Cameco (NYSE:CCJ) Trading Down 3% - Here's Why

Shares of Cameco Co. (NYSE:CCJ) experienced a decline of 3% on Monday, with the stock trading as low as $50.16 before closing at $50.93. During midday trading, approximately 1,731,752 shares changed hands, indicating a notable drop of 61% from the average daily volume of 4,394,276 shares. This follows a previous closing price of $52.50.

Analyst Ratings Changes

Analysts have recently provided mixed reviews for Cameco (CCJ). Cantor Fitzgerald upgraded the stock from a "neutral" rating to an "overweight" rating as of July 31. Meanwhile, Glj Research reiterated a "buy" rating with a price target of $63.73 on August 14. On September 3, National Bank Financial raised its rating to "strong-buy." However, Scotiabank adjusted its target price down from $81.00 to $80.00, maintaining an "outperform" rating as of August 19. Additionally, Janney Montgomery Scott upgraded Cameco to a "strong-buy" rating on October 4. Currently, one analyst rates the stock as a sell, five analysts have a buy rating, and two have given it a strong buy rating. According to MarketBeat data, Cameco enjoys a consensus rating of "Buy" and a consensus target price of $66.56.

Cameco's Current Financial Position

Cameco is currently trading down 1.8%. The company's financial ratios illustrate its strength: it has a current ratio of 3.22, a quick ratio of 1.48, and a low debt-to-equity ratio of 0.23. The stock also records a 50-day moving average of $47.19 and a 200-day moving average of $48.05. With a market capitalization of $22.44 billion, Cameco has a price-to-earnings (P/E) ratio of 118.44 and a beta of 0.89, indicating lower volatility compared to the broader market.

Institutional Trading Activity

Recent activity among institutional investors shows a trend of increasing stakes in Cameco. For instance, BNP Paribas made a new investment in the stock worth $93,000 during the first quarter. Daiwa Securities Group Inc. significantly expanded its holdings by 207.3%, acquiring 7,990 shares valued at $346,000. Wellington Shields Capital Management LLC also increased its stake by 6.2%, owning 13,700 shares worth $594,000 after adding 800 shares. Larson Financial Group LLC grew its holdings by 99.3%, and Mediolanum International Funds Ltd entered a new position valued at approximately $198,000. Overall, 70.21% of Cameco's stock is owned by institutional investors and hedge funds.

Cameco Company Overview

Cameco Corporation is engaged in providing uranium for electricity generation and operates across multiple segments, including Uranium, Fuel Services, and Westinghouse. The Uranium segment focuses on exploring, mining, and milling, as well as buying and selling uranium concentrate. Conversely, the Fuel Services segment deals with refining, converting, fabricating uranium concentrate, and trading conversion services.

What Should You Do with Cameco?

Before making any investment decisions regarding Cameco, it is essential to consider recent analyst opinions and the market environment. Although the stock is rated as "Buy" by several analysts, some suggest looking at alternative investments that may present better opportunities. Currently, Cameco is not featured among some of the top recommendations by leading analysts.

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