Centerra Gold Inc. (NYSE:CGAU) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately bullish: Five of eight brokerages rate Centerra Gold a buy and three recommend holding, with an average 1-year price target of $17.50.
• Centerra Gold reported quarterly EPS of $0.39, slightly above the $0.38 consensus estimate, while revenue of $442.71 million exceeded forecasts of $394.27 million.
• The company announced a quarterly dividend of $0.07 per share, equivalent to $0.28 annually and a 1.3% yield; institutional investors own 55.4% of the stock.

Shares of Centerra Gold Inc. (NYSE:CGAU - Get Free Report) have received an average recommendation of "Moderate Buy" from the eight brokerages that are covering the stock, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $17.50.

Several equities research analysts have issued reports on CGAU shares. Scotiabank reaffirmed an "outperform" rating on shares of Centerra Gold in a research note on Tuesday, August 4th. Weiss Ratings cut Centerra Gold from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, July 28th. Wall Street Zen downgraded Centerra Gold from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Centerra Gold in a research note on Thursday, July 30th.

Centerra Gold Stock Performance

NYSE CGAU opened at $21.23 on Friday. Centerra Gold has a 52-week low of $6.99 and a 52-week high of $22.30. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.49 and a current ratio of 2.42. The company has a market capitalization of $4.17 billion, a P/E ratio of 6.78, a P/E/G ratio of 0.81 and a beta of 0.80. The company has a fifty day moving average of $16.91 and a 200-day moving average of $17.74.

Centerra Gold (NYSE:CGAU - Get Free Report) last announced its earnings results on Tuesday, July 28th. The company reported $0.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.01. Centerra Gold had a net margin of 36.92% and a return on equity of 15.35%. The company had revenue of $442.71 million during the quarter, compared to analyst estimates of $394.27 million. As a group, equities research analysts predict that Centerra Gold will post 1.63 EPS for the current fiscal year.

Centerra Gold Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 19th will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.28 annualized dividend and a dividend yield of 1.3%. Centerra Gold's dividend payout ratio (DPR) is currently 6.71%.

Hedge Funds Weigh In On Centerra Gold

A number of large investors have recently added to or reduced their stakes in CGAU. Donald Smith & CO. Inc. purchased a new stake in Centerra Gold during the second quarter valued at about $245,004,000. Goldman Sachs Group Inc. increased its holdings in shares of Centerra Gold by 57.2% in the first quarter. Goldman Sachs Group Inc. now owns 13,344,727 shares of the company's stock worth $84,739,000 after buying an additional 4,853,494 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in shares of Centerra Gold by 0.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 8,314,250 shares of the company's stock worth $147,899,000 after buying an additional 39,315 shares during the period. Van ECK Associates Corp lifted its stake in shares of Centerra Gold by 15.3% in the 4th quarter. Van ECK Associates Corp now owns 6,536,157 shares of the company's stock valued at $93,929,000 after acquiring an additional 866,977 shares during the last quarter. Finally, Man Group plc lifted its stake in shares of Centerra Gold by 9.7% in the 2nd quarter. Man Group plc now owns 3,649,899 shares of the company's stock valued at $26,241,000 after acquiring an additional 323,860 shares during the last quarter. Hedge funds and other institutional investors own 55.40% of the company's stock.

About Centerra Gold

Centerra Gold Inc is a gold mining company incorporated in Canada and headquartered in Toronto. The company specializes in the exploration, development and operation of precious metals properties, with a focus on gold production. Centerra's portfolio includes the Mount Milligan mine in British Columbia, Canada, and the Otjikoto mine in Namibia. Both operations produce gold and copper concentrates and employ modern mining methods and processing facilities to optimize recovery rates and minimize environmental impact.

In addition to its producing assets, Centerra is advancing the development of its Greenstone Gold Project in Ontario, Canada, which, upon completion, is expected to become one of Canada's largest gold mines.

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