On May 14, 2023, Oppenheimer & Co. Inc. made an eye-catching announcement that they have increased their stake in shares of Cameco Co., the basic materials company listed on both New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSE). According to the Form 13F filing with the Securities and Exchange Commission (SEC), the company boosted its shares by 25.5%, buying an additional 4,242 shares during the quarter, raising their total holdings in Cameco to 20,888 worth $474,000.
Oppenheimer & Co. Inc.’s move has caught many investors’ attention as it highlights a rising interest among hedge funds to invest in Cameco’s stock despite its PE ratio of a staggering 95.55, which is almost three times higher than the industry average of 33. The credit rating agency Moody’s has also recently downgraded the outlook for the uranium mining industry from stable to negative due to concerns about declining demand in nuclear energy.
Cameco offers a suite of services related to uranium production catering majorly towards electricity generation purposes worldwide. The demand for uranium has been highly volatile since Japan’s Fukushima catastrophe that led to many countries reevaluating their nuclear energy policies resulting in the market showing bearish tendencies from most financial institutions.
As per recent updates, CCJ stocks price had opened at $27.71 on Friday setting off over its current $12 billion market cap; an impressive figure after all bumpy last few years.
Cameco is expected to make an important strategic shift as Lockheed Martin entered into a memorandum towards resource space engagement agreement with Cameco Corporation; this new venture could open new possibilities for CBM (Coal Bed Methane) resources where Cameco already has deep experience.
To see detailed information on how other hedge funds are holding CCJ stock or what insider trades are there too visit HoldingsChannel.com, the source where the official 13F filing is available. As investors keep a keen eye on Cameco as it navigates through economic uncertainty and pivots with the new Lockheed Martin Collaboration Agreement, many are anticipating what moves will be made by Oppenheimer & Co. Inc., other hedge funds and traders alike.
Institutional Investors & Hedge Funds Show Interest in Cameco Corp.’s Uranium Business
Recent filings show that a number of hedge funds and institutional investors have added to or reduced their stakes in Cameco Corp. (NYSE:CCJ) (TSE:CCO), a provider of uranium, including 1832 Asset Management L.P., Bogart Wealth LLC, Larson Financial Group LLC, Sentry Investment Management LLC, and Zions Bancorporation N.A. Together, institutional investors own over half of CCJ’s stock at present. This news follows recent research reports by Scotiabank, Raymond James, StockNews.com, and TD Securities on the company’s shares and target prices.
Cameco’s quarterly earnings results for Q4 2022 were posted earlier this year; the company reported $0.07 EPS for the period but fell short of analysts’ consensus estimates by $0.02. The company’s revenue during the quarter was around $386 million. Cameco had a net margin of 7.84%, while its return on equity stood at 4.26%. Sell-side analysts estimate that the company will post an EPS of $0.89 for the current fiscal year.
The Uranium segment is one component of Cameco Corp.’s business; this business segment is involved in exploring and mining uranium concentrate, milling it to create fuel-grade uranium concentrate which is then sold to nuclear power plants worldwide as a key component in nuclear power generation. The Fuel Services segment deals with refining, conversion and fabrication of fuel-grade uranium concentrate into nuclear fuel rods which are purchased by nuclear power plants.
Overall as an energy producer within North America specialty expertise and knowledge exists through industry publications via forward-thinking research facilities such as Run Energy Canada Inc., Canadian Nuclear Association (CNA), Women in Renewable Energy WiRE.ca among others creating a strong resource collective nationally facilitating solutions to meet future needs today influence perception globally.
In conclusion, despite mixed messages from recent research reports on Cameco Corporation’s shares across leading investment banks, recent filings show that hedge funds and institutional investors are taking positions in the company. Such activity suggests that institutional investors may see potential value in CCJ’s Uranium business and long-term growth opportunities in this industry. Coupled with promising targets set by TD Securities, Cameco Corp. appears to be carving out a niche for itself within the energy sector in North America.