Traders Purchase Large Volume of Put Options on Cameco (NYSE:CCJ)

Key Points

• Unusually heavy put-option activity: Investors purchased 34,961 put options on Cameco, about 63% above the typical daily volume of 21,499 contracts.
• Shares and earnings weakened: Cameco fell $2.61 to $95.97, while quarterly EPS of $0.13 missed estimates of $0.26 and revenue declined 6.8% year over year.
• Analysts remain broadly bullish: Fourteen analysts rate Cameco a Buy and five rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $145.68; institutional investors own 70.21% of the stock.

Cameco Corporation (NYSE:CCJ - Get Free Report) TSE: CCO was the target of unusually large options trading on Tuesday. Stock investors acquired 34,961 put options on the company. This represents an increase of approximately 63% compared to the typical daily volume of 21,499 put options.

Cameco Stock Performance

NYSE:CCJ traded down $2.61 during midday trading on Tuesday, hitting $95.97. The company's stock had a trading volume of 2,584,080 shares, compared to its average volume of 3,648,429. Cameco has a fifty-two week low of $68.96 and a fifty-two week high of $135.24. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.06 and a quick ratio of 2.10. The firm has a market cap of $41.80 billion, a P/E ratio of 162.66, a P/E/G ratio of 1.67 and a beta of 1.05. The firm's 50 day moving average is $96.19 and its 200-day moving average is $107.97.

Cameco (NYSE:CCJ - Get Free Report) TSE: CCO last announced its quarterly earnings data on Friday, July 31st. The basic materials company reported $0.13 EPS for the quarter, missing the consensus estimate of $0.26 by ($0.13). The business had revenue of $573.06 million for the quarter, compared to analyst estimates of $579.60 million. Cameco had a net margin of 10.20% and a return on equity of 7.59%. The business's revenue was down 6.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.71 earnings per share. Equities analysts anticipate that Cameco will post 1.27 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Cameco

Several hedge funds have recently added to or reduced their stakes in CCJ. Vanguard Group Inc. raised its stake in shares of Cameco by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 18,059,335 shares of the basic materials company's stock valued at $1,653,639,000 after buying an additional 258,193 shares during the last quarter. Capital World Investors boosted its stake in shares of Cameco by 0.3% in the fourth quarter. Capital World Investors now owns 13,545,354 shares of the basic materials company's stock worth $1,240,047,000 after buying an additional 41,430 shares during the last quarter. Bank of America Corp DE acquired a new stake in Cameco during the second quarter worth about $735,498,000. Van ECK Associates Corp grew its holdings in Cameco by 15.6% during the fourth quarter. Van ECK Associates Corp now owns 6,292,995 shares of the basic materials company's stock worth $575,771,000 after acquiring an additional 849,188 shares during the period. Finally, Morgan Stanley raised its position in Cameco by 7.0% during the fourth quarter. Morgan Stanley now owns 4,978,333 shares of the basic materials company's stock valued at $455,468,000 after acquiring an additional 323,693 shares in the last quarter. 70.21% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

CCJ has been the subject of several research analyst reports. William Blair initiated coverage on shares of Cameco in a research report on Monday, April 20th. They issued an "outperform" rating for the company. Truist Financial upped their price target on shares of Cameco from $129.00 to $130.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $135.00 price target on shares of Cameco in a report on Monday, June 15th. Royal Bank Of Canada lifted their price objective on shares of Cameco from $160.00 to $175.00 and gave the stock an "outperform" rating in a research note on Monday, June 29th. Finally, Scotiabank reissued an "outperform" rating and issued a $175.00 target price on shares of Cameco in a research report on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Cameco currently has an average rating of "Moderate Buy" and a consensus target price of $145.68.

About Cameco

Cameco Corporation NYSE: CCJ is a leading producer of uranium and a supplier to the global nuclear power industry. Headquartered in Saskatoon, Saskatchewan, Canada, the company is engaged in the exploration, mining, milling and sale of uranium concentrate, commonly known as yellowcake, which is used as fuel for nuclear reactors. Cameco also participates in services and activities that support the front end of the nuclear fuel cycle, including processing and marketing of uranium to utilities under long‑term and spot contracts.

The company's operations have historically centered in Canada and the United States, where it operates and develops uranium mining and processing properties.

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