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 changing hands.

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

Institutional Trading of Sasol

A number of institutional investors have recently bought and sold shares of SSL. BNP Paribas Financial Markets grew its holdings in Sasol by 124.4% in the fourth quarter. BNP Paribas Financial Markets now owns 114,093 shares of the oil and gas company's stock worth $520,000 after purchasing an additional 63,244 shares during the period. Jane Street Group LLC grew its stake in shares of Sasol by 962.5% in the 4th quarter. Jane Street Group LLC now owns 117,288 shares of the oil and gas company's stock valued at $535,000 after buying an additional 106,249 shares during the period. American Century Companies Inc. increased its position in Sasol by 7.6% in the 1st quarter. American Century Companies Inc. now owns 709,675 shares of the oil and gas company's stock valued at $3,002,000 after buying an additional 50,412 shares in the last quarter. Two Sigma Investments LP raised its stake 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 during the period. Finally, Two Sigma Advisers LP boosted its holdings in Sasol by 108.8% in the fourth quarter. Two Sigma Advisers LP now owns 610,200 shares of the oil and gas company's stock worth $2,783,000 after acquiring an additional 317,900 shares in the last quarter. Institutional investors own 1.21% of the company's stock.

Sasol Stock Down 6.3%

The company has a quick ratio of 1.27, a current ratio of 1.87 and a debt-to-equity ratio of 0.66. The stock has a 50 day simple moving average of $5.96 and a 200 day simple moving average of $4.83. The stock has a market cap of $4.04 billion, a price-to-earnings ratio of 2.74, a PEG ratio of 0.36 and a beta of 0.80.

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.