Sasol (NYSE:SSL) Shares Gap Down After Analyst Downgrade

Key Points

• Sasol Ltd. shares experienced a significant gap down after Morgan Stanley downgraded the stock from an overweight to an equal weight rating, opening at $6.15 compared to a previous close of $6.64.
• Despite the downgrade, Wall Street Zen raised Sasol's rating from "buy" to "strong-buy," amidst mixed ratings from analysts, with an average rating of "Hold."
• Several hedge funds increased their positions in Sasol, with Millennium Management boosting its stake by 75.7% during the first quarter, reflecting ongoing interest from institutional investors.

Shares of Sasol Ltd. (NYSE:SSL - Get Free Report) gapped down prior to trading on Monday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. The stock had previously closed at $6.64, but opened at $6.15. Sasol shares last traded at $6.20, with a volume of 532,428 shares traded.

Separately, Wall Street Zen raised shares of Sasol from a "buy" rating to a "strong-buy" rating in a research report on Sunday, September 7th. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has an average rating of "Hold".

Hedge Funds Weigh In On Sasol

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Millennium Management LLC increased its position in Sasol by 75.7% during the first quarter. Millennium Management LLC now owns 1,450,355 shares of the oil and gas company's stock worth $6,135,000 after acquiring an additional 624,911 shares during the period. Two Sigma Investments LP lifted its position in Sasol by 100.7% during the 4th quarter. Two Sigma Investments LP now owns 1,054,238 shares of the oil and gas company's stock worth $4,807,000 after buying an additional 528,860 shares in the last quarter. American Century Companies Inc. raised its holdings in Sasol by 25.5% during the 2nd quarter. American Century Companies Inc. now owns 890,502 shares of the oil and gas company's stock worth $3,936,000 after purchasing an additional 180,827 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its holdings in Sasol by 11.9% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 767,312 shares of the oil and gas company's stock worth $3,392,000 after purchasing an additional 81,769 shares during the last quarter. Finally, Two Sigma Advisers LP increased its stake in shares of Sasol by 108.8% in the 4th quarter. Two Sigma Advisers LP now owns 610,200 shares of the oil and gas company's stock valued at $2,783,000 after acquiring an additional 317,900 shares during the last quarter. Institutional investors own 1.21% of the company's stock.

Sasol Trading Down 6.3%

The business has a 50 day moving average price of $5.94 and a 200 day moving average price of $4.81. The company has a current ratio of 1.87, a quick ratio of 1.27 and a debt-to-equity ratio of 0.66. The company has a market capitalization of $4.03 billion, a P/E ratio of 2.74, a PEG ratio of 0.36 and a beta of 0.81.

About Sasol

Sasol Limited operates as a chemical and energy company in South Africa and internationally. It offers alumina, such as battery materials, catalyst supports, abrasives and polishing, and polymer additives; cobalt fischer-tropsch catalysts; carbon-based and recarburiser products; graphite electrodes; and mono-ethylene glycol and chlor-alkali products, monomers, mining chemicals and reagents, blends and hydrocarbons, methanol products, polymers, phenolics, and fertilizers.

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