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

Key Points

• Centrus Energy's shares gapped down from a previous close of $217.37 to an opening price of $200.99 before trading at $189.27, reflecting significant market movement.
• Research analysts have mixed ratings on Centrus Energy, with a consensus rating of "Moderate Buy" and an average target price of $202.09.
• The company's recent earnings report showed a 16.56% net margin despite revenue dropping 18.3% from the previous year, with $1.59 EPS significantly exceeding the consensus estimate of $0.58.

Centrus Energy Corp. (NYSE:LEU - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $217.37, but opened at $200.99. Centrus Energy shares last traded at $189.27, with a volume of 1,121,064 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on LEU shares. William Blair reissued an "outperform" rating on shares of Centrus Energy in a research report on Wednesday, July 9th. JPMorgan Chase & Co. increased their price target on Centrus Energy from $150.00 to $164.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. B. Riley reiterated a "buy" rating and set a $221.00 price target (up previously from $134.00) on shares of Centrus Energy in a report on Monday, June 23rd. Northland Securities set a $275.00 price objective on shares of Centrus Energy in a research note on Thursday, August 7th. Finally, UBS Group upgraded shares of Centrus Energy to a "hold" rating and set a $215.00 price objective on the stock in a research note on Monday, July 21st. One analyst has rated the stock with a sell rating, six have assigned a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $202.09.

Centrus Energy Stock Performance

The company has a market capitalization of $3.03 billion, a P/E ratio of 40.27 and a beta of 1.35. The stock has a fifty day simple moving average of $198.30 and a 200-day simple moving average of $125.32. The company has a quick ratio of 2.46, a current ratio of 2.93 and a debt-to-equity ratio of 3.09.

Centrus Energy (NYSE:LEU - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $1.59 earnings per share (EPS) for the quarter, beating 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 in the previous year, the business earned $1.89 earnings per share. Centrus Energy's revenue for the quarter was down 18.3% on a year-over-year basis. Equities analysts forecast that Centrus Energy Corp. will post 2.63 EPS for the current year.

Insider Activity

In other Centrus Energy news, CFO Kevin J. Harrill sold 1,728 shares of the business's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $126.00, for a total transaction of $217,728.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 1.00% of the stock is owned by corporate insiders.

Institutional Trading of Centrus Energy

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. FORA Capital LLC bought a new stake in Centrus Energy during the 2nd quarter worth about $4,035,000. MML Investors Services LLC acquired a new position in shares of Centrus Energy in the 2nd quarter valued at approximately $938,000. Letson Investment Management Inc. acquired a new position in shares of Centrus Energy in the 2nd quarter valued at approximately $458,000. HRT Financial LP grew its position in shares of Centrus Energy by 142.4% in the 2nd quarter. HRT Financial LP now owns 95,247 shares of the company's stock valued at $17,447,000 after purchasing an additional 55,946 shares during the period. Finally, Engineers Gate Manager LP bought a new stake in Centrus Energy in the 2nd quarter valued at approximately $415,000. 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.