Sprott (NYSE:SII) Announces Earnings Results, Misses Estimates By $0.01 EPS

Sprott (NYSE:SII) released its earnings results on Wednesday. The company reported $1.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.01), RTT News reports. Sprott had a net margin of 21.99% and a return on equity of 23.54%. During the same period in the previous year, the business 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 Up 7.6%

SII traded up $7.94 on Wednesday, reaching $112.69. The company had a trading volume of 431,190 shares, compared to its average volume of 218,061. Sprott has a 1 year low of $61.94 and a 1 year high of $169.63. The stock has a market capitalization of $2.90 billion, a PE ratio of 34.46 and a beta of 0.83. The stock has a 50-day moving average price of $114.55 and a 200-day moving average price of $129.44.

Sprott Announces Dividend

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

Wall Street Analyst Weigh In

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

Institutional Trading of Sprott

A number of hedge funds and other institutional investors have recently made changes to their positions in SII. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Sprott by 63.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 385 shares of the company’s stock valued at $38,000 after purchasing an additional 150 shares during the last quarter. Advisory Services Network LLC purchased a new position in Sprott during the 3rd quarter worth approximately $74,000. Barclays PLC increased its position in Sprott by 318.8% during the fourth quarter. Barclays PLC now owns 1,734 shares of the company’s stock worth $170,000 after buying an additional 1,320 shares during the period. Integrated Wealth Concepts LLC acquired a new position in Sprott during the fourth quarter worth approximately $207,000. Finally, Virtu Financial LLC purchased a new stake in Sprott in the fourth quarter valued at approximately $209,000. Institutional investors and hedge funds own 28.30% of the company’s stock.

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.