Sibanye Gold (NYSE:SBSW) Shares Gap Up - Here's Why

Key Points

• Sibanye Gold shares rose 1.8%, opening at $12.76 versus a prior close of $12.26 and last trading at $12.81 on volume of roughly 1.2 million shares.
• Analyst views remain mixed: Citigroup upgraded the stock to “buy” with a $13.50 target, while other firms issued “hold” or “sell” ratings. The consensus rating is “Hold,” with a $16.82 price target.
• Institutional ownership stands at 34.93%, with several major investors increasing their positions; a company director also bought 15,000 shares, though insiders own just 0.05% of the stock.

Sibanye Gold Limited (NYSE:SBSW - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $12.26, but opened at $12.76. Sibanye Gold shares last traded at $12.81, with a volume of 1,224,975 shares trading hands.

Analysts Set New Price Targets

SBSW has been the topic of several recent research reports. Wall Street Zen cut Sibanye Gold from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Zacks Research cut Sibanye Gold from a "hold" rating to a "strong sell" rating in a report on Thursday, July 9th. Citigroup upgraded Sibanye Gold from a "neutral" rating to a "buy" rating and set a $13.50 price objective on the stock in a research report on Thursday, August 13th. BMO Capital Markets lowered their price objective on Sibanye Gold from $14.00 to $12.00 and set a "market perform" rating on the stock in a research note on Tuesday, July 14th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Sibanye Gold in a report on Friday, July 17th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Sibanye Gold presently has a consensus rating of "Hold" and a consensus price target of $16.82.

Sibanye Gold Trading Up 1.8%

The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.86 and a current ratio of 1.78. The business's 50 day simple moving average is $9.54 and its 200 day simple moving average is $11.79.

Insider Activity

In other news, Director Richard Peter Menell purchased 15,000 shares of the business's stock in a transaction dated Tuesday, June 30th. The stock was acquired at an average price of $2.19 per share, for a total transaction of $32,850.00. Following the acquisition, the director directly owned 25,125 shares of the company's stock, valued at approximately $55,023.75. This represents a 148.15% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.05% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD acquired a new stake in Sibanye Gold during the fourth quarter worth $63,023,000. Deutsche Bank AG acquired a new position in shares of Sibanye Gold in the 4th quarter valued at $49,435,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Sibanye Gold by 81.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 7,315,944 shares of the company's stock valued at $104,252,000 after purchasing an additional 3,280,972 shares during the last quarter. Millennium Management LLC grew its holdings in shares of Sibanye Gold by 363.7% during the 1st quarter. Millennium Management LLC now owns 3,171,659 shares of the company's stock worth $14,526,000 after purchasing an additional 2,487,648 shares during the period. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Sibanye Gold by 196.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 3,576,255 shares of the company's stock worth $16,379,000 after purchasing an additional 2,370,443 shares during the period. 34.93% of the stock is currently owned by institutional investors and hedge funds.

About Sibanye Gold

Sibanye Gold NYSE: SBSW is a precious metals mining company headquartered in Johannesburg, South Africa. The company's core operations focus on the extraction, processing and exploration of gold. Through its South African gold mining operations, Sibanye Gold produces doré bars, gold in concentrate and carbon-in-leach product, leveraging both underground and surface mining techniques. The company also generates by-products such as uranium, copper and nickel, reflecting its commitment to maximizing resource recovery.

In addition to its South African footprint, Sibanye Gold has expanded into the platinum‐group metals (PGM) sector through its acquisition of Stillwater Mining Company in 2017.

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