Sprott (NYSE:SII) Shares Up 7.5% - Here's Why

Key Points

• Sprott shares jumped 7.5% to about $124.12 during Tuesday trading, with approximately 191,337 shares changing hands.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $230 price target, despite recent downgrades to “Hold” and a lower buy grade.
• Sprott recently reported quarterly EPS of $1.33, narrowly missing estimates, while revenue of $71.78 million fell short of forecasts. The company also declared a quarterly dividend of $0.40 per share, yielding about 1.3%.

Sprott Inc. (NYSE:SII - Get Free Report)'s stock price was up 7.5% during trading on Tuesday . The stock traded as high as $123.24 and last traded at $124.1180. Approximately 191,337 shares traded hands during trading, a decline of 12% from the average daily volume of 218,651 shares. The stock had previously closed at $115.49.

Analyst Ratings Changes

Several brokerages have recently weighed in on SII. TD Securities restated a "hold" rating on shares of Sprott in a research note on Thursday. Wall Street Zen lowered Sprott from a "buy" rating to a "hold" rating in a research report on Saturday. Weiss Ratings downgraded shares of Sprott from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, July 30th. Finally, Royal Bank Of Canada upped their price objective on Sprott from $218.00 to $230.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $230.00.

Sprott Price Performance

The business has a fifty day moving average price of $113.38 and a two-hundred day moving average price of $129.36. The firm has a market cap of $3.19 billion, a PE ratio of 30.40 and a beta of 0.83.

Sprott (NYSE:SII - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.33 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.34 by ($0.01). The firm had revenue of $71.78 million for the quarter, compared to analyst estimates of $82.45 million. Sprott had a net margin of 26.36% and a return on equity of 28.40%. During the same period in the previous year, the business posted $0.52 EPS.

Sprott Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 17th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.60 dividend on an annualized basis and a yield of 1.3%. Sprott's payout ratio is 39.22%.

Hedge Funds Weigh In On Sprott

Hedge funds and other institutional investors have recently made changes to their positions in the business. Capital Research Global Investors boosted its stake in shares of Sprott by 88.1% in the 4th quarter. Capital Research Global Investors now owns 991,339 shares of the company's stock valued at $97,101,000 after purchasing an additional 464,177 shares in the last quarter. Invesco Ltd. bought a new position in Sprott in the second quarter valued at approximately $28,948,000. Vanguard Group Inc. lifted its stake in Sprott by 1,514.9% in the third quarter. Vanguard Group Inc. now owns 314,811 shares of the company's stock valued at $26,165,000 after buying an additional 295,317 shares during the period. Mawer Investment Management Ltd. boosted its holdings in Sprott by 19.3% during the fourth quarter. Mawer Investment Management Ltd. now owns 1,515,002 shares of the company's stock worth $148,349,000 after buying an additional 245,173 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Sprott by 98.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 488,978 shares of the company's stock worth $40,660,000 after buying an additional 242,021 shares during the last quarter. 28.30% of the stock is owned by institutional investors.

About Sprott

Sprott Inc is a Toronto‐based alternative asset manager specializing in precious metals, real assets and related investment vehicles. Founded in 1981 by Eric Sprott, the firm has built a reputation for offering physically backed bullion trusts, exchange‐traded funds (ETFs), mutual funds and private managed accounts that provide exposure to gold, silver, platinum and other hard assets. Sprott's product lineup also includes royalty and streaming strategies, which grant investors long‐term participation in mining project cash flows without direct operational risk.

In addition to its flagship physical bullion trusts, Sprott offers actively managed equity portfolios that focus on companies engaged in the exploration, development and production of precious metals.

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