TLDR
- Energy Fuels (UUUU) stock surged 13.6% on Monday, reaching a high of $13.63 despite lower trading volume
- The stock has returned 21.9% over the past month, outperforming the S&P 500’s 2.3% gain
- Analysts maintain a “Buy” consensus rating with price targets ranging from $6.00 to $12.00
- Company insiders sold over 591,000 shares worth $6.4 million in recent months, including VP Saleem Drera reducing his stake by 91.59%
- The company reported a quarterly loss of $0.10 per share, missing analyst estimates by $0.06
Energy Fuels stock jumped 13.6% on Monday, closing at $13.55 after hitting a session high of $13.63. The uranium and vanadium mining company has been catching investor attention despite some mixed fundamentals.
The stock’s recent performance has been impressive. Over the past month, Energy Fuels returned 21.9%, crushing the S&P 500’s modest 2.3% gain during the same period.
The Mining – Non Ferrous industry gained 8.6% in this timeframe. Trading volume was actually down 9% compared to average levels.
About 9.5 million shares changed hands during Monday’s session. This was below the typical 10.4 million share daily average.
The company trades at a market cap of $3.07 billion. Its beta of 1.76 suggests the stock moves more than the broader market.
Energy Fuels has a 50-day moving average of $9.91. The 200-day moving average sits at $6.53.
The current price sits well above both technical indicators. This shows strong momentum for the uranium miner.
Analyst Views Remain Split
Wall Street analysts are sending mixed messages about Energy Fuels. The stock currently holds a consensus “Buy” rating, but individual opinions vary widely.
B. Riley initiated coverage with a “buy” rating in July. They set a $9.00 price target for the stock.
HC Wainwright raised its price objective to $12.00 from $10.00. The firm maintained a “buy” rating on the shares.
However, Roth Capital downgraded the stock from “buy” to “neutral” in July. They set a $6.00 price target, well below current trading levels.
The average analyst price target sits at $8.19. This is about 40% below Monday’s closing price.
One analyst rates the stock a “Strong Buy.” Two give it a “Buy,” and one assigns a “Hold” rating.
Recent Financial Performance Disappoints
Energy Fuels reported quarterly earnings on August 6th. The results were not encouraging for investors looking at fundamentals.
The company posted a loss of $0.10 per share for the quarter. This missed analyst expectations of a $0.04 loss by $0.06 per share.
Revenue came in at $4.21 million, down 51.7% year-over-year. This fell well short of the $9.4 million consensus estimate.
The revenue miss represented a 55% shortfall from expectations. The company showed a negative return on equity of 17.41%.
Net margin was deeply negative at 143.05%. These numbers paint a challenging financial picture.
For the current fiscal year, analysts expect Energy Fuels to post a loss of $0.10 per share. Next year’s consensus calls for earnings of $0.01 per share, which would represent a turnaround.
Revenue projections show mixed expectations. The current quarter estimate of $9.85 million suggests 143% growth year-over-year.
Full-year revenue is expected to drop 47.8% to $40.8 million. However, next year could see 199% growth to $122.05 million.
Over the last four quarters, Energy Fuels has beaten earnings estimates multiple times. The company topped revenue estimates just once during this period.
Institutional investors have been active in the stock. Kingstone Capital Partners bought a new $29.5 million position in the second quarter.
Alps Advisors increased its stake by 29% to nearly 16 million shares. The position is worth $59.4 million.
Bank of America nearly doubled its position, adding over 2 million shares. The bank now holds 4.4 million shares valued at $25.1 million.
BNP Paribas increased its stake by 530% to over 2 million shares. The position is worth $11.9 million.
Overall, institutional investors own 48.24% of the company. This shows strong institutional interest despite recent volatility.
However, insider selling has been heavy. VP Saleem Drera sold 266,595 shares in August for about $2.9 million.
This represented a 91.59% reduction in his holdings. He’s left with just 24,474 shares after the sale.
Director Dennis Lyle Higgs sold 10,000 shares in September for $126,300. His stake dropped 4.06% to 236,381 shares.
Over three months, insiders sold 591,224 shares worth $6.38 million total. The Zacks research firm gives Energy Fuels a “Hold” rating with a Zacks Rank of #3.
The firm notes the stock is getting investment attention but warns about valuation concerns. Energy Fuels receives an “F” grade on the Zacks Value Style Score, indicating it trades at a premium to peers.
