One cannot ignore the unusually large options trading on the stocks of Cameco Co. (NYSE: CCJ) (TSE: CCO) on Thursday, as traders purchased a staggering 384,705 call options. This is an astronomical increase of 1,490% compared to the typical daily volume of 24,198 call options. This has definitely been no small feat in the world of finance and investments.
The market capitalization of Cameco at present stands at $11.52 billion, with a PE ratio of 156.54 and a PEG ratio of 0.47. The beta of the company is 0.94 which implies that it is less volatile than the market as a whole.
The company maintains a prudent financial position evidenced by its low debt-to-equity ratio of 0.17 and strong liquidity ratios with a quick ratio of 4.74 and current ratio at 5.92 – this puts investors’ minds at ease.
Looking into its underlying fundamentals, Cameco’s fifty-day moving average price rests at $26.04 while its two hundred-day moving average price ticks slightly higher at $24.97 illustrating some bullish sentiment among new investors.
Speaking on ownership stakes —Capital World Investors increased their holdings in Cameco by an overwhelming margin; adding another +8M shares to their portfolio worth $295M during the past quarter alone – putting them firmly behind Mirae Asset Global Investments Co., Ltd which already owns +17M shares worth $497 Million.
It’s important not to forget that institutional investors haven’t had full access for weeks now due to several external restrictions; despite this hurdle, Norges Bank invested heavily in shares worth $72m easing fears about poor performance
Finally, it should be mentioned that Cameco Corp engages primarily in uranium mining via exploration but also deals with uranium conversion including refining services and fuel acquisition services through two segments: Uranium and Fuel Services segments. For the fourth quarter in 2020, the company posted estimated earnings per share of $0.07, which fell short of market expectations by $0.02 based on an average revenue increase over $385.99M for that same period. Analysts speculate that a challenging year lies ahead with an average EPS estimate of 1 for this year-end.
Despite this, one can’t deny the potential upside associated with Cameco stock – large volumes of call options purchased point towards a change in sentiment within the industry, some even suggest it may signal a buying opportunity for savvy investors looking to act swiftly while stocks last; or as often happens when buyers are plentiful- ride the wave and see where it takes you.
Research Firms Offer Mixed Ratings on Cameco Corporation’s Prospects
Cameco Corporation is a Canadian-based company that explores, develops, and produces uranium. The company has received several ratings from different research firms over the years, and in this article, we will discuss some of these ratings.
On Friday, February 10th, Raymond James raised their target price on shares of Cameco from C$45.00 to C$48.00. This came after the company published strong financial results for the year ended December 31st, 2020. Raymond James was impressed with Cameco’s earnings per share (EPS), which exceeded estimates by a margin of $0.05.
Another research firm that weighed in on Cameco is StockNews.com. In their research note issued on April 21st, they rated the company as a “sell.” This rating was based on factors such as the current level of competition in the industry and the challenges posed by alternative energy sources such as solar and wind power.
However, not all research firms have been bearish about Cameco’s prospects. TD Securities raised shares of Cameco to a “buy” rating in their research note released on February 10th. They were optimistic about the outlook for uranium prices, noting that recent supply cuts could lead to higher prices in the near future.
Finally, Scotiabank also weighed in on Cameco’s prospects back on February 10th by raising their target price from C$43.00 to C$50.00. They cited several reasons for their optimism including improved demand for nuclear energy globally and China’s ambitions to become a significant player in this space.
In conclusion, it is evident that different research firms have varying opinions about Cameco Corporation’s prospects. While some firms are bullish about the company’s future growth potential due to increasing demand for nuclear energy globally and possible supply cuts, others point out challenges like stiff competition and alternatives like solar power that could challenge its growth trajectory going forward. It remains to be seen how the company’s fortunes will play out in the years to come, and we shall keep an eye on its performance and ratings from various research firms.
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