Champion Iron (TSE:CIA) Hits New 1-Year Low - Should You Sell?

Key Points

• Champion Iron shares hit a new 52-week low, falling as much as 18.8% intraday to C$1.81 and last trading at C$1.97 versus a prior close of C$2.23.
• Despite the selloff, analysts remain broadly optimistic: the stock has an average “Buy” rating and a consensus price target of C$5.88, though several brokerages recently lowered their targets.
• Champion Iron operates the Bloom Lake Mining Complex in Québec, producing high-purity iron ore concentrate with annual nameplate capacity of 15 million wet metric tonnes.

Champion Iron Limited (TSE:CIA - Get Free Report)'s share price reached a new 52-week low on Thursday. The stock traded as low as C$1.81 and last traded at C$1.97, with a volume of 806,306 shares changing hands. The stock had previously closed at C$2.23.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on CIA. National Bank Financial lowered their target price on Champion Iron from C$5.75 to C$5.50 and set an "outperform" rating on the stock in a research note on Tuesday, July 14th. TD boosted their target price on shares of Champion Iron from C$5.00 to C$6.50 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Raymond James Financial lowered their price target on shares of Champion Iron from C$6.25 to C$5.75 and set an "outperform" rating on the stock in a research report on Wednesday, October 7th. Finally, Scotia lowered their target price on shares of Champion Iron from C$5.50 to C$5.00 and set a "sector outperform" rating on the stock in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of C$5.88.

Champion Iron Trading Down 15.2%

The company has a market capitalization of C$1.06 billion, a price-to-earnings ratio of 9.45, a price-to-earnings-growth ratio of -1.35 and a beta of 0.53. The company has a debt-to-equity ratio of 87.81, a quick ratio of 2.01 and a current ratio of 1.56. The firm has a fifty day moving average price of C$3.02 and a 200-day moving average price of C$4.25.

Champion Iron Company Profile

Champion is a high-purity iron ore producer with operations in Canada and Norway. Through Quebec Iron Ore Inc, Champion owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, approximately 13 kilometres north of Fermont, Québec. Bloom Lake is an open-pit operation with two concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wmt per year that produce low contaminant high-purity iron ore concentrates with a proven ability to produce direct reduction grade quality iron ore concentrate.

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