Cameco (NYSE:CCJ) Hits New 12-Month Low on Disappointing Earnings

Key Points

• Cameco shares fell 10.2% to a new 52-week low of $73.89 after the uranium producer reported quarterly EPS of $0.10, well below the $0.23 consensus estimate. Revenue increased just 0.7% year over year.
• Analyst sentiment remains mixed: several firms downgraded the stock, but the consensus rating is still “Moderate Buy” with a target price of $147.93.
• Institutional investors own approximately 70.21% of Cameco, while the company maintains relatively low leverage, with a debt-to-equity ratio of 0.14.

Cameco Corporation (NYSE:CCJ - Get Free Report) TSE: CCO's stock price reached a new 52-week low during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $73.89 and last traded at $74.8180, with a volume of 1,224,262 shares. The stock had previously closed at $83.49.

The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.13). Cameco had a net margin of 10.20% and a return on equity of 7.59%. The firm's revenue was up .7% on a year-over-year basis. During the same period last year, the business earned $0.07 earnings per share.

Analyst Ratings Changes

Several research analysts have weighed in on CCJ shares. Bank of America lowered their price objective on shares of Cameco from $143.00 to $140.00 and set a "buy" rating on the stock in a report on Thursday, July 9th. Wall Street Zen lowered Cameco from a "hold" rating to a "sell" rating in a report on Saturday, September 19th. Zacks Research downgraded Cameco from a "hold" rating to a "strong sell" rating in a report on Monday, October 5th. Weiss Ratings upgraded shares of Cameco from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Finally, Jefferies Financial Group assumed coverage on shares of Cameco in a research report on Thursday, September 3rd. They issued a "buy" rating and a $138.00 price objective for the company. Twelve investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $147.93.

Institutional Investors Weigh In On Cameco

Hedge funds have recently modified their holdings of the stock. HB Wealth Management LLC grew its stake in shares of Cameco by 3.1% during the 1st quarter. HB Wealth Management LLC now owns 3,560 shares of the basic materials company's stock worth $387,000 after acquiring an additional 107 shares during the period. Integrated Wealth Concepts LLC lifted its holdings in Cameco by 0.8% during the second quarter. Integrated Wealth Concepts LLC now owns 15,123 shares of the basic materials company's stock valued at $1,540,000 after purchasing an additional 125 shares during the last quarter. QRG Capital Management Inc. boosted its position in Cameco by 4.1% during the first quarter. QRG Capital Management Inc. now owns 3,414 shares of the basic materials company's stock worth $371,000 after purchasing an additional 134 shares during the period. Novem Group boosted its position in Cameco by 5.1% during the third quarter. Novem Group now owns 2,854 shares of the basic materials company's stock worth $247,000 after purchasing an additional 138 shares during the period. Finally, Montag A & Associates Inc. increased its stake in shares of Cameco by 7.8% in the first quarter. Montag A & Associates Inc. now owns 1,940 shares of the basic materials company's stock worth $211,000 after purchasing an additional 140 shares in the last quarter. Institutional investors own 70.21% of the company's stock.

Cameco Trading Down 10.2%

The firm's 50-day moving average price is $91.00 and its 200-day moving average price is $104.35. The company has a quick ratio of 2.10, a current ratio of 3.06 and a debt-to-equity ratio of 0.14. The company has a market cap of $32.66 billion, a P/E ratio of 127.09, a price-to-earnings-growth ratio of 1.69 and a beta of 1.17.

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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