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

Key Points

• Sibanye Gold shares rose 3.1%, opening at $10.58 versus a prior close of $10.28, with roughly 2 million shares traded.
• Analyst sentiment is moderately positive: the stock has a consensus “Moderate Buy” rating and an average price target of $16.32, despite some analysts recently lowering their targets.
• The company declared a $0.4985 dividend payable October 6 to shareholders of record September 18; institutional investors and hedge funds own 34.93% of the stock.

Sibanye Gold Limited (NYSE:SBSW - Get Free Report) shares gapped up prior to trading on Friday. The stock had previously closed at $10.28, but opened at $10.58. Sibanye Gold shares last traded at $10.5050, with a volume of 1,962,876 shares traded.

Wall Street Analysts Forecast Growth

SBSW has been the subject of several research reports. Wall Street Zen upgraded Sibanye Gold from a "buy" rating to a "strong-buy" rating in a research report on Sunday, September 6th. Royal Bank Of Canada reduced their price target on Sibanye Gold from $16.50 to $15.00 and set an "outperform" rating on the stock in a report on Wednesday, September 16th. BMO Capital Markets lowered 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. Weiss Ratings upgraded shares of Sibanye Gold from a "sell (d-)" rating to a "hold (c)" rating in a report on Tuesday. Finally, Citigroup raised shares of Sibanye Gold from a "neutral" rating to a "buy" rating and set a $13.50 target price on the stock in a report on Thursday, August 13th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $16.32.

Sibanye Gold Trading Up 3.1%

The company has a quick ratio of 1.37, a current ratio of 2.72 and a debt-to-equity ratio of 0.62. The firm's fifty day moving average is $10.86 and its 200-day moving average is $11.20.

Sibanye Gold Dividend Announcement

The firm also recently disclosed a dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Friday, September 18th will be paid a $0.4985 dividend. 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 business's stock in a transaction that occurred on Tuesday, June 30th. The shares were bought at an average price of $2.19 per share, for a total transaction of $32,850.00. Following the transaction, the director directly owned 25,125 shares in the company, valued at approximately $55,023.75. This trade represents a 148.15% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sibanye Gold

Institutional investors have recently added to or reduced their stakes in the business. AdvisorNet Financial Inc boosted its holdings in shares of Sibanye Gold by 1,462.5% during the 1st quarter. AdvisorNet Financial Inc now owns 2,000 shares of the company's stock worth $25,000 after buying an additional 1,872 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in shares of Sibanye Gold by 3,289.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,915 shares of the company's stock valued at $70,000 after acquiring an additional 4,770 shares during the period. Blue Trust Inc. lifted its position in shares of Sibanye Gold by 127.4% during the 1st quarter. Blue Trust Inc. now owns 4,987 shares of the company's stock valued at $61,000 after acquiring an additional 2,794 shares during the period. Hantz Financial Services Inc. bought a new position in Sibanye Gold during the fourth quarter worth $73,000. Finally, Stevens Capital Partners bought a new position in Sibanye Gold during the first quarter worth $124,000. 34.93% of the stock is owned by institutional investors and hedge funds.

Sibanye Gold Company Profile

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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