Centrus Energy (NYSE:LEU) Shares Up 7.5% - Should You Buy?

Key Points

• Centrus Energy shares jumped 7.5% to about $105.84, although trading volume was 78% below the stock’s average daily volume.
• Analyst sentiment is mixed but generally positive: the stock has a “Moderate Buy” consensus rating and an average price target of $199.41, with targets ranging from $120 to $300.
• The company recently exceeded earnings expectations, reporting quarterly EPS of $1.77 versus the $0.74 consensus estimate, while revenue rose 14% year over year to $176.1 million. Institutional investors own nearly 50% of the shares.

Shares of Centrus Energy Corp. (NYSE:LEU - Get Free Report) rose 7.5% during trading on Tuesday. The stock traded as high as $106.60 and last traded at $105.8380. 200,720 shares were traded during trading, a decline of 78% from the average daily volume of 904,985 shares. The stock had previously closed at $98.44.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on LEU. HC Wainwright restated a "buy" rating and set a $300.00 price objective on shares of Centrus Energy in a report on Wednesday, October 21st. Capital One Financial set a $151.00 price target on Centrus Energy in a research report on Tuesday. JPMorgan Chase & Co. lowered their target price on shares of Centrus Energy from $180.00 to $120.00 and set a "neutral" rating on the stock in a research note on Monday. Guggenheim initiated coverage on shares of Centrus Energy in a report on Thursday, October 8th. They issued a "buy" rating and a $167.00 price target for the company. Finally, TD Cowen initiated coverage on Centrus Energy in a research report on Monday. They set a "hold" rating and a $120.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Centrus Energy currently has an average rating of "Moderate Buy" and an average price target of $199.41.

Centrus Energy Stock Performance

The company has a market capitalization of $2.17 billion, a price-to-earnings ratio of 49.27, a price-to-earnings-growth ratio of 8.14 and a beta of 1.53. The stock's fifty day simple moving average is $152.88 and its 200-day simple moving average is $191.50. The company has a current ratio of 5.39, a quick ratio of 4.52 and a debt-to-equity ratio of 1.39.

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

Hedge Funds Weigh In On Centrus Energy

A number of institutional investors have recently made changes to their positions in LEU. Renaissance Technologies LLC grew its stake in Centrus Energy by 217.4% during the first quarter. Renaissance Technologies LLC now owns 160,542 shares of the company's stock worth $27,868,000 after buying an additional 109,960 shares during the period. Goehring & Rozencwajg Associates LLC lifted its position in shares of Centrus Energy by 18.1% during the 1st quarter. Goehring & Rozencwajg Associates LLC now owns 202,058 shares of the company's stock valued at $35,075,000 after acquiring an additional 30,944 shares during the last quarter. Atlas Wealth LLC purchased a new position in shares of Centrus Energy in the first quarter worth approximately $4,376,000. Arlington Capital Management Inc. purchased a new position in Centrus Energy during the 1st quarter valued at about $3,115,000. Finally, Granahan Investment Management LLC increased its stake in Centrus Energy by 19.2% during the first quarter. Granahan Investment Management LLC now owns 89,690 shares of the company's stock valued at $15,569,000 after acquiring an additional 14,455 shares during the period. 49.96% of the stock is owned by institutional investors and hedge funds.

About Centrus Energy

Centrus Energy Corp. NYSE: LEU is a U.S.-based supplier of nuclear fuel and related services. The company provides enriched uranium products, including low-enriched uranium used to fuel commercial nuclear reactors, as well as uranium and fuel-management services for utilities and other customers in the nuclear energy industry.

Centrus is also developing high-assay low-enriched uranium (HALEU), an advanced fuel intended for certain next-generation and small modular reactors. Its American Centrifuge technology is being developed to support domestic uranium enrichment and reduce reliance on foreign fuel-supply chains.

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