The Sell-Side Reaction To Century Aluminum Company (CENX)’s Recent Shift

Century Aluminum Company (CENX) shares saw a recent bid of $15.14 and 3.54M shares have exchanged hands in the recent trading session, yielding a -10.41% decline over the past week. The stock price decreased -5.67% or $0.91 versus $16.05 at the end of the prior session. This change led market cap to move at $1.32B, putting the price -12.38% below the 52-week high and 173.78% above the 52-week low. The company’s stock has a normal trading capacity of 2.12M shares while the relative volume is 1.67.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $14.13 while $16.50 target is by far the most aggressive out of analysts who are currently evaluating the company, $2.37 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $10.00, which would be decrease of about -34% of its current value. The mean target of $15.00 should be compared with the price when the stock was languishing around $5.53 a share. And it remains to be seen which target price CENX can achieve without sacrificing much as the company is holding a 131.50% gain for the past twelve months.

By historical standards, Century Aluminum Company remains a cheap stock. The company’s current price-earnings ratio amounts above the average P/E ratio of 25.13 times earnings. For now, Century Aluminum Company is the toast of Wall Street as its ABR stands at 3.30 with 0 out of 4 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Century Aluminum Company has a 16.66% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. Century Aluminum Company has far performed well this year, with the share price up 76.87% since January. Over the past 2 quarters, the stock is up 62.27%, compared with a gain of nearly 19.59% for 3 months and about 11.08% for the past 30 days.

Last time, the company shocked Wall Street by reporting EPS of $-0.05, smashing the consensus of $-0.21 per share. Revenue for the quarter also killed consensus, coming in at $365.79M, compared to the consensus of 364.17M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $0.22. The company is expected to report EPS as high as $0.28 and as low as $0.15 per share. Similarly, full-year EPS forecasts have ranged between $0.38 and $1.13. The mean EPS estimate is $0.75. On the other side, sales forecasts for the current quarter are $397.27M. The stock is expected to report revenue as high as $407M and as low as $390.8M per share. Similarly, full-year sales forecasts have ranged between $1.49B and $1.61B. The mean revenue estimate is $1.54B.

Over the last 5 years, Century Aluminum Company has averaged a 12.25% YoY EPS growth rate and a -0.60% revenue growth rate. Analysts are expecting EPS growth rates to be at -430.80% this quarter and EPS estimate for next year reflect -5.89% growth rate.

Sell-side analysts also have something to say about this company. Cowen analysts stated on 27/04/2017 that they maintained their Market Perform rating. Deutsche Bank had a markedly different take on 28/02/2017, proposing that Century Aluminum Company is now considered Sell versus prior Hold rating. Standpoint Research had a markedly different take on 19/01/2017, proposing that Century Aluminum Company is now considered Hold versus prior Buy rating. JP Morgan raised its rating on Century Aluminum Company to Neutral on 28/10/2016 in a reversal from its prior Underweight rating.

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