Sprott (NYSE:SII) Issues Earnings Results

Sprott (NYSE:SII) issued its quarterly earnings results on Wednesday. The company reported $1.33 EPS for the quarter, missing the consensus estimate of $1.34 by ($0.01), RTT News reports. Sprott had a return on equity of 23.54% and a net margin of 21.99%.The business had revenue of $71.78 million during the quarter, compared to the consensus estimate of $82.45 million. During the same period in the prior year, the firm earned $0.52 earnings per share.

Here are the key takeaways from Sprott’s conference call:

• Precious-metals volatility pressured results: Gold fell 14.1% and silver 22% in the quarter, driving a CAD 9.5 billion decline in AUM to CAD 55.6 billion and CAD 400 million of net redemptions, primarily from physical precious-metals trusts.
• Despite the quarterly pullback, average AUM rose 70% year over year to CAD 63.9 billion, while adjusted EBITDA doubled to CAD 50.8 million and net income increased to CAD 34.3 million, reflecting higher average AUM and operating leverage.
• Critical-materials products remained a growth area, generating positive net sales even in a difficult market. Management highlighted continued investor interest in copper, uranium, and rare earths, with the Rare Earths ETF Ex-China reaching CAD 50 million in assets in 32 trading days.
• The company reported a 71% adjusted EBITDA margin, a debt-free balance sheet, strong liquidity, and continued share repurchases that become more aggressive at lower stock prices. Management also expects to close its fourth private lending fund sometime in 2027.

Sprott Stock Performance

Shares of NYSE:SII traded down $4.04 on Thursday, hitting $111.60. The stock had a trading volume of 141,387 shares, compared to its average volume of 218,275. The firm’s 50 day moving average price is $114.30 and its 200-day moving average price is $129.44. Sprott has a twelve month low of $61.94 and a twelve month high of $169.63. The company has a market capitalization of $2.87 billion, a price-to-earnings ratio of 34.10 and a beta of 0.83.

Sprott Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Monday, August 17th. Sprott’s payout ratio is currently 48.93%.

Hedge Funds Weigh In On Sprott

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SII. Stansberry Asset Management LLC acquired a new stake in shares of Sprott in the fourth quarter valued at approximately $246,000. FIL Ltd bought a new stake in shares of Sprott during the fourth quarter worth $223,000. Rothschild Wealth LLC bought a new position in Sprott in the fourth quarter valued at about $211,000. Summit Financial LLC acquired a new stake in Sprott in the fourth quarter worth about $220,000. Finally, Focus Partners Wealth acquired a new stake in Sprott in the third quarter worth about $232,000. 28.30% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on SII shares. TD Securities reissued a “hold” rating on shares of Sprott in a report on Thursday. Wall Street Zen upgraded Sprott from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Royal Bank Of Canada raised their price objective on Sprott from $218.00 to $230.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Finally, Weiss Ratings cut Sprott from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $230.00.

About Sprott

Sprott Inc is a Toronto?based alternative asset manager specializing in precious metals, real assets and related investment vehicles. Founded in 1981 by Eric Sprott, the firm has built a reputation for offering physically backed bullion trusts, exchange?traded funds (ETFs), mutual funds and private managed accounts that provide exposure to gold, silver, platinum and other hard assets. Sprott’s product lineup also includes royalty and streaming strategies, which grant investors long?term participation in mining project cash flows without direct operational risk.

In addition to its flagship physical bullion trusts, Sprott offers actively managed equity portfolios that focus on companies engaged in the exploration, development and production of precious metals.