Scotiabank Cuts Centerra Gold (NYSE:CGAU) Price Target to $9.50

Key Points

• Scotiabank has reduced its price target for Centerra Gold (CGAU) from $12.00 to $9.50, indicating a potential upside of 3.42% from the previous close.
• Centerra Gold reported earnings of $0.25 per share, surpassing estimates, but its revenue for the quarter fell short of expectations at $288.30 million.
• Analysts have mixed ratings on the stock, with an average consensus rating of "Moderate Buy" and target price of $12.83, despite recent downgrades from some firms.

Centerra Gold (NYSE:CGAU - Free Report) had its price target reduced by Scotiabank from $12.00 to $9.50 in a research report sent to investors on Tuesday morning, MarketBeat reports. Scotiabank currently has a sector outperform rating on the stock.

Several other brokerages also recently weighed in on CGAU. National Bankshares reiterated an "outperform" rating on shares of Centerra Gold in a research note on Tuesday, June 24th. CIBC reaffirmed an "outperform" rating on shares of Centerra Gold in a report on Tuesday, July 15th. Royal Bank Of Canada lowered Centerra Gold from an "outperform" rating to a "sector perform" rating and upped their price objective for the stock from $13.00 to $14.00 in a report on Wednesday, September 10th. BMO Capital Markets reaffirmed a "market perform" rating on shares of Centerra Gold in a report on Monday. Finally, Wall Street Zen raised Centerra Gold from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $12.83.

Centerra Gold Price Performance

Shares of CGAU stock traded up $0.30 during midday trading on Tuesday, hitting $9.53. The company had a trading volume of 4,652,101 shares, compared to its average volume of 1,729,713. The company's 50 day simple moving average is $7.79 and its 200 day simple moving average is $7.08. Centerra Gold has a 52-week low of $5.41 and a 52-week high of $9.57. The stock has a market cap of $1.93 billion, a price-to-earnings ratio of 28.88, a PEG ratio of 2.52 and a beta of 0.82.

Centerra Gold (NYSE:CGAU - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.08. Centerra Gold had a return on equity of 9.12% and a net margin of 6.21%.The company had revenue of $288.30 million for the quarter, compared to the consensus estimate of $319.42 million. Analysts anticipate that Centerra Gold will post 0.59 EPS for the current year.

Centerra Gold Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Thursday, August 21st were given a dividend of $0.07 per share. The ex-dividend date was Thursday, August 21st. This represents a $0.28 annualized dividend and a yield of 2.9%. Centerra Gold's dividend payout ratio is 60.61%.

Hedge Funds Weigh In On Centerra Gold

Large investors have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets purchased a new position in shares of Centerra Gold in the 4th quarter worth about $396,000. Deutsche Bank AG raised its holdings in shares of Centerra Gold by 91.5% in the 4th quarter. Deutsche Bank AG now owns 23,218 shares of the company's stock worth $132,000 after purchasing an additional 11,093 shares during the period. Invesco Ltd. raised its holdings in shares of Centerra Gold by 37.5% in the 1st quarter. Invesco Ltd. now owns 2,180,721 shares of the company's stock worth $13,848,000 after purchasing an additional 594,674 shares during the period. Nuveen Asset Management LLC raised its holdings in shares of Centerra Gold by 3.1% in the 4th quarter. Nuveen Asset Management LLC now owns 1,890,136 shares of the company's stock worth $10,750,000 after purchasing an additional 57,609 shares during the period. Finally, Hsbc Holdings PLC raised its holdings in shares of Centerra Gold by 4.7% in the 1st quarter. Hsbc Holdings PLC now owns 55,268 shares of the company's stock worth $351,000 after purchasing an additional 2,499 shares during the period. 55.40% of the stock is currently owned by hedge funds and other institutional investors.

About Centerra Gold

Centerra Gold Inc, a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey.