Sibanye Gold (NYSE:SBSW) Stock Price Up 7.3% - Here's What Happened

Key Points

• Sibanye Gold shares jumped 7.3% in midday trading, reaching $12.81 and last trading at $12.68, although volume was 53% below the stock’s average daily volume.
• Analyst sentiment remains mixed: Citigroup upgraded the stock to “buy” with a $13.50 target, while other firms issued “hold” or “sell” ratings. MarketBeat reports an overall “hold” consensus and an average price target of $16.82.
• Institutional ownership stands at 34.93%, with major investors including Millennium Management and Goldman Sachs significantly increasing their positions during the first quarter.

Shares of Sibanye Gold Limited (NYSE:SBSW - Get Free Report) shot up 7.3% during mid-day trading on Friday . The stock traded as high as $12.81 and last traded at $12.68. Approximately 2,846,524 shares traded hands during mid-day trading, a decline of 53% from the average daily volume of 6,062,438 shares. The stock had previously closed at $11.82.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Wall Street Zen lowered Sibanye Gold from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Citigroup upgraded Sibanye Gold from a "neutral" rating to a "buy" rating and set a $13.50 target price on the stock in a research note on Thursday, August 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sibanye Gold in a report on Friday, July 17th. Zacks Research cut shares of Sibanye Gold from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 9th. Finally, BMO Capital Markets lowered their price target on shares of 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. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Sibanye Gold has an average rating of "Hold" and an average target price of $16.82.

Sibanye Gold Trading Up 6.2%

The company has a current ratio of 1.78, a quick ratio of 0.86 and a debt-to-equity ratio of 0.73. The company's 50-day moving average is $9.32 and its 200-day moving average is $11.94.

Insider Activity 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 stock was acquired at an average cost of $2.19 per share, for a total transaction of $32,850.00. Following the transaction, the director directly owned 25,125 shares in the company, valued at $55,023.75. This represents a 148.15% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. 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 stock. AQR Capital Management LLC lifted its stake in Sibanye Gold by 113.9% in the 1st quarter. AQR Capital Management LLC now owns 39,909 shares of the company's stock valued at $183,000 after purchasing an additional 21,248 shares during the last quarter. Millennium Management LLC boosted its stake 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 valued at $14,526,000 after purchasing an additional 2,487,648 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in 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 last quarter. Ashton Thomas Private Wealth LLC bought a new stake in shares of Sibanye Gold in the first quarter worth $55,000. Finally, Envestnet Asset Management Inc. bought a new stake in shares of Sibanye Gold in the second quarter worth $186,000. 34.93% of the stock is owned by institutional investors.

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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