Centerra Gold (NYSE:CGAU) Hits New 1-Year High - Still a Buy?

Key Points

• Centerra Gold shares hit a new 52-week high of $21.45, significantly above the $17.50 consensus price target. Analysts remain moderately bullish, with five Buy ratings and three Holds, although some ratings were recently downgraded.
• The company exceeded quarterly expectations, reporting $0.39 in EPS versus $0.38 expected and $442.71 million in revenue versus a $394.27 million consensus estimate.
• Centerra Gold declared a quarterly dividend of $0.07 per share, equivalent to a 1.3% annual yield, while institutional investors and hedge funds own 55.4% of the stock.

Centerra Gold Inc. (NYSE:CGAU - Get Free Report)'s share price reached a new 52-week high on Friday . The company traded as high as $21.45 and last traded at $21.1960, with a volume of 157315 shares trading hands. The stock had previously closed at $19.81.

Analysts Set New Price Targets

CGAU has been the topic of a number of recent analyst reports. Weiss Ratings downgraded Centerra Gold from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, July 28th. Wall Street Zen cut Centerra Gold from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Scotiabank reaffirmed an "outperform" rating on shares of Centerra Gold in a report on Tuesday. Finally, Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of Centerra Gold in a research note on Thursday, July 30th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.50.

Centerra Gold Stock Performance

The firm has a fifty day simple moving average of $16.48 and a 200-day simple moving average of $17.61. The company has a quick ratio of 1.49, a current ratio of 2.42 and a debt-to-equity ratio of 0.03. The company has a market cap of $4.13 billion, a PE ratio of 6.75, a price-to-earnings-growth ratio of 0.73 and a beta of 0.80.

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

Centerra Gold Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 19th will be given 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 yield of 1.3%. Centerra Gold's payout ratio is 6.71%.

Institutional Investors Weigh In On Centerra Gold

Large investors have recently modified their holdings of the company. Goldman Sachs Group Inc. increased its stake in Centerra Gold by 57.2% in the first quarter. Goldman Sachs Group Inc. now owns 13,344,727 shares of the company's stock valued at $84,739,000 after purchasing an additional 4,853,494 shares during the period. Donald Smith & CO. Inc. boosted its stake in shares of Centerra Gold by 21.8% during the fourth quarter. Donald Smith & CO. Inc. now owns 14,158,116 shares of the company's stock worth $203,452,000 after buying an additional 2,535,492 shares during the period. FIL Ltd acquired a new stake in shares of Centerra Gold during the fourth quarter worth about $35,991,000. Millennium Management LLC grew its holdings in shares of Centerra Gold by 828.0% during the third quarter. Millennium Management LLC now owns 2,372,671 shares of the company's stock worth $25,435,000 after buying an additional 2,116,991 shares during the last quarter. Finally, Verbena Value LP purchased a new position in shares of Centerra Gold during the fourth quarter worth about $23,153,000. 55.40% of the stock is owned by institutional investors and hedge funds.

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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