Investing

Unusual Call Option Trade in Sibanye Stillwater Worth $121.5K

George Maybach

Published: May 24, 2023 3:27 am

Last Updated: May 24, 2023 11:31 am

On May 23, 2023 at 15:43:07 ET an unusually large $121.50K block of Call contracts in Sibanye Stillwater Limited – ADR (SBSW) was bought, with a strike price of $7.50 / share, expiring in 605 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 3.21 sigmas above the mean, placing it in the 99.91th percentile of all recent large trades made in SBSW options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 265 funds or institutions reporting positions in Sibanye Stillwater Limited – ADR. This is unchanged over the last quarter. Average portfolio weight of all funds dedicated to SBSW is 0.25%, a decrease of 6.12%. Total shares owned by institutions increased in the last three months by 7.57% to 65,334K shares. The put/call ratio of SBSW is 0.60, indicating a bullish outlook.

Analyst Price Forecast Suggests 47.46% Upside

As of May 11, 2023, the average one-year price target for Sibanye Stillwater Limited – ADR is 11.43. The forecasts range from a low of 6.25 to a high of $23.71. The average price target represents an increase of 47.46% from its latest reported closing price of 7.75.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Sibanye Stillwater Limited – ADR is 153,364MM, an increase of 10.90%. The projected annual non-GAAP EPS is 10.05.

What are Other Shareholders Doing?

Condire Management holds 3,791K shares representing 0.13% ownership of the company. No change in the last quarter.

Aqr Capital Management holds 3,663K shares representing 0.13% ownership of the company. In it’s prior filing, the firm reported owning 3,442K shares, representing an increase of 6.04%. The firm decreased its portfolio allocation in SBSW by 40.66% over the last quarter.

Van Eck Associates holds 3,128K shares representing 0.11% ownership of the company. In it’s prior filing, the firm reported owning 3,154K shares, representing a decrease of 0.84%. The firm decreased its portfolio allocation in SBSW by 31.80% over the last quarter.

Invesco holds 2,926K shares representing 0.10% ownership of the company. In it’s prior filing, the firm reported owning 2,522K shares, representing an increase of 13.81%. The firm decreased its portfolio allocation in SBSW by 92.02% over the last quarter.

Citadel Advisors holds 2,847K shares representing 0.10% ownership of the company. In it’s prior filing, the firm reported owning 1,576K shares, representing an increase of 44.65%. The firm increased its portfolio allocation in SBSW by 15.20% over the last quarter.

Sibanye Stillwater Limited – ADR Declares $0.27 Dividend

On February 28, 2023 the company declared a regular semi-annual dividend of $0.27 per share ($0.54 annualized). Shareholders of record as of March 24, 2023 received the payment on April 10, 2023. Previously, the company paid $0.31 per share.

At the current share price of $7.75 / share, the stock’s dividend yield is 6.96%.

Looking back five years and taking a sample every week, the average dividend yield has been 8.13%, the lowest has been 2.66%, and the highest has been 24.09%. The standard deviation of yields is 5.92 (n=237).

The current dividend yield is 0.20 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.08. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

Sibanye Stillwater Background Information
(This description is provided by the company.)

Sibanye-Stillwater is a leading international precious metals mining company, with a diverse portfolio of platinum group metal (PGM) operations in the United States and Southern Africa, gold operations and projects in South Africa, and copper, gold and PGM exploration properties in North and South America. It is the world’s largest primary producer of platinum and rhodium, the second largest primary producer of palladium and a top tier gold producer, ranking third globally, on a gold-equivalent basis, as well as a significant producer of other PGMs and associated minerals such as chrome. We are also the globally leading recycler and processor of spent PGM catalytic converter materials.

This article originally appeared on Fintel