Champion Iron (TSE:CIA) Hits New 1-Year Low - Here's Why

Key Points

• Champion Iron shares fell to a new 52-week low of C$3.33 during Monday trading, below the 50-day and 200-day moving averages of C$3.82 and C$4.57, respectively.
• Despite the decline, analysts remain broadly positive, with a consensus “Buy” rating and an average price target of C$6.08. Recent targets range from C$5.00 to C$6.50, although some firms have reduced their estimates and BMO downgraded the stock to “Hold.”
• In its latest quarter, Champion Iron reported C$0.05 in earnings per share and C$414.50 million in revenue, with a 5.99% net margin and 6.81% return on equity.

Champion Iron Limited (TSE:CIA - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as C$3.33 and last traded at C$3.36, with a volume of 74751 shares trading hands. The stock had previously closed at C$3.37.

Wall Street Analysts Forecast Growth

Several research firms recently commented on CIA. TD boosted their target price on Champion Iron from C$5.00 to C$6.50 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. National Bank Financial decreased their price objective on shares of Champion Iron from C$5.75 to C$5.50 and set an "outperform" rating for the company in a research report on Tuesday, July 14th. Scotia lowered their price target on Champion Iron from C$5.50 to C$5.00 and set a "sector outperform" rating on the stock in a report on Friday, July 31st. BMO Capital Markets lowered Champion Iron from a "strong-buy" rating to a "hold" rating in a report on Monday, June 8th. Finally, Scotiabank dropped their price objective on shares of Champion Iron from C$6.00 to C$5.50 and set a "sector outperform" rating on the stock in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of C$6.08.

Champion Iron Stock Up 0.6%

The firm's 50-day moving average is C$3.82 and its 200 day moving average is C$4.57. The company has a debt-to-equity ratio of 87.81, a current ratio of 1.56 and a quick ratio of 2.01. The stock has a market cap of C$1.90 billion, a price-to-earnings ratio of 16.95, a price-to-earnings-growth ratio of -1.35 and a beta of 0.29.

Champion Iron (TSE:CIA - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported C$0.05 EPS for the quarter. Champion Iron had a return on equity of 6.81% and a net margin of 5.99%.The firm had revenue of C$414.50 million for the quarter. Sell-side analysts anticipate that Champion Iron Limited will post 0.5958254 earnings per share for the current fiscal year.

About Champion Iron

Champion is a high-purity iron ore producer with operations in Canada and Norway. Through Quebec Iron Ore Inc, Champion owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, approximately 13 kilometres north of Fermont, Québec. Bloom Lake is an open-pit operation with two concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce low contaminant high-purity iron ore concentrates with a proven ability to produce direct reduction grade quality iron ore concentrate.

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