Super Group (SGHC) Limited (NYSE:SGHC) experienced a notable increase in its share price on Wednesday, following the announcement of a dividend. The stock, which closed at $9.67 on the previous trading day, opened at $10.32, reflecting a substantial gap up. By the end of the trading session, shares were last seen at $9.7760, with a trading volume of 595,754 shares.
The dividend of $0.25 per share will be distributed to stockholders on February 9, 2024. The record date for this dividend is set for February 2, 2024, with the ex-dividend date also falling on the same day. Currently, Super Group’s dividend payout ratio stands at 37.21%, indicating a balanced approach to returning value to shareholders while retaining capital for growth.
Analyst Ratings and Market Reactions
Following the dividend announcement, several equities analysts provided updates on their ratings for Super Group shares. Notably, Needham & Company LLC raised its price target from $15.00 to $17.00 and maintained a “buy” rating. Similarly, BTIG Research increased its target from $19.00 to $20.00, also awarding the stock a “buy” rating.
Conversely, Wall Street Zen downgraded Super Group from a “strong-buy” to a “buy” rating, while Benchmark adjusted its target price down from $18.00 to $17.00, retaining a “buy” recommendation. Macquarie reiterated an “outperform” rating with a price target of $19.00. Overall, the stock garnered two “strong buy” ratings, eight “buy” ratings, and one “hold” rating, leading to an average rating of “buy” with an average target price of $16.30.
Financial Performance Overview
Super Group’s recent financial results indicate a healthy business trajectory. The company reported an earnings per share (EPS) of $0.19 for its most recent quarter, surpassing the consensus estimate of $0.14 by $0.05. Revenue for the quarter reached $557 million, significantly exceeding analysts’ expectations of $436.19 million. The firm demonstrated a net margin of 10.05% and a return on equity of 43.14%. Analysts project that Super Group will achieve an EPS of $0.29 for the current fiscal year.
In terms of financial ratios, the company shows a current ratio and quick ratio of 1.75, alongside a low debt-to-equity ratio of 0.02. The stock has a 50-day moving average of $11.26 and a 200-day moving average of $11.75. Super Group holds a market capitalization of $4.88 billion and a price-to-earnings (P/E) ratio of 22.53, with a beta of 1.08, indicating moderate volatility compared to the market.
Institutional Investor Activity
Institutional trading activity suggests growing interest in Super Group (SGHC). AQR Capital Management LLC increased its holdings by 235.3% in the first quarter, acquiring a total of 167,969 shares valued at approximately $1,082,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake by 4.4%, owning 89,062 shares worth around $574,000 after purchasing an additional 3,783 shares.
Millennium Management LLC notably expanded its holdings by 127.2%, bringing total ownership to 2,737,329 shares, valued at approximately $17.63 million. Additionally, Jane Street Group LLC and Allianz Asset Management GmbH acquired new positions, valued at around $1.52 million and $3.27 million respectively. Overall, institutional investors and hedge funds collectively own 5.09% of the company’s stock.
Super Group (NYSE: SGHC) operates as a global sports betting and iGaming provider, offering online wagering solutions under well-known brands such as Betway and Spin. The company’s technology platform supports a variety of betting options, including fixed-odds and in-play sports betting, along with a comprehensive casino game portfolio. Holding licenses in several regulated jurisdictions, including the United Kingdom, Malta, and selected states in the United States, Super Group is well-positioned for continued growth in the expanding online gaming sector.
