Century Aluminum (NASDAQ:CENX) Shares Up 6.1% - Should You Buy?

Key Points

• Century Aluminum shares rose 6.1% to about $36.30 in Friday trading, though volume was 89% below the average daily level.
• Analyst sentiment is mixed: four analysts rate the stock a Buy, two a Hold and one a Sell. The consensus rating is Hold, with an average price target of $64.60, despite recent target-price cuts from UBS and Wells Fargo.
• The company beat quarterly earnings expectations with adjusted EPS of $2.46 versus $2.33 expected, while revenue reached $752.1 million and increased 59% year over year. Institutional investors own 61.59% of the shares.

Century Aluminum Company (NASDAQ:CENX - Get Free Report)'s share price traded up 6.1% during mid-day trading on Friday. The stock traded as high as $36.25 and last traded at $36.2950. Approximately 230,036 shares changed hands during trading, a decline of 89% from the average daily volume of 2,104,616 shares. The stock had previously closed at $34.20.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. UBS Group cut their target price on Century Aluminum from $60.00 to $55.00 and set a "buy" rating on the stock in a research note on Thursday, October 8th. Wells Fargo & Company cut their target price on shares of Century Aluminum from $83.00 to $79.00 and set an "overweight" rating for the company in a report on Friday, September 18th. Weiss Ratings downgraded shares of Century Aluminum from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, July 21st. Wall Street Zen lowered shares of Century Aluminum from a "strong-buy" rating to a "buy" rating in a research note on Sunday, September 20th. Finally, Zacks Research downgraded shares of Century Aluminum from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 8th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Century Aluminum has an average rating of "Hold" and an average price target of $64.60.

Century Aluminum Stock Performance

The company has a current ratio of 2.75, a quick ratio of 1.61 and a debt-to-equity ratio of 0.31. The company has a market capitalization of $3.54 billion, a price-to-earnings ratio of 6.18 and a beta of 2.07. The stock's fifty day simple moving average is $42.11 and its 200-day simple moving average is $50.82.

Century Aluminum (NASDAQ:CENX - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The industrial products company reported $2.46 EPS for the quarter, beating analysts' consensus estimates of $2.33 by $0.13. The company had revenue of $752.10 million for the quarter, compared to the consensus estimate of $817.15 million. Century Aluminum had a net margin of 22.63% and a return on equity of 33.83%. Century Aluminum's quarterly revenue was up 59.0% on a year-over-year basis. Analysts predict that Century Aluminum Company will post 7.75 EPS for the current year.

Hedge Funds Weigh In On Century Aluminum

A number of hedge funds have recently modified their holdings of CENX. Hollencrest Capital Management acquired a new stake in shares of Century Aluminum in the 1st quarter worth $29,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Century Aluminum during the 2nd quarter worth approximately $37,000. Summit Securities Group LLC acquired a new position in shares of Century Aluminum in the first quarter worth $42,000. Strs Ohio purchased a new position in shares of Century Aluminum during the first quarter valued at approximately $47,000. Finally, Meeder Asset Management Inc. acquired a new stake in Century Aluminum in the 2nd quarter worth about $63,000. 61.59% of the stock is currently owned by hedge funds and other institutional investors.

Century Aluminum Company Profile

Century Aluminum Company is a producer of primary aluminum. The company operates aluminum reduction facilities that convert alumina into aluminum metal through the electrolytic smelting process. Its products include standard-grade and value-added primary aluminum, which is supplied to manufacturers and other industrial customers.

Century Aluminum serves markets such as automotive, aerospace, construction, packaging and consumer products. Its operations have included facilities in the United States and Iceland, including smelters in Kentucky, South Carolina and at Grundartangi, Iceland.

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