Cameco (NYSE:CCJ) Stock Sees Heavy Call Option Buying

Key Points

• Call-option activity surged: Investors bought 152,544 Cameco call options on Friday, about 496% above the average daily volume.
• Analyst sentiment is moderately positive: MarketBeat reports an average “Moderate Buy” rating and a $147.38 average price target, though recent analyst actions were mixed.
• Cameco shares rose 4.3% to $71.24 on Friday. The company also announced an annual dividend of C$0.24 per share, with a stated yield of 22.0%.

Cameco Corporation (NYSE:CCJ - Get Free Report) TSE: CCO saw unusually large options trading activity on Friday. Stock investors bought 152,544 call options on the company. This is an increase of approximately 496% compared to the average daily volume of 25,582 call options.

Analyst Ratings Changes

Several analysts have issued reports on the company. Zacks Research raised Cameco from a "strong sell" rating to a "hold" rating in a research report on Tuesday. Wall Street Zen lowered Cameco from a "hold" rating to a "sell" rating in a research report on Saturday, September 19th. Citigroup restated a "positive" rating on shares of Cameco in a research note on Wednesday, July 15th. Bank of America dropped their price objective on Cameco from $143.00 to $140.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Finally, Weiss Ratings upgraded Cameco from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. Eleven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $147.38.

Institutional Trading of Cameco

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Sterling Capital Management LLC acquired a new stake in Cameco during the first quarter worth $30,000. CX Institutional lifted its position in shares of Cameco by 2,181.2% during the third quarter. CX Institutional now owns 365 shares of the basic materials company's stock worth $32,000 after purchasing an additional 349 shares in the last quarter. Signature Equity Partners LLC grew its holdings in shares of Cameco by 55.8% in the third quarter. Signature Equity Partners LLC now owns 444 shares of the basic materials company's stock valued at $38,000 after purchasing an additional 159 shares in the last quarter. Western Wealth Management LLC acquired a new position in shares of Cameco in the first quarter valued at approximately $39,000. Finally, Trust Co. of Vermont acquired a new position in shares of Cameco in the second quarter worth $39,000. Hedge funds and other institutional investors own 70.21% of the company's stock.

Cameco Stock Up 4.3%

Shares of NYSE CCJ traded up $2.91 during trading hours on Friday, hitting $71.24. 3,039,186 shares of the stock were exchanged, compared to its average volume of 3,574,324. Cameco has a 12 month low of $66.06 and a 12 month high of $135.24. The firm has a fifty day moving average price of $87.96 and a 200-day moving average price of $103.37. The company has a quick ratio of 2.10, a current ratio of 2.55 and a debt-to-equity ratio of 0.14. The company has a market cap of $31.03 billion, a PE ratio of 108.23, a PEG ratio of 1.59 and a beta of 1.18.

Cameco Dividend Announcement

The firm also recently declared an annual dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be given a dividend of C$0.24 per share. The ex-dividend date of this dividend is Monday, November 30th. This represents a dividend yield of 22.0%. Cameco's dividend payout ratio is presently 24.24%.

About Cameco

Cameco Corporation is a Canadian uranium company that explores for, mines, processes and supplies uranium used to generate nuclear power. The company produces uranium concentrates, commonly known as yellowcake, which are sold to nuclear utilities and other customers for conversion into nuclear fuel.

Cameco's principal mining operations are located in northern Saskatchewan, including the McArthur River and Cigar Lake mines. It also operates the Key Lake uranium mill and has interests in uranium assets in Kazakhstan through the Inkai joint venture.

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