DRDGOLD Limited (DRD) Volatility Spurs A Quest For Clarity


Renaissance Technologies LLC recently announced the acquisition of new stake in DRDGOLD Limited (NYSE:DRD). The institutional investor has increased its shareholding in the Basic Materials company by 5.45% to 1.19 million shares with purchase of 61731.0 shares. This fresh investment now brings its stake to 1.38% valued currently at $11.67 million. In addition, Connor, Clark & Lunn Investment M… raised its holdings by 86885.0 to 0.34 million shares. And Jane Street Capital LLC has lifted its position by 62.09% or 31828.0 shares – to 83093.0 shares.

With over 0.53 million DRDGOLD Limited (DRD) shares trading Monday and a closing price of $15.73 on the day, the dollar volume was approximately $8.3 million. The shares have shown a positive weekly performance of 4.03% and its price on 07/06/20 gained nearly 1.94%. Currently, there are 68.70M common shares owned by the public and among those 55.72M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 2 analysts who have offered their price forecasts for DRD have a consensus price objective of $8.71. The analysts have set the share’s price value over the next 12 months at a high of $11.50 and a low of $5.93 should the stock experience a downside. Incidentally, analysts’ outlook for the DRDGOLD Limited stock is 2.00 for the next 12 months. The average price target is -36.78% below its last price level and a downside to the estimated low will see the stock lose -165.26% over that period. But an upside of -36.78% will see the stock hit the forecast high price target while mean target price for the stock is $8.71.

Insiders at the company have nil transactions over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC).

The top 3 mutual fund holders in DRDGOLD Limited are LF Ruffer Investment Funds – Gold, US Global GO GOLD & Precious Meta, and GR Dynamik. LF Ruffer Investment Funds – Gold owns 4.74 million shares of the company’s stock, all valued at over $46.27 million. The company sold -0.24 million shares recently to bring their total holdings to about 5.48% of the shares outstanding. US Global GO GOLD & Precious Meta has total holdings of 0.17 million shares valued at over $1.61 million and representing 0.19% of the shares outstanding. GR Dynamik has total holdings to over 79358.0 shares at a value of $0.78 million. GR Dynamik now owns shares totaling to 0.09% of the shares outstanding.

Shares of DRDGOLD Limited (NYSE: DRD) opened at $15.44, up $0.01 from a prior closing price of $15.43. However, the script later closed the day at $15.73, up 1.94%. The company’s stock has a 5-day price change of 4.03% and 171.35% over the past three months. DRD shares are trading 210.50% year to date (YTD), with the 12-month market performance up to 445.49% higher. It has a 12-month low price of $2.66 and touched a high of $16.18 over the same period. Currently, 0.53 million shares have been traded, compared to an average intraday trading volume of 786.69K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 24.30%, 46.79%, and 132.51% respectively.

Institutional ownership of DRDGOLD Limited (NYSE: DRD) shares accounts for 10.20% of the company’s 68.70M shares outstanding. Mutual fund holders own 2.29%, while other institutional holders and individual stakeholders account for 5.78% and — respectively.

It has a market capitalization of $1.32B and a beta (3y monthly) value of 1.02. The stock’s trailing 12-month PE ratio is 41.50, while the earnings-per-share (ttm) stands at $0.38. The company has a PEG of 4.15 and a Quick Ratio of 1.40 with the debt-to-equity ratio at 0.02. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.80% over the week and 6.89% over the month.

Earnings per share for the fiscal year are expected to increase by 649.70%, and -20.21% over the next financial year. EPS should shrink at an annualized rate of 10.00% over the next five years, compared to 24.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 2 brokerage firm advisors rate DRDGOLD Limited (DRD) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 0 of the 2 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the DRD, a number of firms have released research notes about the stock. H.C. Wainwright stated their Buy rating for the stock in a research note on September 05, 2019, with the firm’s price target at $13.75. Macquarie coverage for the DRDGOLD Limited (DRD) stock in a research note released on March 08, 2019 offered a Outperform rating with a price target of . HSBC Securities was of a view on May 05, 2017 that the stock is Hold, while JP Morgan gave the stock Underweight rating on July 12, 2016 . JP Morgan on their part issued Neutral rating on September 14, 2015.


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