Is Sprott Stock a Buy After the Company Scooped Up 2.5 Million of Its Own Shares?
Key Points
Sprott bought 2,522,590 shares of its stock; estimated trade size of $337.45 million based on average prices in the quarter.
The transaction value represented a 9.82% increase relative to the fund's $3.44 billion 13F AUM.
The post-trade stake stands at 4,183,727 shares valued at $597.85 million.
The SII position now accounts for 17.39% of 13F AUM, making it the fund's largest holding.
- 10 stocks we like better than Sprott ›
What happened
According to a May 8, 2026 SEC filing, Sprott (NYSE:SII) disclosed a major buy of its own shares, adding 2,522,590 shares in an estimated $337.45 million transaction based on quarterly average pricing. The end-of-quarter position was valued at $597.85 million, with the net position change of $435.20 million reflecting both the increased share count and stock price movement during the reporting period.
What else to know
- Direction: buy; SII stake now represents 17.39% of Sprott's 13F assets under management.
- Top holdings by value after the filing:
- NYSE: SII: $597.85 million (17.4% of AUM)
- NASDAQ: FUND: $148.30 million (4.3% of AUM)
- NYSE: AEM: $139.02 million (4.0% of AUM)
- NYSEMKT: EQX: $137.32 million (4.0% of AUM)
- As of May 7, 2026, SII shares were priced at $142.36, up 168.6% over the past year and outperforming the S&P 500 by 138.3 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close May 7, 2026) | $142.36 |
| Market capitalization | $3.65 billion |
| Revenue (TTM) | $268.78 million |
| Net income (TTM) | $67.35 million |
Company snapshot
- Sprott offers asset management, portfolio management, wealth management, fund management, and related consulting services, generating revenue primarily from management and performance fees.
- It operates an asset management holding company model, earning income through subsidiaries that manage mutual funds, hedge funds, offshore funds, and managed accounts.
- The company serves institutional investors, high-net-worth individuals, and retail clients seeking specialized investment solutions in the financial services sector.
Sprott is a Toronto-based asset management company focused on delivering specialized investment solutions through a diverse suite of funds and managed accounts. The company leverages its expertise in alternative assets and active management to generate consistent fee-based income.
What this transaction means for investors
Global asset manager Sprott’s first quarter purchase of 2.5 million of its own shares suggests it sees upside in the stock despite rising well above its 52-week low of $52.45 reached in May of 2025. Indeed, shares soared to a high of $169.63 on March 10 thanks to strong business performance.
In its Q1 earnings report released on May 6, the company reported assets under management (“AUM”) of $65.1 billion, up 9% from $59.6 billion at the end of 2025. It also saw Q1 net income explode to $29.2 million, or $1.13 per share, from $12 million, or $0.46 per share, in the previous year.
Sprott’s investment focus on precious metals and critical materials, such as uranium, coupled with offerings that include physical bullion trusts, mining ETFs, and actively managed equity strategies, seems to be working well.
However, because its share price increased so much, its valuation is high. This can be seen in Sprott’s price-to-earnings ratio of 50, which is at an elevated level compared to the past year. This suggests now is a good time to sell shares, but not to buy.
Should you buy stock in Sprott right now?
Before you buy stock in Sprott, 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 Sprott 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 $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% 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 May 10, 2026.
Robert Izquierdo 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
