Century Aluminum Target of Unusually Large Options Trading (NASDAQ:CENX)

Key Points

• Unusual options activity: investors bought 14,415 call options on CENX on Friday, a 679% increase versus the average volume of 1,850 calls.
• Significant insider selling: CEO Jesse E. Gary sold 150,000 shares (about $8.32 million) leaving him with a 51.27% smaller stake, and insiders have sold 401,626 shares worth $20.85 million over the past three months.
• Stock and analyst snapshot: CENX slid $4.15 to $61.46 on lighter-than-average volume (1.44M vs. 2.39M avg), while analysts hold a consensus "Moderate Buy" rating with a $79.33 target price.

Century Aluminum Company (NASDAQ:CENX - Get Free Report) was the target of some unusual options trading on Friday. Stock investors purchased 14,415 call options on the stock. This represents an increase of 679% compared to the average volume of 1,850 call options.

Century Aluminum Stock Performance

Shares of CENX traded down $4.15 during mid-day trading on Friday, hitting $61.46. The stock had a trading volume of 1,441,437 shares, compared to its average volume of 2,390,464. The company has a market cap of $6.08 billion, a PE ratio of 154.05 and a beta of 1.99. The company's fifty day simple moving average is $55.33 and its two-hundred day simple moving average is $42.35. The company has a quick ratio of 0.98, a current ratio of 1.97 and a debt-to-equity ratio of 0.52. Century Aluminum has a fifty-two week low of $14.77 and a fifty-two week high of $68.69.

Century Aluminum (NASDAQ:CENX - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.25. Century Aluminum had a return on equity of 5.57% and a net margin of 1.65%.The business had revenue of $633.70 million during the quarter, compared to analyst estimates of $661.63 million. During the same quarter in the previous year, the firm posted $0.49 EPS. The business's revenue for the quarter was up .4% compared to the same quarter last year. On average, equities analysts expect that Century Aluminum will post 2.76 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Jesse E. Gary sold 150,000 shares of the stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $55.47, for a total transaction of $8,320,500.00. Following the transaction, the chief executive officer directly owned 142,580 shares in the company, valued at approximately $7,908,912.60. This represents a 51.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Robert F. Hoffman sold 10,529 shares of the stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $56.51, for a total value of $594,993.79. Following the transaction, the chief accounting officer owned 56,643 shares in the company, valued at $3,200,895.93. This trade represents a 15.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 401,626 shares of company stock valued at $20,847,911 over the last three months. Insiders own 0.76% of the company's stock.

Institutional Trading of Century Aluminum

Several hedge funds have recently added to or reduced their stakes in the business. Private Trust Co. NA acquired a new position in shares of Century Aluminum during the 4th quarter valued at $28,000. Transamerica Financial Advisors LLC acquired a new position in shares of Century Aluminum in the 4th quarter worth $40,000. Advisory Services Network LLC acquired a new position in shares of Century Aluminum in the 3rd quarter worth $34,000. Smartleaf Asset Management LLC grew its holdings in shares of Century Aluminum by 48.3% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,185 shares of the industrial products company's stock worth $47,000 after acquiring an additional 386 shares during the last quarter. Finally, Hantz Financial Services Inc. grew its holdings in shares of Century Aluminum by 68.9% in the 4th quarter. Hantz Financial Services Inc. now owns 1,218 shares of the industrial products company's stock worth $48,000 after acquiring an additional 497 shares during the last quarter. Institutional investors own 61.59% of the company's stock.

Analyst Upgrades and Downgrades

CENX has been the topic of a number of research reports. BMO Capital Markets set a $75.00 target price on Century Aluminum and gave the company an "outperform" rating in a research note on Thursday, April 9th. Wells Fargo & Company increased their target price on Century Aluminum from $69.00 to $77.00 and gave the company an "overweight" rating in a research note on Wednesday. Weiss Ratings reiterated a "hold (c)" rating on shares of Century Aluminum in a research note on Wednesday, January 21st. B. Riley Financial increased their target price on Century Aluminum from $68.00 to $86.00 and gave the company a "buy" rating in a research note on Tuesday, April 7th. Finally, Wall Street Zen upgraded Century Aluminum from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $79.33.

About Century Aluminum

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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