Centerra Gold (NYSE:CGAU) Hits New 52-Week High - Still a Buy?

Key Points

• Centerra Gold hit a new 52-week high of $18.37 (last at $18.21) with shares up about 11.7% and elevated trading volume.
• Analyst views are mixed: the consensus rating is a Moderate Buy with a $14.17 consensus price target, even as several firms recently upgraded the stock (e.g., Wall Street Zen to Strong-Buy, BMO to Outperform).
• The company showed solid fundamentals—a quarterly earnings beat (EPS $0.33 vs. $0.22 est.), strong liquidity (current ratio 2.89, debt/equity 0.02), a PE of 11, and a 1.6% dividend yield.

Centerra Gold Inc. (NYSE:CGAU - Get Free Report)'s stock price hit a new 52-week high during trading on Tuesday . The company traded as high as $18.37 and last traded at $18.2120, with a volume of 573809 shares trading hands. The stock had previously closed at $16.13.

Analyst Ratings Changes

A number of research firms recently commented on CGAU. Wall Street Zen raised Centerra Gold from a "buy" rating to a "strong-buy" rating in a research note on Saturday, November 1st. Raymond James Financial reaffirmed a "market perform" rating on shares of Centerra Gold in a research note on Thursday, October 30th. BMO Capital Markets upgraded shares of Centerra Gold from a "market perform" rating to an "outperform" rating in a report on Tuesday. Scotiabank reissued an "outperform" rating on shares of Centerra Gold in a research note on Thursday, October 23rd. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Centerra Gold in a research report on Monday, December 29th. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.17.

Centerra Gold Trading Up 11.7%

The company has a quick ratio of 2.10, a current ratio of 2.89 and a debt-to-equity ratio of 0.02. The business's fifty day moving average is $13.92 and its 200-day moving average is $10.80. The stock has a market capitalization of $3.60 billion, a PE ratio of 11.00, a P/E/G ratio of 0.40 and a beta of 0.87.

Centerra Gold (NYSE:CGAU - Get Free Report) last posted its quarterly earnings results on Tuesday, October 28th. The company reported $0.33 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.11. Centerra Gold had a net margin of 26.35% and a return on equity of 10.47%. The company had revenue of $395.20 million for the quarter, compared to the consensus estimate of $314.74 million. As a group, analysts anticipate that Centerra Gold Inc. will post 0.59 EPS for the current fiscal year.

Centerra Gold Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Thursday, November 13th were issued a dividend of $0.07 per share. The ex-dividend date was Thursday, November 13th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.6%. Centerra Gold's payout ratio is presently 12.20%.

Institutional Investors Weigh In On Centerra Gold

Institutional investors have recently bought and sold shares of the business. Baron Wealth Management LLC grew its stake in shares of Centerra Gold by 10.8% in the fourth quarter. Baron Wealth Management LLC now owns 25,981 shares of the company's stock valued at $373,000 after buying an additional 2,542 shares in the last quarter. Burkett Financial Services LLC grew its position in shares of Centerra Gold by 27.5% in the 4th quarter. Burkett Financial Services LLC now owns 3,569 shares of the company's stock worth $51,000 after acquiring an additional 769 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Centerra Gold by 146.2% during the third quarter. JPMorgan Chase & Co. now owns 1,367,172 shares of the company's stock valued at $14,670,000 after purchasing an additional 811,803 shares during the last quarter. Polar Asset Management Partners Inc. bought a new position in Centerra Gold in the third quarter worth about $2,036,000. Finally, Voleon Capital Management LP bought a new stake in shares of Centerra Gold in the 3rd quarter worth approximately $122,000. 55.40% of the stock is currently owned by hedge funds and other institutional investors.

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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