Sprott (TSE:SII) Trading 19.8% Higher - Should You Buy?

Key Points

• Shares jumped 19.8% — Sprott traded up to C$207.65 on Wednesday (intraday high C$208.79) with volume rising about 74% to 169,155 shares.
• Several analysts raised ratings and targets (Canaccord, RBC, BMO, TD), leaving a consensus rating of "Moderate Buy" and a consensus target of C$202.00.
• Sprott reported C$1.57 EPS on C$198.8M revenue with a 20.7% ROE and 24.7% net margin, but trades at a high P/E of 79.6 and offers a modest dividend yield of 0.8% (C$1.60 annualized).

Shares of Sprott Inc. (TSE:SII - Get Free Report) traded up 19.8% during trading on Wednesday . The company traded as high as C$208.79 and last traded at C$207.65. 169,155 shares traded hands during trading, an increase of 74% from the average session volume of 97,017 shares. The stock had previously closed at C$173.38.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Canaccord Genuity Group upped their price target on Sprott from C$130.00 to C$200.00 and gave the stock a "buy" rating in a report on Friday, February 20th. Royal Bank Of Canada upgraded Sprott from a "sector perform" rating to an "outperform" rating and upped their target price for the company from C$186.00 to C$218.00 in a research note on Friday, February 20th. BMO Capital Markets upped their target price on Sprott from C$192.00 to C$210.00 in a research note on Monday, April 13th. Finally, TD Securities upped their target price on Sprott from C$176.00 to C$180.00 and gave the company a "hold" rating in a research note on Friday, February 20th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Sprott currently has an average rating of "Moderate Buy" and a consensus target price of C$202.00.

Sprott Stock Up 19.8%

The business has a 50 day moving average of C$199.56 and a 200 day moving average of C$161.41. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.78 and a quick ratio of 2.89. The firm has a market capitalization of C$5.35 billion, a price-to-earnings ratio of 79.56, a price-to-earnings-growth ratio of -3.34 and a beta of 1.56.

Sprott (TSE:SII - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported C$1.57 EPS for the quarter. The business had revenue of C$198.75 million during the quarter. Sprott had a return on equity of 20.71% and a net margin of 24.67%. On average, equities analysts anticipate that Sprott Inc. will post 3.2178828 EPS for the current year.

Sprott Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Investors of record on Wednesday, June 3rd will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Tuesday, May 19th. Sprott's dividend payout ratio is presently 49.81%.

Sprott Company Profile

Sprott Inc is an alternative asset manager operating in Canada. The company has six reportable segments: Exchange Listed Products, which includes management services to the company's closed-end physical trusts and exchange-traded funds, both of which are actively traded on public securities exchanges; Managed equities segment provides asset management and sub-advisory services to the Company's branded funds, fixed-term LPs and managed accounts; Lending segment provides lending and streaming activities through limited partnership vehicles; Brokerage segment includes activities of Canadian and U.S.

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