Cameco (NYSE:CCJ) Shares Down 2.1% - Should You Sell?

Key Points

• Cameco shares fell 2.1% to about $83 midday, while analysts maintain a consensus rating of "Moderate Buy" with a consensus target price of $113.75 after several firms raised targets or upgraded ratings.
• The company missed Q3 expectations, reporting EPS of $0.05 vs. $0.22 expected and revenue of $313.7M versus $531.7M, with revenue down 14.7% year-over-year; analysts expect FY earnings of about $1.27 per share.
• Cameco doubled its annual dividend to $0.24 (previously $0.12), payable December 16 with record date December 1, and a reported payout ratio of roughly 19.8%.

Cameco Corporation (NYSE:CCJ - Get Free Report) TSE: CCO shares fell 2.1% during mid-day trading on Monday . The company traded as low as $81.88 and last traded at $82.9720. 3,878,013 shares changed hands during trading, a decline of 21% from the average session volume of 4,882,335 shares. The stock had previously closed at $84.76.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. President Capital raised shares of Cameco from a "neutral" rating to a "buy" rating in a research note on Monday, September 22nd. Raymond James Financial upped their target price on shares of Cameco to $150.00 in a research report on Wednesday, October 29th. BMO Capital Markets restated an "outperform" rating on shares of Cameco in a research report on Friday, August 29th. CLSA started coverage on Cameco in a report on Tuesday, September 9th. They issued an "outperform" rating and a $102.00 price objective for the company. Finally, Wall Street Zen lowered Cameco from a "buy" rating to a "hold" rating in a research report on Saturday, November 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, Cameco currently has a consensus rating of "Moderate Buy" and a consensus target price of $113.75.

Cameco Stock Performance

The business's 50 day simple moving average is $88.20 and its two-hundred day simple moving average is $75.49. The firm has a market capitalization of $36.13 billion, a PE ratio of 95.37 and a beta of 0.98. The company has a current ratio of 2.96, a quick ratio of 2.00 and a debt-to-equity ratio of 0.15.

Cameco (NYSE:CCJ - Get Free Report) TSE: CCO last posted its earnings results on Wednesday, November 5th. The basic materials company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.22 by ($0.17). The firm had revenue of $313.74 million during the quarter, compared to the consensus estimate of $531.72 million. Cameco had a net margin of 14.97% and a return on equity of 8.21%. The firm's revenue was down 14.7% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.01) EPS. Cameco has set its FY 2025 guidance at EPS. Research analysts expect that Cameco Corporation will post 1.27 earnings per share for the current fiscal year.

Cameco Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Tuesday, December 16th. Shareholders of record on Monday, December 1st will be given a $0.24 dividend. The ex-dividend date is Monday, December 1st. This is a boost from Cameco's previous annual dividend of $0.12. This represents a yield of 25.0%. Cameco's payout ratio is 19.77%.

Hedge Funds Weigh In On Cameco

Institutional investors have recently bought and sold shares of the stock. Kestra Private Wealth Services LLC grew its holdings in Cameco by 3.5% during the third quarter. Kestra Private Wealth Services LLC now owns 6,744 shares of the basic materials company's stock valued at $566,000 after purchasing an additional 225 shares during the period. NewEdge Advisors LLC lifted its position in shares of Cameco by 3.8% during the 3rd quarter. NewEdge Advisors LLC now owns 188,800 shares of the basic materials company's stock valued at $15,833,000 after buying an additional 6,976 shares in the last quarter. XTX Topco Ltd grew its stake in shares of Cameco by 161.2% during the 3rd quarter. XTX Topco Ltd now owns 8,075 shares of the basic materials company's stock valued at $677,000 after acquiring an additional 4,984 shares during the period. Zurich Insurance Group Ltd FI purchased a new stake in Cameco in the 3rd quarter worth approximately $11,758,000. Finally, United Capital Financial Advisors LLC increased its stake in shares of Cameco by 5.3% in the third quarter. United Capital Financial Advisors LLC now owns 4,527 shares of the basic materials company's stock worth $380,000 after purchasing an additional 227 shares in the last quarter. 70.21% of the stock is owned by institutional investors.

Cameco Company Profile

Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services.

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