Sibanye Gold (NYSE:SBSW) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sibanye Gold from a “buy” to a “hold,” adding to a mixed analyst picture that now includes buy, hold, and sell ratings. The stock’s consensus rating remains Hold, with a consensus target price of $19.93.
• The shares were little changed, slipping 0.2% to $8.54 in Friday trading. The stock is trading well below its 50-day average of $10.67 and 200-day average of $13.42, and it sits near the lower end of its 12-month range.
• Institutional investors remain active in the name, with several firms boosting or initiating positions, while director Richard Peter Menell recently bought 15,000 shares. Institutions own about 34.93% of the company, while insider ownership is very small.

Sibanye Gold (NYSE:SBSW - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Sunday.

A number of other research analysts also recently issued reports on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Sibanye Gold in a research report on Tuesday, April 21st. Zacks Research downgraded shares of Sibanye Gold from a "hold" rating to a "strong sell" rating in a research note on Thursday. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $19.93.

Sibanye Gold Stock Down 0.2%

Sibanye Gold stock traded down $0.02 during mid-day trading on Friday, hitting $8.54. The stock had a trading volume of 4,143,794 shares, compared to its average volume of 5,341,612. The stock has a 50-day simple moving average of $10.67 and a two-hundred day simple moving average of $13.42. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.78 and a quick ratio of 0.86. Sibanye Gold has a 12 month low of $7.09 and a 12 month high of $21.29.

Insider Activity

In related news, Director Richard Peter Menell acquired 15,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The stock was acquired at an average cost of $2.19 per share, with a total value of $32,850.00. Following the completion of the purchase, 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 filing with the Securities & Exchange Commission, which is available at the SEC website. 0.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sibanye Gold

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

Sibanye Gold Company Profile

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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