Desjardins Upgrades Centerra Gold to Moderate Buy

Centerra Gold (NYSE:CGAU) has recently received an upgrade from Desjardins, a financial institution, which has now assigned the stock a "moderate buy" rating. This update was reported in a research note issued on Thursday.

Apart from Desjardins, various other analysts have also weighed in on Centerra Gold's stock performance. CIBC affirmed a "neutral" rating while raising its price target for the shares to $13.00, up from a previous target of $11.00, in a report released on July 10th. Meanwhile, CIBC World Markets downgraded the rating from "strong buy" to "hold" during the same time frame. Currently, there are two analysts who have rated the stock as a hold and three who believe it to be a buy. According to MarketBeat.com, the average rating for Centerra Gold stands at "Moderate Buy," with a consensus target price set at $11.00.

Recent Market Activity of Centerra Gold

On Thursday, Centerra Gold's stock opened at $6.52. This represents a significant fluctuation, given that the maximum price over the past 52 weeks was $7.82, while the lowest was $4.47. The company's market capitalization is approximately $1.38 billion, and it has a price-to-earnings (P/E) ratio of 10.35, alongside a beta of 0.98. Moreover, the stock’s 50-day and 200-day moving averages are $7.09 and $6.85, respectively.

On August 1st, Centerra Gold reported its quarterly earnings, revealing earnings per share (EPS) of $0.23, which exceeded the consensus estimate of $0.16 by $0.07. The company recorded a net profit margin of 10.68% along with a return on equity of 10.72%. Their revenue for that quarter was reported at $282.31 million. In the same quarter last year, Centerra Gold had an EPS of ($0.20). Analysts predict an EPS of 0.84 for the current fiscal year.

Institutional Interest in Centerra Gold

Recent changes in positions by hedge funds indicate growing interest in Centerra Gold. For instance, CWM LLC entered into a new investment, purchasing shares worth about $57,000 in the third quarter. Vanguard Personalized Indexing Management LLC increased its holdings by 12.3%, acquiring an additional 1,573 shares in the second quarter for a total worth of $96,000. Similarly, Virtu Financial LLC and DekaBank Deutsche Girozentrale have also added new positions in Centerra Gold. Interestingly, about 55.40% of the company's shares are held by institutional investors and hedge funds.

About Centerra Gold

Centerra Gold Inc. is a dedicated gold mining firm involved in the acquisition, exploration, development, and operation of gold and copper mining properties not only in North America but also in Turkey and other global regions. The company is focused on exploring for deposits of gold, copper, and molybdenum, with its flagship operations being the Mount Milligan gold-copper mine in British Columbia, Canada, and the Öksüt gold mine in Turkey.

Conclusion

The recent upgrade by Desjardins adds to a series of analyst reviews surrounding Centerra Gold, which could influence both investor sentiment and stock performance moving forward as new ratings and price targets come into play.

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