Should Investors Be Selling Stillwater Mining (NYSE:SWC) Stock Following Today’s CIBC Downgrade?

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Stillwater Mining (NYSE:SWC) Receives a Downgrade

CIBC has given Stillwater Mining (NYSE:SWC) shares a new Sector Underperform rating in a recent research report released on Friday, 11 December. This was a decrease from the past Sector Perform rating.

From a total of 7 analysts covering Stillwater Mining Company (NYSE:SWC) stock, 2 rate it a ”Buy”, 1 a “Sell”, and 5 a ”Hold”. This means that 25% of the ratings are positive. The highest target price is $14 while the lowest target price is $9. The mean of all analyst targets is $11.43 with a 26.58% above today’s ($8.69) stock price. Stillwater Mining Company was the topic of 5 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 7 with “Sector Perform” rating. FBR Capital initiated SWC stock in a recent report from September 18 with “Mkt Perform” rating.

Approximately 465,281 shares of stock traded hands. Stillwater Mining Company (NYSE:SWC) has declined 37.15% since May 8, 2015 and is downtrending. It has underperformed by 34.13% the S&P500.

The overall sentiment of institutions has decreased to 0.66 in Q2 2015. Its down 0.31, from 0.97 in 2015Q2. The ratio worsened, as 61 institutions have sold all the shares of Stillwater Mining Company that they owned while 49 funds have taken shares off the table. 21 funds have purchased shares for the first time while 52 added to their positions. These institutions now hold 147.04 million shares or 7.72% less than the 159.33 million shares they owned in 2015Q2.

The Fund Contrarius Investment Management Ltd currently is holding shares equating to 5.7% of its total portfolio in Stillwater Mining Company representing a total of 5.57 million shares. Another fund,Platinum Investment Management Ltd, is holding a total of 13.54 million shares equating to 3.79% of their holdings. Additionally, Icm Asset Management Inc Wa has a 91,655 share stake in Stillwater Mining Company which represents 1.52% of their total portfolio. The Fund, Asa Gold & Precious Metals Ltd, based out of California, has also built up a stake in the stock, which represents a total of 1.36% of their total portfolio. Finally Killen Group Inc, a fund which is based in the state of Pennsylvania reported a total holdings of 1.11 million shares.

Stillwater Mining Company is engaged in the development, extraction, processing, smelting and refining of palladium, platinum and associated metals produced by mining a geological formation in south-central Montana, the J-M Reef and recycling spent catalytic converters and other industrial sources. The company has a market cap of $1.12 billion. The Firm is also engaged in expanding its mining activities on the J-M Reef, and holds the Marathon PGM-copper property adjacent to Lake Superior in northern Ontario, Canada and the Altar copper-gold property in the province of San Juan, Argentina. It currently has negative earnings. It operates five reportable business divisions: Mine Production, PGM Recycling, Canadian Properties, South American Properties and All Other.

According to Zacks Investment Research, “Stillwater Mining Company is engaged in the exploration, development, mining and production of platinum, palladium and associated metals from the Stillwater Complex in southern Montana, which the company believes is the only significant primary source of platinum and palladium outside the Republic of South Africa. The Stillwater Complex includes an extensive mineralized zone containing platinum group metals known as the J-M Reef The Stillwater Complex has been prospected for gold, copper, nickel and chromium.” Get a free copy of the Zacks research report on Stillwater Mining Company (SWC).

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