Sprott (NYSE:SII) Trading 12.7% Higher After Better-Than-Expected Earnings

Key Points

• Shares jumped 12.7% after Sprott reported an outsized quarterly EPS of $999.00 versus analysts' estimate of $0.93, with the stock trading as high as $145.27 (last $142.84) from a prior close of $126.77.
• Sprott announced a quarterly dividend of $0.40 (annualized $1.60) with an ex-dividend/record date of May 19 and payment on June 3, implying a yield of about 1.1%.
• Analysts show a mixed but overall "Moderate Buy" consensus with a $132.00 target; the company has a market cap of $3.76 billion and a P/E of 56.45.

Sprott Inc. (NYSE:SII - Get Free Report) traded up 12.7% on Wednesday following a better than expected earnings announcement. The company traded as high as $145.27 and last traded at $142.8430. 46,183 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 239,541 shares. The stock had previously closed at $126.77.

The company reported $999.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $998.07. Sprott had a return on equity of 19.47% and a net margin of 23.62%.

Sprott Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Tuesday, May 19th will be paid a $0.40 dividend. The ex-dividend date of this dividend is Tuesday, May 19th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.1%. Sprott's dividend payout ratio (DPR) is 61.54%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on SII. Wall Street Zen lowered shares of Sprott from a "buy" rating to a "hold" rating in a report on Saturday, April 25th. TD Securities restated a "hold" rating on shares of Sprott in a report on Friday, February 20th. Finally, Royal Bank Of Canada raised shares of Sprott from a "sector perform" rating to an "outperform" rating in a research report on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, Sprott has an average rating of "Moderate Buy" and a consensus target price of $132.00.

Hedge Funds Weigh In On Sprott

Several institutional investors have recently bought and sold shares of the company. Cumberland Partners Ltd grew its position in Sprott by 0.4% in the 4th quarter. Cumberland Partners Ltd now owns 32,300 shares of the company's stock valued at $3,167,000 after acquiring an additional 120 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its position in Sprott by 63.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 385 shares of the company's stock valued at $38,000 after acquiring an additional 150 shares in the last quarter. Rialto Wealth Management LLC grew its position in Sprott by 26.0% in the 4th quarter. Rialto Wealth Management LLC now owns 800 shares of the company's stock valued at $78,000 after acquiring an additional 165 shares in the last quarter. Kathmere Capital Management LLC grew its position in Sprott by 5.3% in the 4th quarter. Kathmere Capital Management LLC now owns 3,458 shares of the company's stock valued at $339,000 after acquiring an additional 174 shares in the last quarter. Finally, Mariner LLC grew its position in Sprott by 2.8% in the 4th quarter. Mariner LLC now owns 6,950 shares of the company's stock valued at $681,000 after acquiring an additional 192 shares in the last quarter. 28.30% of the stock is owned by institutional investors and hedge funds.

Sprott Stock Performance

The company has a market capitalization of $3.76 billion, a price-to-earnings ratio of 56.45 and a beta of 0.78. The firm has a 50-day simple moving average of $145.32 and a two-hundred day simple moving average of $117.04.

Sprott Company Profile

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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