Centerra Gold (NYSE:CGAU) Sets New 52-Week High - Time to Buy?

Key Points

• Centerra Gold shares reached a new 52-week high of $22.98, significantly above the previous close of $21.28 and the average analyst price target of $17.50.
• Recent quarterly results exceeded expectations: Centerra reported EPS of $0.39 versus $0.38 expected and revenue of $442.71 million compared with the $394.27 million consensus estimate.
• Analyst sentiment remains positive but mixed, with five Buy ratings and three Holds producing a “Moderate Buy” consensus. The company also declared a quarterly dividend of $0.07 per share, representing a 1.2% yield.

Centerra Gold Inc. (NYSE:CGAU - Get Free Report) shares hit a new 52-week high on Wednesday . The stock traded as high as $22.98 and last traded at $22.8740, with a volume of 242017 shares. The stock had previously closed at $21.28.

Analyst Upgrades and Downgrades

CGAU has been the subject of several recent analyst reports. Weiss Ratings cut shares of Centerra Gold from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, July 28th. Wall Street Zen lowered shares of Centerra Gold from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Scotiabank restated an "outperform" rating on shares of Centerra Gold in a report on Tuesday, August 4th. Finally, Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of Centerra Gold in a report on Thursday, July 30th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $17.50.

Centerra Gold Price Performance

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 stock has a market cap of $4.49 billion, a PE ratio of 7.30, a price-to-earnings-growth ratio of 0.80 and a beta of 0.80. The company's fifty day moving average is $17.28 and its 200 day moving average is $17.79.

Centerra Gold (NYSE:CGAU - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.01. The company had revenue of $442.71 million for the quarter, compared to analysts' expectations of $394.27 million. Centerra Gold had a return on equity of 15.35% and a net margin of 36.92%. As a group, sell-side analysts anticipate that Centerra Gold Inc. will post 1.63 earnings per share 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. Stockholders of record on Wednesday, August 19th will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Wednesday, August 19th. Centerra Gold's dividend payout ratio is 6.71%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Global Retirement Partners LLC acquired a new position in Centerra Gold in the fourth quarter valued at approximately $36,000. Pinnacle Holdings LLC acquired a new stake in Centerra Gold in the 2nd quarter valued at approximately $45,000. Osaic Holdings Inc. raised its stake in shares of Centerra Gold by 63.0% during the second quarter. Osaic Holdings Inc. now owns 4,758 shares of the company's stock valued at $34,000 after purchasing an additional 1,839 shares in the last quarter. Leonteq Securities AG bought a new stake in shares of Centerra Gold during the 4th quarter worth about $72,000. Finally, C M Bidwell & Associates Ltd. bought a new stake in shares of Centerra Gold during the 2nd quarter worth about $83,000. Institutional investors and hedge funds 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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