Centrus Energy (NYSE:LEU) Shares Up 15.4% - Should You Buy?

Key Points

• Centrus Energy Corp. shares surged by 15.4% during trading, closing at $457.16, following a substantial drop in average trading volume.
• Several analysts have raised their price targets for Centrus Energy, with B. Riley increasing their target to $221.00 and UBS Group giving a price target of $215.00, reflecting a consensus rating of Moderate Buy.
• The company reported a EPS of $1.59 for the last quarter, significantly exceeding analyst estimates, despite an 18.3% decline in quarterly revenue year-over-year.

Centrus Energy Corp. (NYSE:LEU - Get Free Report) was up 15.4% during trading on Wednesday . The company traded as high as $442.70 and last traded at $457.16. Approximately 381,039 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 1,111,537 shares. The stock had previously closed at $396.16.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on LEU shares. UBS Group raised Centrus Energy to a "hold" rating and set a $215.00 price target for the company in a research report on Monday, July 21st. William Blair restated an "outperform" rating on shares of Centrus Energy in a research note on Wednesday, July 9th. B. Riley restated a "buy" rating and issued a $221.00 price objective (up previously from $134.00) on shares of Centrus Energy in a research note on Monday, June 23rd. Evercore ISI upped their price objective on Centrus Energy from $251.00 to $252.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Finally, 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 objective for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Centrus Energy presently has a consensus rating of "Moderate Buy" and a consensus target price of $202.09.

Centrus Energy Price Performance

The firm has a 50 day moving average price of $254.24 and a two-hundred day moving average price of $176.01. 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 company has a market cap of $7.54 billion, a P/E ratio of 93.84 and a beta of 1.51.

Centrus Energy (NYSE:LEU - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $1.59 EPS for the quarter, topping the consensus estimate 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 prior year, the company posted $1.89 earnings per share. The company's quarterly revenue was down 18.3% compared to the same quarter last year. On average, analysts predict that Centrus Energy Corp. will post 2.63 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in LEU. Stone House Investment Management LLC purchased a new stake in shares of Centrus Energy in the 1st quarter valued at about $28,000. Nisa Investment Advisors LLC raised its holdings in shares of Centrus Energy by 157.7% in the 2nd quarter. Nisa Investment Advisors LLC now owns 183 shares of the company's stock valued at $34,000 after acquiring an additional 112 shares in the last quarter. USA Financial Formulas purchased a new stake in shares of Centrus Energy in the 2nd quarter valued at about $35,000. Harbour Investments Inc. raised its holdings in shares of Centrus Energy by 1,181.3% in the 2nd quarter. Harbour Investments Inc. now owns 205 shares of the company's stock valued at $38,000 after acquiring an additional 189 shares in the last quarter. Finally, Comerica Bank raised its holdings in shares of Centrus Energy by 589.5% in the 1st quarter. Comerica Bank now owns 655 shares of the company's stock valued at $41,000 after acquiring an additional 560 shares in the last quarter. Institutional investors own 49.96% of the company's stock.

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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