Sibanye Gold (NYSE:SBSW) Shares Gap Up - Still a Buy?

Key Points

• Sibanye Gold shares surged 7.9%, opening at $10.84 after closing at $9.89, though the stock remains below its 200-day moving average of $12.48.
• Analyst sentiment has weakened: recent firms issued sell or hold recommendations, while the consensus rating is “Hold” with a $17.93 price target.
• Institutional investors own 34.93% of the company, and a director recently purchased 15,000 shares; insiders overall own only 0.05% of the stock.

Shares of Sibanye Gold Limited (NYSE:SBSW - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $9.89, but opened at $10.84. Sibanye Gold shares last traded at $10.8250, with a volume of 2,724,002 shares.

Analysts Set New Price Targets

Several analysts have commented on the stock. Zacks Research lowered shares of Sibanye Gold from a "hold" rating to a "strong sell" rating in a report on Thursday, July 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Sibanye Gold in a research report on Friday, July 17th. Wall Street Zen lowered Sibanye Gold from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Finally, BMO Capital Markets lowered their target price on Sibanye Gold from $14.00 to $12.00 and set a "market perform" rating for the company in a research note on Tuesday, July 14th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $17.93.

Sibanye Gold Trading Up 7.9%

The stock's 50-day moving average price is $9.26 and its two-hundred day moving average price is $12.48. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.78 and a quick ratio of 0.86.

Insider Transactions at Sibanye Gold

In other Sibanye Gold news, Director Richard Peter Menell acquired 15,000 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The shares were acquired at an average price 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 of the company's stock, valued at approximately $55,023.75. The trade was a 148.15% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.05% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sibanye Gold

Several large investors have recently made changes to their positions in SBSW. AdvisorNet Financial Inc grew its stake in shares of Sibanye Gold by 1,462.5% in the 1st quarter. AdvisorNet Financial Inc now owns 2,000 shares of the company's stock worth $25,000 after buying an additional 1,872 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. bought a new stake in Sibanye Gold in the fourth quarter worth $29,000. Blue Trust Inc. grew its stake in shares of Sibanye Gold by 84.1% in the fourth quarter. Blue Trust Inc. now owns 2,193 shares of the company's stock worth $31,000 after acquiring an additional 1,002 shares during the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of Sibanye Gold by 116.8% during the third quarter. PNC Financial Services Group Inc. now owns 3,298 shares of the company's stock valued at $37,000 after acquiring an additional 1,777 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its holdings in shares of Sibanye Gold by 40.3% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 3,481 shares of the company's stock valued at $39,000 after acquiring an additional 1,000 shares in the last quarter. 34.93% of the stock is currently owned by hedge funds and other institutional investors.

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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