Champion Iron (TSE:CIA) Reaches New 12-Month Low - Here's Why

Key Points

• Champion Iron shares fell to a new 52-week low, trading as low as C$3.02 before closing near C$3.05, below the previous close of C$3.12.
• Analyst sentiment remains broadly positive despite mixed revisions: the stock has a consensus “Buy” rating and an average price target of C$6.08, although several firms recently lowered their targets or ratings.
• The company has a C$1.71 billion market capitalization and operates the Bloom Lake iron ore complex in Québec, which produces high-purity concentrates with annual capacity of 15 million wet metric tonnes.

Champion Iron Limited (TSE:CIA - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday. The company traded as low as C$3.02 and last traded at C$3.05, with a volume of 128427 shares traded. The stock had previously closed at C$3.12.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Scotia reduced their price objective on shares of Champion Iron from C$5.50 to C$5.00 and set a "sector outperform" rating for the company in a research note on Friday, July 31st. TD upped their target price on shares of Champion Iron from C$5.00 to C$6.50 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. BMO Capital Markets cut shares of Champion Iron from a "strong-buy" rating to a "hold" rating in a report on Monday, June 8th. National Bank Financial cut their price target on shares of Champion Iron from C$5.75 to C$5.50 and set an "outperform" rating on the stock in a report on Tuesday, July 14th. Finally, Scotiabank reduced their price target on shares of Champion Iron from C$6.00 to C$5.50 and set a "sector outperform" rating for the company in a research report on Monday, June 15th. One investment 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. According to MarketBeat.com, Champion Iron currently has a consensus rating of "Buy" and an average target price of C$6.08.

Champion Iron Stock Performance

The company has a quick ratio of 2.01, a current ratio of 1.56 and a debt-to-equity ratio of 87.81. The stock has a market capitalization of C$1.71 billion, a P/E ratio of 15.25, a P/E/G ratio of -1.35 and a beta of 0.30. The business has a fifty day moving average price of C$3.47 and a 200-day moving average price of C$4.18.

About Champion Iron

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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