Cameco (NYSE:CCJ) Shares Down 2.5% - What's Next?

Key Points

• Cameco shares fell 2.5% on Monday to about $120.26 on above‑average volume (~5.36M shares), while Wall Street's consensus rating remains a "Buy" with a consensus target price of $121.68.
• The company reported a quarter with an earnings and revenue miss (EPS $0.05 vs. $0.22 expected; revenue $313.74M, down 14.7% YoY), yet it recently doubled its annual dividend to $0.24 per share.
• Cameco has a market capitalization of $52.37B, a high PE ratio (~139.8), strong liquidity (current ratio 2.99) and low leverage (debt/equity 0.15), with roughly 70% of shares held by institutions.

Cameco Corporation (NYSE:CCJ - Get Free Report) TSE: CCO's share price dropped 2.5% on Monday . The stock traded as low as $119.30 and last traded at $120.2590. Approximately 5,359,032 shares changed hands during trading, an increase of 11% from the average daily volume of 4,831,368 shares. The stock had previously closed at $123.39.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Royal Bank Of Canada reduced their price objective on Cameco from $160.00 to $150.00 and set an "outperform" rating on the stock in a research report on Thursday, November 13th. The Goldman Sachs Group raised their target price on Cameco from $95.00 to $109.00 and gave the stock a "buy" rating in a research note on Wednesday, October 29th. Zacks Research upgraded Cameco from a "hold" rating to a "strong-buy" rating in a report on Wednesday, January 14th. Wall Street Zen lowered shares of Cameco from a "buy" rating to a "hold" rating in a report on Saturday, November 8th. Finally, Scotiabank reaffirmed an "outperform" rating on shares of Cameco in a research note on Wednesday, October 29th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $121.68.

Cameco Stock Performance

The firm's fifty day moving average is $100.77 and its 200-day moving average is $89.34. The company has a current ratio of 2.99, a quick ratio of 1.85 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $52.37 billion, a PE ratio of 139.84 and a beta of 0.99.

Cameco (NYSE:CCJ - Get Free Report) TSE: CCO last announced its earnings results on Wednesday, November 5th. The basic materials company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.17). The company had revenue of $313.74 million for the quarter, compared to analysts' expectations of $531.72 million. Cameco had a return on equity of 8.58% and a net margin of 15.24%.The company's quarterly revenue was down 14.7% compared to the same quarter last year. During the same period last year, the business earned ($0.01) EPS. As a group, research analysts anticipate that Cameco Corporation will post 1.27 earnings per share for the current year.

Cameco Increases Dividend

The company also recently announced an annual dividend, which was paid on Tuesday, December 16th. Shareholders of record on Monday, December 1st were given a $0.24 dividend. The ex-dividend date of this dividend was Monday, December 1st. This is a positive change from Cameco's previous annual dividend of $0.12. This represents a yield of 27.0%. Cameco's dividend payout ratio is presently 19.77%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of CCJ. Financial Consulate Inc. acquired a new position in Cameco during the 3rd quarter worth about $25,000. Nisa Investment Advisors LLC acquired a new position in Cameco in the 4th quarter valued at about $25,000. Founders Capital Management purchased a new stake in Cameco during the fourth quarter worth about $27,000. Strategic Advocates LLC acquired a new stake in shares of Cameco during the third quarter worth about $28,000. Finally, Armstrong Advisory Group Inc. lifted its position in shares of Cameco by 110.3% during the third quarter. Armstrong Advisory Group Inc. now owns 347 shares of the basic materials company's stock worth $29,000 after purchasing an additional 182 shares in the last quarter. 70.21% of the stock is currently owned by hedge funds and other institutional investors.

Cameco Company Profile

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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