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

Key Points

• Moderate Buy consensus from nine analysts (six buy, three hold) with an average 12‑month price target of $16.67 versus the current share price near $16.80.
• Centerra beat estimates last quarter, reporting $0.44 EPS versus a $0.41 consensus and revenue of $484.7M (vs. $373.5M est.), with a strong net margin of 40.3% and ROE of 14.9%.
• The company declared a quarterly $0.07 dividend (annualized $0.28, ~1.7% yield) with a low payout ratio of 6.77%; market cap is about $3.35B and the stock trades at a P/E of 5.42.

Shares of Centerra Gold Inc. (NYSE:CGAU - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the nine research firms that are currently covering the stock, Marketbeat reports. Three analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $16.6667.

A number of research analysts have issued reports on CGAU shares. Wall Street Zen lowered shares of Centerra Gold from a "strong-buy" rating to a "buy" rating in a research note on Saturday, April 25th. Weiss Ratings reissued a "buy (b)" rating on shares of Centerra Gold in a report on Friday, March 27th. Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Centerra Gold in a research report on Wednesday, February 4th. BMO Capital Markets upgraded Centerra Gold from a "hold" rating to an "outperform" rating in a research note on Tuesday, January 20th. Finally, Zacks Research cut Centerra Gold from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th.

Centerra Gold Price Performance

Shares of CGAU stock opened at $16.80 on Wednesday. Centerra Gold has a fifty-two week low of $6.35 and a fifty-two week high of $21.17. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.60 and a current ratio of 2.41. The firm has a market capitalization of $3.35 billion, a price-to-earnings ratio of 5.42, a PEG ratio of 0.81 and a beta of 0.80. The stock's 50-day simple moving average is $18.45 and its 200-day simple moving average is $15.95.

Centerra Gold (NYSE:CGAU - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. The firm had revenue of $484.70 million during the quarter, compared to analyst estimates of $373.47 million. Centerra Gold had a net margin of 40.32% and a return on equity of 14.90%. As a group, equities analysts forecast that Centerra Gold will post 1.75 earnings per share for the current fiscal year.

Centerra Gold Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Thursday, May 21st will be paid a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Thursday, May 21st. Centerra Gold's dividend payout ratio (DPR) is presently 6.77%.

Institutional Investors Weigh In On Centerra Gold

A number of large investors have recently bought and sold shares of the company. Burkett Financial Services LLC purchased a new position in Centerra Gold during the 3rd quarter worth approximately $30,000. TD Waterhouse Canada Inc. boosted its holdings in shares of Centerra Gold by 1,106.5% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 2,980 shares of the company's stock valued at $33,000 after acquiring an additional 2,733 shares during the last quarter. Osaic Holdings Inc. boosted its holdings in shares of Centerra Gold by 63.0% in the 2nd quarter. Osaic Holdings Inc. now owns 4,758 shares of the company's stock valued at $34,000 after acquiring an additional 1,839 shares during the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Centerra Gold in the fourth quarter worth $36,000. Finally, Leonteq Securities AG purchased a new position in shares of Centerra Gold during the fourth quarter worth $72,000. Hedge funds and other institutional investors own 55.40% of the company's stock.

Centerra Gold Company Profile

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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