Investors Buy Large Volume of Put Options on Cameco (NYSE:CCJ)

Key Points

• Cameco Corporation experienced a significant increase in options trading with 28,210 put options purchased, marking a 942% rise compared to the average volume.
• Analysts have demonstrated confidence in Cameco, with multiple upgrades and a consensus target price of $89.55, indicating a generally positive outlook for the company.
• The company's recent earnings report showed a 46.7% year-over-year revenue growth, reporting $0.51 EPS, surpassing estimates significantly.

Cameco Corporation (NYSE:CCJ - Get Free Report) TSE: CCO was the target of some unusual options trading activity on Thursday. Stock investors purchased 28,210 put options on the stock. This represents an increase of approximately 942% compared to the average daily volume of 2,706 put options.

Hedge Funds Weigh In On Cameco

Several hedge funds have recently modified their holdings of CCJ. MetLife Investment Management LLC purchased a new position in shares of Cameco in the 1st quarter valued at about $2,131,000. Northwest & Ethical Investments L.P. raised its holdings in Cameco by 50.0% in the 1st quarter. Northwest & Ethical Investments L.P. now owns 42,487 shares of the basic materials company's stock valued at $1,750,000 after acquiring an additional 14,154 shares in the last quarter. Kayne Anderson Capital Advisors LP lifted its stake in shares of Cameco by 41.6% in the 1st quarter. Kayne Anderson Capital Advisors LP now owns 40,407 shares of the basic materials company's stock valued at $1,663,000 after purchasing an additional 11,879 shares during the period. Edmond DE Rothschild Holding S.A. grew its holdings in shares of Cameco by 74.7% in the 1st quarter. Edmond DE Rothschild Holding S.A. now owns 48,992 shares of the basic materials company's stock valued at $2,017,000 after acquiring an additional 20,947 shares in the last quarter. Finally, Nicholson Meyer Capital Management Inc. bought a new stake in shares of Cameco in the first quarter valued at approximately $350,000. Institutional investors and hedge funds own 70.21% of the company's stock.

Cameco Price Performance

CCJ traded up $3.69 during trading on Friday, reaching $86.30. The stock had a trading volume of 7,970,267 shares, compared to its average volume of 4,046,154. Cameco has a 1-year low of $35.00 and a 1-year high of $86.84. The company has a quick ratio of 2.00, a current ratio of 2.96 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $37.57 billion, a price-to-earnings ratio of 99.20 and a beta of 1.04. The stock has a 50 day moving average of $77.31 and a two-hundred day moving average of $61.42.

Cameco (NYSE:CCJ - Get Free Report) TSE: CCO last released its earnings results on Thursday, July 31st. The basic materials company reported $0.51 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.22. The firm had revenue of $467.72 million during the quarter, compared to analyst estimates of $819.79 million. Cameco had a net margin of 14.97% and a return on equity of 8.21%. The business's quarterly revenue was up 46.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.14 EPS. Cameco has set its FY 2025 guidance at EPS. As a group, equities analysts anticipate that Cameco will post 1.27 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on CCJ shares. Sanford C. Bernstein set a $70.00 price target on shares of Cameco and gave the company an "outperform" rating in a report on Tuesday, June 10th. TD Securities reiterated a "buy" rating on shares of Cameco in a research note on Tuesday, August 5th. National Bankshares reaffirmed an "outperform" rating on shares of Cameco in a research note on Friday, August 22nd. CLSA began coverage on Cameco in a research report on Tuesday, September 9th. They set an "outperform" rating and a $102.00 target price for the company. Finally, The Goldman Sachs Group increased their price target on Cameco from $65.00 to $78.00 and gave the company a "buy" rating in a report on Wednesday, June 11th. Two analysts have rated the stock with a Strong Buy rating and thirteen have assigned a Buy rating to the company's stock. According to data from MarketBeat.com, Cameco currently has an average rating of "Buy" and an average target price of $89.55.

About Cameco

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.