Century Aluminum (NASDAQ:CENX) Shares Gap Up - Here's Why

Key Points

• Century Aluminum shares surged at the open, rising from a prior close of $51.88 to $54.18 before trading around $53.04.
• Analyst opinions are mixed, but the stock carries a consensus “Moderate Buy” rating and an average price target of $72.00; UBS initiated coverage with a $60 target and Buy rating.
• Century Aluminum beat quarterly EPS expectations, reporting $2.46 versus $2.33 forecast, while revenue increased 59% year over year to $752.1 million, below the $817.15 million estimate.

Century Aluminum Company (NASDAQ:CENX - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $51.88, but opened at $54.18. Century Aluminum shares last traded at $53.0370, with a volume of 208,499 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on CENX shares. UBS Group assumed coverage on Century Aluminum in a research report on Monday. They set a "buy" rating and a $60.00 price target on the stock. B. Riley Financial dropped their price target on Century Aluminum from $86.00 to $74.00 and set a "buy" rating for the company in a research report on Tuesday, July 7th. Zacks Research lowered shares of Century Aluminum from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 8th. Weiss Ratings downgraded shares of Century Aluminum from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, July 21st. Finally, Wells Fargo & Company increased their target price on Century Aluminum from $77.00 to $79.00 and gave the company an "overweight" rating in a research note on Friday, May 8th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $72.00.

Century Aluminum Price Performance

The company has a current ratio of 2.75, a quick ratio of 1.61 and a debt-to-equity ratio of 0.31. The business has a fifty day simple moving average of $49.43 and a two-hundred day simple moving average of $53.96. The stock has a market cap of $5.22 billion, a PE ratio of 9.13 and a beta of 1.96.

Century Aluminum (NASDAQ:CENX - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The industrial products company reported $2.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.33 by $0.13. The company had revenue of $752.10 million during the quarter, compared to analysts' expectations of $817.15 million. Century Aluminum had a net margin of 22.63% and a return on equity of 33.83%. Century Aluminum's revenue for the quarter was up 59.0% on a year-over-year basis. Research analysts forecast that Century Aluminum Company will post 8.34 earnings per share for the current year.

Hedge Funds Weigh In On Century Aluminum

Several hedge funds and other institutional investors have recently modified their holdings of CENX. BlackRock Inc. purchased a new stake in Century Aluminum during the second quarter valued at approximately $474,129,000. Vanguard Group Inc. increased its stake in shares of Century Aluminum by 18.7% in the fourth quarter. Vanguard Group Inc. now owns 6,939,794 shares of the industrial products company's stock worth $271,901,000 after purchasing an additional 1,094,257 shares in the last quarter. State Street Corp lifted its position in shares of Century Aluminum by 1.8% in the fourth quarter. State Street Corp now owns 4,295,711 shares of the industrial products company's stock valued at $168,306,000 after acquiring an additional 77,895 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in shares of Century Aluminum by 109.7% in the first quarter. Assenagon Asset Management S.A. now owns 1,830,324 shares of the industrial products company's stock worth $107,422,000 after buying an additional 957,571 shares in the last quarter. Finally, Morgan Stanley increased its holdings in shares of Century Aluminum by 12.3% in the fourth quarter. Morgan Stanley now owns 1,609,093 shares of the industrial products company's stock worth $63,044,000 after purchasing an additional 176,730 shares during the last quarter. 61.59% of the stock is owned by institutional investors.

Century Aluminum Company Profile

Century Aluminum Company is a primary aluminum producer that develops and operates smelters designed to supply low-carbon, high-purity aluminum products to a range of industrial and commercial markets. Established in 1995, the company has grown to become a significant North American aluminum producer with an expanding international footprint. Century Aluminum is headquartered in the United States and is focused on energy-efficient operations and cost management.

The company's core operations include three primary aluminum smelting facilities located in Hawesville, Kentucky; Mount Holly, South Carolina; and Grundartangi, Iceland.

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