Centerra Gold (NYSE:CGAU) Trading Up 7.4% After Earnings Beat

Key Points

• Centerra Gold shares rose 7.4% after the company reported quarterly EPS of $0.39, beating estimates by $0.01, while revenue of $442.71 million exceeded expectations of $394.27 million.
• The company declared a quarterly dividend of $0.07 per share, equivalent to an annualized payout of $0.28 and a 1.6% yield.
• Analysts maintain a “Moderate Buy” consensus, with five Buy ratings and three Holds and an average price target of $17.50; institutional investors own 55.4% of the stock.

Centerra Gold Inc. (NYSE:CGAU - Get Free Report)'s stock price was up 7.4% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $17.13 and last traded at $17.2550. 1,170,394 shares were traded during trading, a decline of 37% from the average session volume of 1,853,333 shares. The stock had previously closed at $16.07.

The company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.38 by $0.01. The firm had revenue of $442.71 million for the quarter, compared to analyst estimates of $394.27 million. Centerra Gold had a return on equity of 14.90% and a net margin of 40.32%.

Centerra Gold Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 19th will be issued a $0.07 dividend. The ex-dividend date is Wednesday, August 19th. This represents a $0.28 annualized dividend and a yield of 1.6%. Centerra Gold's payout ratio is 6.77%.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Wall Street Zen downgraded Centerra Gold from a "buy" rating to a "hold" rating in a report on Saturday. Scotiabank restated an "outperform" rating on shares of Centerra Gold in a research note on Tuesday, July 7th. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $17.50.

Institutional Investors Weigh In On Centerra Gold

Large investors have recently modified their holdings of the business. Goldman Sachs Group Inc. raised 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 last quarter. Donald Smith & CO. Inc. raised its stake in Centerra Gold by 21.8% in the 4th quarter. Donald Smith & CO. Inc. now owns 14,158,116 shares of the company's stock worth $203,452,000 after acquiring an additional 2,535,492 shares during the last quarter. FIL Ltd purchased a new stake in Centerra Gold during the 4th quarter valued at about $35,991,000. Millennium Management LLC raised its position in Centerra Gold by 828.0% during the third quarter. Millennium Management LLC now owns 2,372,671 shares of the company's stock valued at $25,435,000 after acquiring an additional 2,116,991 shares in the last quarter. Finally, Verbena Value LP acquired a new position in shares of Centerra Gold during the 4th quarter worth approximately $23,153,000. Hedge funds and other institutional investors own 55.40% of the company's stock.

Centerra Gold Stock Up 6.4%

The business has a 50-day moving average price of $16.28 and a 200-day moving average price of $17.49. The stock has a market cap of $3.39 billion, a PE ratio of 5.57, a price-to-earnings-growth ratio of 0.62 and a beta of 0.81. The company has a current ratio of 2.41, a quick ratio of 1.60 and a debt-to-equity ratio of 0.06.

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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