Cameco (NYSE:CCJ) Shares Down 1.9% - Should You Sell?

Key Points

• Shares fell 1.9% to about $118.28 on Monday with trading volume down ~17% versus the average session, after a prior close of $120.60.
• Wall Street is broadly bullish: 12 analysts rate Cameco a Buy and three Hold, with an average price target of $150.40 and several firms raising targets (CIBC to $202, GLJ to $171.20).
• Solid recent results but rich valuation: Q4 EPS beat at $0.36 (vs. $0.29 expected) and revenue of $874.6M, alongside low leverage (debt/equity 0.14) but a high P/E of 121.94.

Cameco Corporation (NYSE:CCJ - Get Free Report) TSE: CCO's share price fell 1.9% on Monday . The stock traded as low as $118.09 and last traded at $118.2830. 3,232,154 shares traded hands during trading, a decline of 17% from the average session volume of 3,892,387 shares. The stock had previously closed at $120.60.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on CCJ. Glj Research restated a "buy" rating and set a $171.20 target price (up from $100.00) on shares of Cameco in a report on Wednesday, February 18th. Sanford C. Bernstein restated an "outperform" rating and set a $147.00 target price on shares of Cameco in a report on Thursday, February 5th. Canadian Imperial Bank of Commerce boosted their target price on Cameco to $202.00 in a report on Monday, March 9th. Raymond James Financial reiterated an "outperform" rating on shares of Cameco in a report on Wednesday, January 14th. Finally, Weiss Ratings upgraded Cameco from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, February 23rd. Twelve investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $150.40.

Cameco Stock Down 1.9%

The company has a debt-to-equity ratio of 0.14, a current ratio of 2.47 and a quick ratio of 1.68. The business has a fifty day moving average of $114.95 and a 200 day moving average of $105.37. The stock has a market capitalization of $51.52 billion, a price-to-earnings ratio of 121.94, a PEG ratio of 2.05 and a beta of 1.04.

Cameco (NYSE:CCJ - Get Free Report) TSE: CCO last released its quarterly earnings results on Friday, February 13th. The basic materials company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.07. Cameco had a return on equity of 9.35% and a net margin of 17.00%.The company had revenue of $874.57 million for the quarter, compared to analysts' expectations of $782.13 million. During the same period in the prior year, the firm earned $0.36 earnings per share. The firm's revenue was up 1.5% compared to the same quarter last year. As a group, equities analysts predict that Cameco Corporation will post 1.3 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Center for Financial Planning Inc. lifted its stake in Cameco by 140.0% during the first quarter. Center for Financial Planning Inc. now owns 420 shares of the basic materials company's stock worth $46,000 after purchasing an additional 245 shares in the last quarter. NWF Advisory Services Inc. lifted its stake in Cameco by 3.6% during the first quarter. NWF Advisory Services Inc. now owns 13,633 shares of the basic materials company's stock worth $1,481,000 after purchasing an additional 477 shares in the last quarter. Triglav Investments D.O.O. acquired a new position in Cameco during the first quarter worth $418,000. Carnegie Investment Counsel acquired a new position in Cameco during the first quarter worth $316,000. Finally, General American Investors Co. Inc. lifted its stake in Cameco by 8.0% during the first quarter. General American Investors Co. Inc. now owns 339,230 shares of the basic materials company's stock worth $36,844,000 after purchasing an additional 25,000 shares in the last quarter. 70.21% of the stock is currently owned by institutional investors and hedge funds.

About Cameco

Cameco Corporation NYSE: CCJ is a leading producer of uranium and a supplier to the global nuclear power industry. Headquartered in Saskatoon, Saskatchewan, Canada, the company is engaged in the exploration, mining, milling and sale of uranium concentrate, commonly known as yellowcake, which is used as fuel for nuclear reactors. Cameco also participates in services and activities that support the front end of the nuclear fuel cycle, including processing and marketing of uranium to utilities under long‑term and spot contracts.

The company's operations have historically centered in Canada and the United States, where it operates and develops uranium mining and processing properties.

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