Super Group (SGHC) (NYSE:SGHC) Sets New 1-Year High - Still a Buy?

Key Points

• Super Group (SGHC) hit a new 52-week high, trading as high as $14.86 after a recent rally, with shares closing just below that level. The move comes amid strong trading volume and a stock price well above its 50-day and 200-day moving averages.
• Wall Street sentiment remains generally positive, with seven Buy ratings and two Hold ratings, and an average price target of $17.57. Recent analyst actions included higher target prices from Citizens JMP and continued Buy/Outperform calls from firms like Citigroup and BTIG.
• The company recently reported solid fundamentals, including $0.13 EPS on $578 million in quarterly revenue, and it paid a quarterly dividend of $0.05. However, insider selling in recent months totaled more than 104,000 shares, even as several institutional investors increased their stakes.

Shares of Super Group (SGHC) Limited (NYSE:SGHC - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $14.86 and last traded at $14.8350, with a volume of 2802261 shares changing hands. The stock had previously closed at $14.67.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SGHC. Weiss Ratings raised Super Group (SGHC) from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 18th. Citigroup reaffirmed an "outperform" rating on shares of Super Group (SGHC) in a research note on Wednesday, May 20th. BTIG Research reiterated a "buy" rating and issued a $16.00 price objective on shares of Super Group (SGHC) in a report on Thursday, April 16th. Citizens Jmp increased their target price on Super Group (SGHC) from $16.00 to $17.00 and gave the company a "market outperform" rating in a research note on Wednesday, May 20th. Finally, Zacks Research cut Super Group (SGHC) from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $17.57.

Super Group (SGHC) Stock Performance

The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.61 and a current ratio of 1.61. The stock's 50-day moving average is $13.36 and its 200 day moving average is $11.57. The firm has a market cap of $7.50 billion, a P/E ratio of 30.71 and a beta of 1.06.

Super Group (SGHC) (NYSE:SGHC - Get Free Report) last posted its earnings results on Saturday, April 18th. The company reported $0.13 earnings per share for the quarter. Super Group (SGHC) had a return on equity of 42.85% and a net margin of 10.58%.The firm had revenue of $578.00 million for the quarter. On average, research analysts predict that Super Group will post 0.8 earnings per share for the current year.

Super Group (SGHC) Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd were given a $0.05 dividend. The ex-dividend date was Tuesday, June 23rd. This represents a $0.20 annualized dividend and a dividend yield of 1.3%. Super Group (SGHC)'s payout ratio is currently 41.67%.

Insider Buying and Selling

In other news, CFO Wyk Alinda Van sold 78,837 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $13.70, for a total transaction of $1,080,066.90. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Kirsty Farrah Ross sold 25,356 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $13.00, for a total transaction of $329,628.00. Following the completion of the sale, the chief operating officer directly owned 27,000 shares in the company, valued at $351,000. This represents a 48.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 104,201 shares of company stock valued at $1,409,805. 10.41% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Invesco Ltd. raised its holdings in shares of Super Group (SGHC) by 324.3% in the fourth quarter. Invesco Ltd. now owns 4,671,798 shares of the company's stock valued at $55,828,000 after purchasing an additional 3,570,825 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of Super Group (SGHC) by 97.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 4,437,534 shares of the company's stock worth $58,575,000 after buying an additional 2,193,989 shares during the last quarter. Norges Bank acquired a new position in shares of Super Group (SGHC) during the 4th quarter worth about $23,791,000. Millennium Management LLC grew its holdings in shares of Super Group (SGHC) by 127.2% in the 1st quarter. Millennium Management LLC now owns 2,737,329 shares of the company's stock valued at $17,628,000 after acquiring an additional 1,532,666 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its position in shares of Super Group (SGHC) by 74.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,920,185 shares of the company's stock valued at $22,946,000 after acquiring an additional 818,455 shares during the last quarter. 5.09% of the stock is owned by institutional investors and hedge funds.

About Super Group (SGHC)

Super Group NYSE: SGHC is a global sports betting and iGaming operator that offers online wagering and gaming solutions under well-known brands such as Betway and Spin. The company’s technology platform supports fixed-odds and in-play sports betting, virtual sports, eSports wagering and a diverse suite of casino games, including slots, table games and live dealer experiences. Super Group’s digital infrastructure is designed to deliver a seamless, secure user experience across desktop and mobile devices.

The company holds operating licenses in multiple regulated jurisdictions, including the United Kingdom, Malta, Italy, Spain and selected states in the United States.

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