Sibanye Gold (NYSE:SBSW) Shares Gap Up – Still a Buy?

Sibanye Gold Limited (NYSE:SBSW) shares gapped up before the market opened on Wednesday . The stock had previously closed at $12.39, but opened at $13.82. Sibanye Gold shares last traded at $13.0920, with a volume of 2,449,575 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Zacks Research raised Sibanye Gold from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 1st. HSBC raised Sibanye Gold from a “hold” rating to a “buy” rating and set a $24.80 price objective on the stock in a research note on Friday, January 23rd. Royal Bank Of Canada lowered their price target on Sibanye Gold from $18.00 to $17.00 and set an “outperform” rating for the company in a report on Thursday, February 19th. Wall Street Zen cut Sibanye Gold from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 14th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Sibanye Gold in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $19.93.

Sibanye Gold Price Performance

The company has a quick ratio of 0.86, a current ratio of 1.78 and a debt-to-equity ratio of 0.73. The firm has a fifty day simple moving average of $14.79 and a 200 day simple moving average of $13.64.

Sibanye Gold Dividend Announcement

The firm also recently declared an annual dividend, which was paid on Thursday, April 2nd. Shareholders of record on Friday, March 20th were issued a $0.2614 dividend. The ex-dividend date was Friday, March 20th. This represents a yield of 292.0%.

Insider Activity

In other news, Director Richard Peter Menell acquired 2,500 shares of Sibanye Gold stock in a transaction dated Tuesday, March 24th. The shares were acquired at an average cost of $11.43 per share, with a total value of $28,575.00. Following the purchase, the director directly owned 2,500 shares of the company’s stock, valued at approximately $28,575. This trade represents a ∞ increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Thabane Vincent Maphai bought 12,000 shares of the company’s stock in a transaction that occurred on Monday, March 16th. The shares were bought at an average price of $13.34 per share, for a total transaction of $160,080.00. Following the completion of the acquisition, the director owned 140,178 shares in the company, valued at approximately $1,869,974.52. This trade represents a 9.36% increase in their position. The SEC filing for this purchase provides additional information. 0.05% of the stock is owned by insiders.

Institutional Investors Weigh In On Sibanye Gold

Several hedge funds have recently modified their holdings of the stock. Moors & Cabot Inc. raised its holdings in shares of Sibanye Gold by 4.8% during the 4th quarter. Moors & Cabot Inc. now owns 14,250 shares of the company’s stock valued at $203,000 after buying an additional 650 shares during the period. EverSource Wealth Advisors LLC raised its holdings in shares of Sibanye Gold by 6.6% during the 4th quarter. EverSource Wealth Advisors LLC now owns 10,591 shares of the company’s stock valued at $151,000 after buying an additional 656 shares during the period. GAMMA Investing LLC raised its holdings in shares of Sibanye Gold by 22.2% during the 3rd quarter. GAMMA Investing LLC now owns 5,147 shares of the company’s stock valued at $58,000 after buying an additional 934 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Sibanye Gold by 40.3% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 3,481 shares of the company’s stock valued at $39,000 after buying an additional 1,000 shares during the period. Finally, Blue Trust Inc. raised its holdings in shares of Sibanye Gold by 84.1% during the 4th quarter. Blue Trust Inc. now owns 2,193 shares of the company’s stock valued at $31,000 after buying an additional 1,002 shares during the period. 34.93% of the stock is currently owned by hedge funds and other 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.