Wells Fargo & Company Issues Pessimistic Forecast for Century Aluminum (NASDAQ:CENX) Stock Price

Key Points

• Wells Fargo cut its Century Aluminum price target from $79 to $71 but maintained an “overweight” rating; the new target implies 120.7% upside from the stock’s then-current price.
• Analyst sentiment remained broadly positive: MarketBeat cited a “Moderate Buy” consensus and a $61 average target, although several firms recently lowered their price targets.
• Third-quarter revenue increased 52% year over year to $961.2 million, but adjusted EPS of $2.58 missed the $2.67 consensus estimate, with power and operating costs weighing on earnings.

Century Aluminum (NASDAQ:CENX - Get Free Report) had its price target decreased by research analysts at Wells Fargo & Company from $79.00 to $71.00 in a research report issued on Friday, Benzinga reports. The firm currently has an "overweight" rating on the industrial products company's stock. Wells Fargo & Company's target price points to a potential upside of 120.70% from the stock's current price.

Several other brokerages also recently commented on CENX. Wall Street Zen downgraded Century Aluminum from a "strong-buy" rating to a "buy" rating in a research note on Sunday, September 20th. UBS Group decreased their target price on Century Aluminum from $60.00 to $55.00 and set a "buy" rating for the company in a research note on Thursday, October 8th. Zacks Research raised Century Aluminum from a "strong sell" rating to a "hold" rating in a research note on Monday, October 19th. B. Riley Financial lowered their price target on Century Aluminum from $72.00 to $64.00 and set a "buy" rating for the company in a report on Tuesday. Finally, Barclays began coverage on Century Aluminum in a research report on Wednesday, October 14th. They set an "equal weight" rating and a $40.00 price target on the stock. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $61.00.

Century Aluminum Trading Up 7.0%

NASDAQ:CENX traded up $2.10 during trading hours on Friday, hitting $32.17. The stock had a trading volume of 584,604 shares, compared to its average volume of 2,111,338. The business's 50 day moving average is $38.12 and its 200-day moving average is $49.48. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.61 and a current ratio of 2.75. The company has a market cap of $3.18 billion, a price-to-earnings ratio of 5.59 and a beta of 2.17. Century Aluminum has a one year low of $25.40 and a one year high of $70.43.

Century Aluminum (NASDAQ:CENX - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The industrial products company reported $2.58 earnings per share for the quarter, missing analysts' consensus estimates of $2.67 by ($0.09). Century Aluminum had a return on equity of 33.83% and a net margin of 22.63%. The firm had revenue of $961.20 million for the quarter, compared to the consensus estimate of $945.02 million. During the same period in the prior year, the business earned $0.56 earnings per share. The company's revenue for the quarter was up 52.0% compared to the same quarter last year. Sell-side analysts anticipate that Century Aluminum will post 7.64 EPS for the current fiscal year.

Institutional Trading of Century Aluminum

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Hollencrest Capital Management acquired a new position in Century Aluminum during the first quarter valued at approximately $29,000. Summit Securities Group LLC acquired a new position in shares of Century Aluminum during the 1st quarter worth approximately $42,000. Strs Ohio acquired a new position in shares of Century Aluminum during the 1st quarter worth approximately $47,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Century Aluminum during the 2nd quarter worth approximately $37,000. Finally, Meeder Asset Management Inc. acquired a new stake in shares of Century Aluminum in the 2nd quarter valued at approximately $63,000. 61.59% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Century Aluminum

Here are the key news stories impacting Century Aluminum this week:

• Positive Sentiment: Revenue rose 52% year over year to $961.2 million, topping analyst expectations, while aluminum shipments increased 33% sequentially to 173,483 tonnes. Net income attributable to Century was $302.6 million, or $2.89 per diluted share. Century Aluminum Q3 results
• Positive Sentiment: Higher shipments and nearly $1 billion in quarterly sales were highlighted as notable takeaways for long-term investors, indicating stronger volume and revenue momentum. Three takeaways for long-term investors
• Negative Sentiment: Adjusted EPS was $2.58, below the $2.67 estimate cited in company coverage, despite the stronger reported GAAP EPS of $2.89. The adjusted earnings miss may have disappointed investors focused on underlying performance. Q3 results and cost pressures
• Negative Sentiment: Coverage attributed the adjusted earnings pressure to power and operating costs, which could limit how much of the sales and shipment growth flows through to profit. Adjusted EPS report

About Century Aluminum

Century Aluminum Company is a producer of primary aluminum. The company operates aluminum smelters that convert alumina into aluminum metal, supplying standard-grade and value-added products used in transportation, construction, packaging, aerospace, and other industrial applications.

Century Aluminum's operations are located in the United States and Iceland. Its U.S. facilities include the Sebree smelter in Kentucky and the Mt. Holly smelter in South Carolina, while its Icelandic operations are based at the Grundartangi aluminum smelter.

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