Sibanye Gold (NYSE:SBSW) Given New $12.00 Price Target at BMO Capital Markets

Key Points

• BMO Capital Markets cut its price target on Sibanye Gold from $14.00 to $12.00 while keeping a market perform rating. The new target still implies about 42.77% upside from the prior close.
• Analyst sentiment on the stock remains mixed, with recent downgrades from Zacks Research and Wall Street Zen, while Weiss Ratings reiterated a sell rating. MarketBeat data shows a current consensus rating of Hold and a consensus price target of $17.93.
• Sibanye Gold shares opened at $8.40, below both the 50-day moving average of $10.60 and the 200-day moving average of $13.36. The article also notes a recent insider purchase by Director Richard Peter Menell and continued institutional ownership at 34.93%.

Sibanye Gold (NYSE:SBSW - Get Free Report) had its target price dropped by analysts at BMO Capital Markets from $14.00 to $12.00 in a research note issued on Tuesday,Benzinga reports. The brokerage presently has a "market perform" rating on the stock. BMO Capital Markets' price target would indicate a potential upside of 42.77% from the company's previous close.

A number of other equities research analysts also recently commented on the company. Zacks Research downgraded Sibanye Gold from a "hold" rating to a "strong sell" rating in a report on Thursday, July 9th. Wall Street Zen cut shares of Sibanye Gold from a "buy" rating to a "hold" rating in a research note on Sunday. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Sibanye Gold in a report on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Sibanye Gold currently has a consensus rating of "Hold" and a consensus target price of $17.93.

Sibanye Gold Price Performance

Sibanye Gold stock opened at $8.40 on Tuesday. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.86 and a current ratio of 1.78. Sibanye Gold has a 1-year low of $7.09 and a 1-year high of $21.29. The stock's 50 day moving average price is $10.60 and its 200 day moving average price is $13.36.

Insiders Place Their Bets

In related news, Director Richard Peter Menell purchased 15,000 shares of the business's stock in a transaction dated Tuesday, June 30th. The stock was bought at an average cost of $2.19 per share, with a total value of $32,850.00. Following the completion of the acquisition, the director directly owned 25,125 shares in the company, valued at $55,023.75. The trade was a 148.15% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.05% of the company's stock.

Institutional Trading of Sibanye Gold

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Redhawk Wealth Advisors Inc. raised its stake in Sibanye Gold by 12.8% in the 2nd quarter. Redhawk Wealth Advisors Inc. now owns 16,434 shares of the company's stock valued at $140,000 after purchasing an additional 1,869 shares during the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of Sibanye Gold during the 2nd quarter worth about $9,126,000. Fermata Advisors LLC grew its holdings in shares of Sibanye Gold by 12.4% during the second quarter. Fermata Advisors LLC now owns 11,313 shares of the company's stock worth $96,000 after buying an additional 1,250 shares in the last quarter. VectorGlobal IAG Inc. purchased a new stake in shares of Sibanye Gold during the first quarter worth about $1,016,000. Finally, Empowered Funds LLC raised its position in shares of Sibanye Gold by 62.3% in the first quarter. Empowered Funds LLC now owns 76,092 shares of the company's stock valued at $937,000 after buying an additional 29,221 shares during the last quarter. Hedge funds and other 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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