Why Hycroft Mining Stock Crushed it Today
Key Points
A top shareholder just increased his holding.
Recently, an analysis concluded that the company's property had significantly more precious metals than previously estimated.
- 10 stocks we like better than Hycroft Mining ›
A mining industry billionaire is increasing his stake in gold and silver miner Hycroft Mining (NASDAQ: HYMC), and investors were there for it on Tuesday. With news of a new purchase of company stock by Eric Sprott, Hycroft's shares rocketed nearly 12% higher on the day.
The dig for stock market gold
After market hours Monday, a regulatory filing revealed that an entity associated with Sprott, a veteran and very successful investor in mining businesses, had purchased 150,000 shares of Hycroft's common stock, adding to his already considerable holdings. According to the document, Sprott now owns more than 36.9 million shares following the purchase.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
According to data compiled by Yahoo! Finance, Hycroft's shares outstanding are just over 83 million, giving Sprott a roughly 44% stake in the company.
Neither Sprott nor Hycroft has yet publicly commented on the latest buy. Nevertheless, it's a significant vote of confidence in the miner's business, indicating that the noted investor believes it has significant potential.
Preparing for a pop
This, despite the fact that Hycroft is still in the development and exploration stage, and in recent years has posted no revenue and deep net losses. However, the one mine it owns was the subject of a recent mineral resource estimate, which found the potential amount of precious metals to be 55% higher than the previous assumption. This might very well be a good, albeit long-term, investment by Sprott, and where he goes, mining industry investors often follow.
Should you buy stock in Hycroft Mining right now?
Before you buy stock in Hycroft Mining, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hycroft Mining wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,174,241!*
Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 24, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
