Sibanye Gold (NYSE:SBSW) Shares Gap Up - Time to Buy?

Key Points

• Sibanye Gold shares jumped, opening at $11.28 versus a prior close of $10.56 and last trading near $11.44.
• Analyst sentiment remains mixed: Citigroup upgraded the stock to “buy” with a $13.50 target, while other firms issued hold or sell ratings. The overall consensus is “Hold”, with a target price of $16.82.
• Institutional investors own 34.93% of the company and several major funds increased their positions, while insider ownership remains minimal at 0.05%.

Sibanye Gold Limited (NYSE:SBSW - Get Free Report)'s share price gapped up prior to trading on Wednesday . The stock had previously closed at $10.56, but opened at $11.28. Sibanye Gold shares last traded at $11.4390, with a volume of 946,619 shares traded.

Analyst Ratings Changes

SBSW has been the topic of a number of recent analyst reports. Citigroup raised shares of Sibanye Gold from a "neutral" rating to a "buy" rating and set a $13.50 price target on the stock in a report on Thursday, August 13th. Wall Street Zen downgraded shares of Sibanye Gold from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Zacks Research lowered shares of Sibanye Gold from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 9th. BMO Capital Markets dropped their target price on Sibanye Gold from $14.00 to $12.00 and set a "market perform" rating on the stock in a research report on Tuesday, July 14th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Sibanye Gold in a research note on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $16.82.

Sibanye Gold Stock Performance

The business has a 50-day moving average price of $9.23 and a 200-day moving average price of $12.03. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.86 and a current ratio of 1.78.

Insiders Place Their Bets

In related news, Director Richard Peter Menell acquired 15,000 shares of the firm's stock in a transaction on Tuesday, June 30th. The shares were acquired 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 approximately $55,023.75. This trade represents a 148.15% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.05% of the company's stock.

Institutional Trading of Sibanye Gold

A number of institutional investors and hedge funds have recently modified their holdings of SBSW. Arrowstreet Capital Limited Partnership boosted its stake in Sibanye Gold by 21.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 8,903,127 shares of the company's stock worth $109,687,000 after purchasing an additional 1,587,183 shares during the last quarter. Condire Management LP raised 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 buying an additional 279,540 shares during the last quarter. Price T Rowe Associates Inc. MD purchased a new position in shares of Sibanye Gold in the fourth quarter worth about $63,023,000. Goehring & Rozencwajg Associates LLC lifted its stake 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 worth $52,607,000 after buying an additional 730,389 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in Sibanye Gold by 196.6% during the first quarter. Goldman Sachs Group Inc. now owns 3,576,255 shares of the company's stock worth $16,379,000 after acquiring an additional 2,370,443 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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