Sibanye Gold (NYSE:SBSW) Shares Gap Up - Here's Why

Key Points

• Sibanye Gold stock gapped up before the open, opening at $12.87 vs a prior close of $11.72 and trading up about 14.7% (last $13.2260) on roughly 1.75 million shares.
• Analyst coverage is mixed—two Buys, two Holds and one Sell—leaving a MarketBeat consensus rating of Hold with a $19.93 consensus price target.
• The company paid an annual dividend of $0.2614 (ex-dividend March 20) and insiders boosted positions, including a director purchase of 12,000 shares at $13.34.

Sibanye Gold Limited (NYSE:SBSW - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $11.72, but opened at $12.87. Sibanye Gold shares last traded at $13.2260, with a volume of 1,754,765 shares traded.

Analysts Set New Price Targets

Several analysts recently issued reports on SBSW shares. Wall Street Zen lowered Sibanye Gold from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 14th. Royal Bank Of Canada cut their price objective on Sibanye Gold from $18.00 to $17.00 and set an "outperform" rating for the company in a report on Thursday, February 19th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Sibanye Gold in a report on Tuesday, April 21st. HSBC upgraded Sibanye Gold from a "hold" rating to a "buy" rating and set a $24.80 target price on the stock in a report on Friday, January 23rd. Finally, Zacks Research cut Sibanye Gold from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $19.93.

Sibanye Gold Stock Up 14.7%

The business has a 50-day simple moving average of $13.26 and a two-hundred day simple moving average of $13.84. 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 Announces Dividend

The firm also recently declared an annual dividend, which was paid on Thursday, April 2nd. Stockholders of record on Friday, March 20th were given a $0.2614 dividend. This represents a dividend yield of 292.0%. The ex-dividend date of this dividend was Friday, March 20th.

Insider Activity

In other Sibanye Gold news, Director Thabane Vincent Maphai purchased 12,000 shares of the stock in a transaction dated Monday, March 16th. The shares were bought at an average cost of $13.34 per share, with a total value of $160,080.00. Following the completion of the transaction, the director owned 140,178 shares in the company, valued at $1,869,974.52. This trade represents a 9.36% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard Peter Menell purchased 2,500 shares of the stock in a transaction dated Tuesday, March 24th. The stock was acquired at an average cost of $11.43 per share, for a total transaction of $28,575.00. Following the completion of the transaction, the director owned 2,500 shares of the company's stock, valued at $28,575. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Sibanye Gold

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership grew its position in shares of Sibanye Gold by 81.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 7,315,944 shares of the company's stock valued at $104,252,000 after purchasing an additional 3,280,972 shares during the last quarter. Condire Management LP grew its position in shares of Sibanye Gold by 5.6% in the fourth quarter. Condire Management LP now owns 5,244,469 shares of the company's stock valued at $74,734,000 after purchasing an additional 279,540 shares during the last quarter. Price T Rowe Associates Inc. MD acquired a new stake in shares of Sibanye Gold in the fourth quarter valued at about $63,023,000. Goehring & Rozencwajg Associates LLC grew its position in shares of Sibanye Gold by 20.6% in the first quarter. Goehring & Rozencwajg Associates LLC now owns 4,270,069 shares of the company's stock valued at $52,607,000 after purchasing an additional 730,389 shares during the last quarter. Finally, ABC Arbitrage SA grew its position in shares of Sibanye Gold by 260.1% in the third quarter. ABC Arbitrage SA now owns 4,032,812 shares of the company's stock valued at $45,329,000 after purchasing an additional 2,912,995 shares during the last quarter. 34.93% of the stock is owned by institutional investors and hedge funds.

About Sibanye Gold

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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