Centrus Energy (NYSE:LEU) Shares Climb 7.4% - Should You Buy?

Key Points

• Centrus Energy shares rose 7.4% to about $151.89, although trading volume was 78% below the average daily level.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $235.71; individual targets range from $180 to $270.
• The company reported strong quarterly results, including EPS of $1.77 versus a $0.74 estimate and 14% year-over-year revenue growth to $176.1 million. Institutional investors own nearly 50% of the stock.

Centrus Energy Corp. (NYSE:LEU - Get Free Report) rose 7.4% on Tuesday. The company traded as high as $152.88 and last traded at $151.8850. 196,247 shares traded hands during trading, a decline of 78% from the average daily volume of 897,180 shares. The stock had previously closed at $141.44.

Wall Street Analyst Weigh In

LEU has been the subject of a number of recent analyst reports. Barclays initiated coverage on shares of Centrus Energy in a research report on Tuesday, August 18th. They issued an "equal weight" rating and a $207.00 target price for the company. Northland Securities set a $270.00 price target on shares of Centrus Energy in a research note on Friday, September 11th. JPMorgan Chase & Co. increased their price objective on shares of Centrus Energy from $178.00 to $180.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Roth Capital reiterated a "neutral" rating and set a $188.00 price objective on shares of Centrus Energy in a research note on Thursday, August 6th. Finally, Zacks Research raised Centrus Energy from a "hold" rating to a "strong-buy" rating in a report on Monday, September 28th. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $235.71.

Centrus Energy Trading Up 11.3%

The firm has a market capitalization of $3.14 billion, a P/E ratio of 71.61, a price-to-earnings-growth ratio of 11.06 and a beta of 1.53. The company has a debt-to-equity ratio of 1.39, a quick ratio of 4.52 and a current ratio of 5.39. The firm has a 50 day moving average price of $168.66 and a two-hundred day moving average price of $177.45.

Centrus Energy (NYSE:LEU - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $1.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.74 by $1.03. Centrus Energy had a return on equity of 7.06% and a net margin of 10.23%.The business had revenue of $176.10 million for the quarter. During the same quarter in the previous year, the firm earned $1.59 earnings per share. The business's revenue was up 14.0% compared to the same quarter last year. On average, equities research analysts expect that Centrus Energy Corp. will post 4.21 EPS for the current fiscal year.

Institutional Trading of Centrus Energy

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Van ECK Associates Corp increased its position in shares of Centrus Energy by 14.7% in the fourth quarter. Van ECK Associates Corp now owns 895,867 shares of the company's stock worth $217,481,000 after acquiring an additional 114,881 shares in the last quarter. Bank of New York Mellon Corp lifted its position in shares of Centrus Energy by 43.3% in the 4th quarter. Bank of New York Mellon Corp now owns 473,145 shares of the company's stock valued at $114,861,000 after acquiring an additional 143,069 shares in the last quarter. Goehring & Rozencwajg Associates LLC boosted its stake in Centrus Energy by 18.1% in the 1st quarter. Goehring & Rozencwajg Associates LLC now owns 202,058 shares of the company's stock worth $35,075,000 after purchasing an additional 30,944 shares during the period. Renaissance Technologies LLC boosted its stake in Centrus Energy by 217.4% in the 1st quarter. Renaissance Technologies LLC now owns 160,542 shares of the company's stock worth $27,868,000 after purchasing an additional 109,960 shares during the period. Finally, Granahan Investment Management LLC grew its position in Centrus Energy by 19.2% during the 1st quarter. Granahan Investment Management LLC now owns 89,690 shares of the company's stock worth $15,569,000 after purchasing an additional 14,455 shares in the last quarter. Institutional investors and hedge funds own 49.96% of the company's stock.

About Centrus Energy

Centrus Energy Corp. is a U.S.-based nuclear fuel company that supplies enriched uranium and related services to commercial nuclear power producers and other customers. Its business includes the sale of low-enriched uranium (LEU), which is used to manufacture fuel for nuclear reactors, as well as uranium enrichment and fuel-management services.

The company is also developing high-assay low-enriched uranium (HALEU), an advanced nuclear fuel intended for certain next-generation reactors.

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