Sibanye Gold (NYSE:SBSW) Shares Gap Down - Here's What Happened

Key Points

• Sibanye Gold shares fell 4.9%, opening at $9.98 after previously closing at $10.61, with trading volume exceeding 1.1 million shares.
• Analyst sentiment remained moderately positive: RBC and BMO cut their price targets, while other firms upgraded the stock; consensus stood at “Moderate Buy” with an average target of $16.32.
• The company announced a $0.4985-per-share dividend payable October 6, while institutional investors owned 34.93% of the stock and several major funds increased their positions.

Shares of Sibanye Gold Limited (NYSE:SBSW - Get Free Report) gapped down prior to trading on Monday. The stock had previously closed at $10.61, but opened at $9.98. Sibanye Gold shares last traded at $10.0710, with a volume of 1,169,377 shares trading hands.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Royal Bank Of Canada reduced their target price on shares of Sibanye Gold from $16.50 to $15.00 and set an "outperform" rating for the company in a report on Wednesday, September 16th. Wall Street Zen raised shares of Sibanye Gold from a "buy" rating to a "strong-buy" rating in a report on Sunday, September 6th. Zacks Research raised Sibanye Gold from a "strong sell" rating to a "hold" rating in a research report on Monday, September 7th. Weiss Ratings upgraded Sibanye Gold from a "sell (d-)" rating to a "hold (c)" rating in a research note on Tuesday, September 22nd. Finally, BMO Capital Markets reduced their price objective on Sibanye Gold from $14.00 to $12.00 and set a "market perform" rating for the company in a research note on Tuesday, July 14th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $16.32.

Sibanye Gold Trading Down 4.9%

The company has a current ratio of 2.72, a quick ratio of 1.37 and a debt-to-equity ratio of 0.62. The company's 50-day moving average is $10.91 and its 200 day moving average is $11.17.

Sibanye Gold Dividend Announcement

The company also recently announced a dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Friday, September 18th will be paid a dividend of $0.4985 per share. This represents a dividend yield of 856.0%. The ex-dividend date of this dividend is Friday, September 18th.

Insider Activity at Sibanye Gold

In other Sibanye Gold news, Director Richard Menell bought 15,000 shares of the company's stock in a transaction dated Tuesday, June 30th. The shares were purchased at an average cost of $2.19 per share, for a total transaction of $32,850.00. Following the transaction, the director directly owned 25,125 shares of the company's stock, valued at approximately $55,023.75. The trade was a 148.15% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.05% of the stock is owned by company insiders.

Institutional Trading of Sibanye Gold

Institutional investors have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership raised its stake in shares of Sibanye Gold by 21.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,903,127 shares of the company's stock worth $109,687,000 after buying an additional 1,587,183 shares during the period. Goehring & Rozencwajg Associates LLC grew its stake in Sibanye Gold by 20.6% in the 1st quarter. Goehring & Rozencwajg Associates LLC now owns 4,270,069 shares of the company's stock valued at $52,607,000 after acquiring an additional 730,389 shares during the period. Dimensional Fund Advisors LP grew its stake in Sibanye Gold by 31.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,762,347 shares of the company's stock valued at $33,977,000 after acquiring an additional 655,929 shares during the period. BNP Paribas Financial Markets increased its holdings in Sibanye Gold by 28.7% in the 4th quarter. BNP Paribas Financial Markets now owns 2,255,549 shares of the company's stock worth $32,142,000 after acquiring an additional 503,180 shares in the last quarter. Finally, Renaissance Technologies LLC purchased a new stake in Sibanye Gold in the 1st quarter worth $22,507,000. 34.93% of the stock is owned by institutional investors and hedge funds.

About Sibanye Gold

Sibanye-Stillwater, formerly known as Sibanye Gold, is a multinational mining and metals company headquartered in South Africa. The company was established in 2012 through the restructuring of Gold Fields' South African assets and adopted the Sibanye-Stillwater name in 2016 as it expanded beyond gold mining.

The company produces gold, platinum-group metals (PGMs), and associated by-products. Its operations have included gold mines in South Africa; platinum, palladium, rhodium and other PGM assets in South Africa and the United States; and PGM recycling activities.

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