Sandstorm Gold (NYSE:SAND) Shares Gap Up – Should You Buy?

Sandstorm Gold Ltd. (NYSE:SAND)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $6.82, but opened at $7.11. Sandstorm Gold shares last traded at $7.05, with a volume of 744,516 shares.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Scotiabank increased their target price on Sandstorm Gold from $6.75 to $7.25 and gave the company a “sector perform” rating in a research report on Thursday, February 27th. StockNews.com upgraded Sandstorm Gold from a “hold” rating to a “buy” rating in a research note on Wednesday, February 26th. Raymond James reissued an “outperform” rating on shares of Sandstorm Gold in a research report on Friday, April 4th. Royal Bank of Canada lifted their price objective on shares of Sandstorm Gold from $6.50 to $7.00 and gave the stock an “outperform” rating in a research report on Friday, April 4th. Finally, HC Wainwright reduced their price objective on shares of Sandstorm Gold from $12.00 to $11.50 and set a “buy” rating for the company in a research note on Wednesday, February 19th. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, Sandstorm Gold presently has an average rating of “Moderate Buy” and an average price target of $8.81.

Sandstorm Gold Stock Up 4.0 %

The stock has a market capitalization of $2.34 billion, a PE ratio of 158.11 and a beta of 0.90. The company has a current ratio of 1.95, a quick ratio of 2.29 and a debt-to-equity ratio of 0.24. The company’s 50-day moving average is $6.66 and its 200 day moving average is $6.09.

Sandstorm Gold (NYSE:SAND) last posted its quarterly earnings data on Tuesday, February 18th. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.04 by ($0.03). The company had revenue of $47.40 million for the quarter, compared to analyst estimates of $67.49 million. Sandstorm Gold had a return on equity of 0.98% and a net margin of 8.11%. During the same quarter in the previous year, the firm posted ($0.04) earnings per share. As a group, analysts anticipate that Sandstorm Gold Ltd. will post 0.18 EPS for the current year.

Sandstorm Gold Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Stockholders of record on Monday, April 14th will be issued a $0.014 dividend. This represents a $0.06 dividend on an annualized basis and a dividend yield of 0.71%. The ex-dividend date of this dividend is Monday, April 14th. Sandstorm Gold’s dividend payout ratio is presently 100.00%.

Institutional Investors Weigh In On Sandstorm Gold

A number of institutional investors and hedge funds have recently modified their holdings of the company. PKO Investment Management Joint Stock Co purchased a new stake in shares of Sandstorm Gold in the fourth quarter worth about $1,177,000. Pullen Investment Management LLC grew its holdings in shares of Sandstorm Gold by 44.2% in the fourth quarter. Pullen Investment Management LLC now owns 180,819 shares of the company’s stock valued at $1,009,000 after purchasing an additional 55,459 shares during the period. Mackenzie Financial Corp increased its holdings in shares of Sandstorm Gold by 3.9% during the 4th quarter. Mackenzie Financial Corp now owns 127,166 shares of the company’s stock worth $711,000 after buying an additional 4,792 shares during the last quarter. Vident Advisory LLC increased its stake in Sandstorm Gold by 4.5% during the fourth quarter. Vident Advisory LLC now owns 140,760 shares of the company’s stock worth $785,000 after acquiring an additional 6,100 shares during the last quarter. Finally, Two Sigma Advisers LP increased its position in shares of Sandstorm Gold by 580.6% during the 4th quarter. Two Sigma Advisers LP now owns 2,314,684 shares of the company’s stock worth $12,916,000 after purchasing an additional 1,974,600 shares during the last quarter. Institutional investors and hedge funds own 51.97% of the company’s stock.

About Sandstorm Gold

Sandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements from companies that have advanced stage operating mines. It offers upfront payments for companies to acquire a stream and receives the right to purchase a percentage of a mine's production for the life of the mine.