Centrus Energy (NYSE:LEU) Shares Down 5.8% - Should You Sell?

Key Points

• Centrus Energy's shares recently declined by 5.8%, trading as low as $178.14, with a notable decrease in mid-day trading volume by 14% compared to the average.
• Several analysts have adjusted their price targets, with Bank of America setting a new target of $285.00, while others have given ratings ranging from "sell" to "strong buy," resulting in an average price target of $202.09.
• Despite a quarterly earnings report reflecting a decrease in revenue, Centrus Energy's earnings per share (EPS) of $1.59 exceeded analysts' expectations, contributing to a return on equity of 84.09%.

Centrus Energy Corp. (NYSE:LEU - Get Free Report)'s share price was down 5.8% during trading on Friday . The company traded as low as $178.31 and last traded at $178.14. Approximately 890,383 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 1,033,639 shares. The stock had previously closed at $189.08.

Analyst Upgrades and Downgrades

LEU has been the topic of a number of analyst reports. Northland Capmk raised Centrus Energy to a "strong-buy" rating in a research note on Monday, July 7th. Stifel Nicolaus initiated coverage on Centrus Energy in a research note on Friday, July 11th. They issued a "buy" rating and a $220.00 price target on the stock. JPMorgan Chase & Co. lifted their price target on Centrus Energy from $150.00 to $164.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Bank of America reaffirmed a "neutral" rating and set a $285.00 target price (up previously from $210.00) on shares of Centrus Energy in a research note on Thursday, August 7th. Finally, William Blair reiterated an "outperform" rating on shares of Centrus Energy in a report on Wednesday, July 9th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Centrus Energy has an average rating of "Moderate Buy" and an average price target of $202.09.

Centrus Energy Price Performance

The company has a market capitalization of $3.12 billion, a price-to-earnings ratio of 41.57 and a beta of 1.35. The company has a debt-to-equity ratio of 3.09, a quick ratio of 2.46 and a current ratio of 2.93. The business has a 50 day moving average price of $197.49 and a 200-day moving average price of $124.02.

Centrus Energy (NYSE:LEU - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $1.59 EPS for the quarter, topping analysts' consensus estimates of $0.58 by $1.01. Centrus Energy had a return on equity of 84.09% and a net margin of 16.56%. During the same period last year, the company earned $1.89 earnings per share. The firm's quarterly revenue was down 18.3% compared to the same quarter last year. Research analysts predict that Centrus Energy Corp. will post 2.63 EPS for the current fiscal year.

Insider Transactions at Centrus Energy

In other Centrus Energy news, CFO Kevin J. Harrill sold 1,728 shares of the company's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $126.00, for a total transaction of $217,728.00. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Corporate insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On Centrus Energy

Hedge funds and other institutional investors have recently modified their holdings of the company. Stone House Investment Management LLC bought a new position in Centrus Energy in the 1st quarter worth $28,000. State of Wyoming bought a new stake in Centrus Energy during the fourth quarter valued at about $33,000. Nisa Investment Advisors LLC raised its holdings in Centrus Energy by 157.7% during the second quarter. Nisa Investment Advisors LLC now owns 183 shares of the company's stock valued at $34,000 after acquiring an additional 112 shares during the period. USA Financial Formulas bought a new stake in Centrus Energy during the second quarter valued at about $35,000. Finally, Harbour Investments Inc. raised its holdings in Centrus Energy by 1,181.3% during the second quarter. Harbour Investments Inc. now owns 205 shares of the company's stock valued at $38,000 after acquiring an additional 189 shares during the period. 49.96% of the stock is owned by institutional investors.

About Centrus Energy

Centrus Energy Corp. supplies nuclear fuel components and services for the nuclear power industry in the United States, Belgium, Japan, and internationally. The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) components of LEU; natural uranium hexafluoride, uranium concentrates, and uranium conversion; and enriched uranium products to utilities that operate nuclear power plants.

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