 2,842 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $12.70, for a total value of $36,093.40. Following the completion of the transaction, the executive vice president owned 301 shares in the company, valued at approximately $3,822.70. This trade represents a 90.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 60,412 shares of company stock valued at $800,983 in the last 90 days. Company insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On Sasol

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Assenagon Asset Management S.A. raised its stake in Sasol by 123.3% during the 2nd quarter. Assenagon Asset Management S.A. now owns 1,381,209 shares of the oil and gas company's stock worth $13,563,000 after buying an additional 762,796 shares during the period. Pictet Asset Management Holding SA acquired a new stake in shares of Sasol in the 1st quarter valued at about $11,284,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Sasol by 3.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 796,208 shares of the oil and gas company's stock valued at $10,319,000 after purchasing an additional 23,994 shares in the last quarter. Quantinno Capital Management LP boosted its position in Sasol by 40.6% during the 1st quarter. Quantinno Capital Management LP now owns 166,465 shares of the oil and gas company's stock worth $2,157,000 after acquiring an additional 48,086 shares during the last quarter. Finally, Public Employees Retirement System of Ohio raised its holdings in shares of Sasol by 14.3% in the first quarter. Public Employees Retirement System of Ohio now owns 159,063 shares of the oil and gas company's stock valued at $2,061,000 after purchasing an additional 19,940 shares during the last quarter. 1.21% of the stock is currently owned by institutional investors.

About Sasol

Sasol Limited is an integrated chemicals and energy company headquartered in Johannesburg, South Africa. The company develops and commercializes technologies that convert coal and natural gas into fuels, chemical feedstocks and other products, including through Fischer–Tropsch processes. Its portfolio includes fuel components, solvents, alcohols, surfactants, waxes, polymers and other specialty and performance chemicals used in industrial and consumer applications.

Sasol's operations have historically been centered in South Africa, where the company operates major energy and chemicals facilities, with additional manufacturing, research and marketing activities in international markets.

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