Traders Purchase High Volume of Call Options on Cameco (NYSE:CCJ)

Cameco Corporation (NYSE:CCJ) (TSE:CCO) saw unusually large options trading on Thursday. Stock traders bought 384,705 call options on the company. This represents an increase of 1,490% compared to the average volume of 24,198 call options.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CCJ. Financial Consulate Inc. purchased a new stake in shares of Cameco in the third quarter worth about $25,000. Strategic Advocates LLC bought a new stake in Cameco during the 3rd quarter worth approximately $28,000. Armstrong Advisory Group Inc. lifted its stake in Cameco by 110.3% in the 3rd quarter. Armstrong Advisory Group Inc. now owns 347 shares of the basic materials company’s stock worth $29,000 after purchasing an additional 182 shares in the last quarter. Sunbelt Securities Inc. lifted its stake in Cameco by 928.6% in the 3rd quarter. Sunbelt Securities Inc. now owns 360 shares of the basic materials company’s stock worth $30,000 after purchasing an additional 325 shares in the last quarter. Finally, Trust Co. of Vermont boosted its holdings in Cameco by 1,029.4% in the 2nd quarter. Trust Co. of Vermont now owns 384 shares of the basic materials company’s stock valued at $29,000 after purchasing an additional 350 shares during the period. Hedge funds and other institutional investors own 70.21% of the company’s stock.

Cameco Stock Performance

Shares of CCJ stock opened at $91.49 on Friday. The firm’s 50 day moving average is $91.18 and its 200 day moving average is $82.86. The stock has a market capitalization of $39.84 billion, a P/E ratio of 106.38 and a beta of 1.01. Cameco has a 12 month low of $35.00 and a 12 month high of $110.15. The company has a current ratio of 2.99, a quick ratio of 1.85 and a debt-to-equity ratio of 0.15.

Cameco (NYSE:CCJ) (TSE:CCO) last issued its earnings results on Wednesday, November 5th. The basic materials company reported $0.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.17). The business had revenue of $313.74 million for the quarter, compared to the consensus estimate of $531.72 million. Cameco had a net margin of 15.24% and a return on equity of 8.58%. The company’s revenue was down 14.7% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.01) EPS. On average, sell-side analysts anticipate that Cameco will post 1.27 earnings per share for the current year.

Cameco Increases Dividend

The business also recently disclosed an annual dividend, which was paid on Tuesday, December 16th. Investors of record on Monday, December 1st were issued a dividend of $0.24 per share. This is a positive change from Cameco’s previous annual dividend of $0.12. The ex-dividend date of this dividend was Monday, December 1st. This represents a yield of 27.0%. Cameco’s payout ratio is currently 19.77%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on CCJ. Scotiabank restated an “outperform” rating on shares of Cameco in a report on Wednesday, October 29th. Glj Research reissued a “buy” rating and set a $99.74 target price on shares of Cameco in a research report on Wednesday, December 3rd. National Bankshares restated an “outperform” rating on shares of Cameco in a research note on Thursday, November 6th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Cameco in a research note on Monday. Finally, Raymond James Financial increased their price objective on Cameco to $150.00 in a report on Wednesday, October 29th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Cameco currently has an average rating of “Moderate Buy” and an average price target of $117.25.

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.