Super Group (SGHC) (NYSE:SGHC) Stock Falls 6.1% - What's Next?

Key Points

• Super Group shares fell 6.1% to about $10.66 in Friday trading, with volume roughly half the stock’s average daily volume.
• Analyst sentiment remains generally positive: six analysts rate the stock a Buy and three rate it a Hold, producing a Moderate Buy consensus and an $18 average price target.
• The company reported $684 million in quarterly revenue, exceeding estimates, but narrowly missed EPS expectations; it also pays a $0.05 quarterly dividend, while insiders have sold approximately $2.6 million in shares over the past 90 days.

Super Group (SGHC) Limited (NYSE:SGHC - Get Free Report)'s stock price was down 6.1% during mid-day trading on Friday. The company traded as low as $10.67 and last traded at $10.6570. Approximately 1,451,195 shares traded hands during trading, a decline of 50% from the average daily volume of 2,916,561 shares. The stock had previously closed at $11.35.

Wall Street Analysts Forecast Growth

SGHC has been the subject of a number of recent research reports. Weiss Ratings lowered Super Group (SGHC) from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, September 24th. Needham & Company LLC raised their price target on Super Group (SGHC) from $17.00 to $18.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Citigroup reiterated an "outperform" rating on shares of Super Group (SGHC) in a research report on Wednesday, July 8th. Wall Street Zen lowered Super Group (SGHC) from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. Finally, BTIG Research raised their target price on shares of Super Group (SGHC) from $16.00 to $19.00 and gave the stock a "buy" rating in a report on Friday, July 17th. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $18.00.

Super Group (SGHC) Trading Down 4.6%

The firm has a market cap of $5.48 billion, a PE ratio of 14.99 and a beta of 1.10. The firm has a fifty day simple moving average of $12.57 and a two-hundred day simple moving average of $13.03. The company has a current ratio of 1.83, a quick ratio of 1.83 and a debt-to-equity ratio of 0.02.

Super Group (SGHC) (NYSE:SGHC - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.22 EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.01). The business had revenue of $684.00 million for the quarter, compared to the consensus estimate of $659.90 million. Super Group (SGHC) had a net margin of 15.22% and a return on equity of 47.37%. Equities analysts forecast that Super Group will post 0.80 EPS for the current year.

Super Group (SGHC) Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 22nd were issued a $0.05 dividend. The ex-dividend date was Tuesday, September 22nd. This represents a $0.20 annualized dividend and a yield of 1.8%. Super Group (SGHC)'s dividend payout ratio is 27.78%.

Insider Activity at Super Group (SGHC)

In other news, CEO Neal Menashe sold 48,440 shares of Super Group (SGHC) stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $13.97, for a total transaction of $676,706.80. Following the sale, the chief executive officer owned 730,733 shares of the company's stock, valued at approximately $10,208,340.01. The trade was a 6.22% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Wyk Van sold 22,644 shares of Super Group (SGHC) stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $13.97, for a total transaction of $316,336.68. Following the sale, the chief financial officer directly owned 27,566 shares in the company, valued at $385,097.02. The trade was a 45.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 188,935 shares of company stock valued at $2,636,428. 10.41% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SGHC. Bank of America Corp DE lifted its stake in shares of Super Group (SGHC) by 172.5% in the 1st quarter. Bank of America Corp DE now owns 1,158,102 shares of the company's stock valued at $12,508,000 after purchasing an additional 733,073 shares during the period. Prospect Capital Advisors LLC raised its holdings in Super Group (SGHC) by 42.9% in the first quarter. Prospect Capital Advisors LLC now owns 1,042,100 shares of the company's stock worth $11,255,000 after purchasing an additional 313,100 shares in the last quarter. Anson Funds Management LP lifted its position in Super Group (SGHC) by 108.3% during the first quarter. Anson Funds Management LP now owns 531,214 shares of the company's stock valued at $5,737,000 after buying an additional 276,214 shares during the period. Sei Investments Co. lifted its position in Super Group (SGHC) by 3.3% during the first quarter. Sei Investments Co. now owns 410,386 shares of the company's stock valued at $4,432,000 after buying an additional 13,048 shares during the period. Finally, Segall Bryant & Hamill LLC purchased a new position in Super Group (SGHC) during the first quarter valued at $2,662,000. Hedge funds and other institutional investors own 5.09% of the company's stock.

Super Group (SGHC) Company Profile

Super Group (SGHC) Ltd. is a global online sports betting and gaming company. Its principal brands are Betway, an online sportsbook and casino operator, and Spin, an online casino brand. Through these businesses, Super Group offers sports wagering, casino games, live casino products and related digital gaming services.

The company serves customers across multiple international markets, including regions in Africa, Asia, Europe, North America and South America, subject to local regulatory requirements.

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