American Century Companies Boosts Stake in Centrus Energy Corp. by 483%

American Century Companies Inc. significantly increased its investment in Centrus Energy Corp. (NYSE:LEU) during the second quarter of 2023, as detailed in its latest Form 13F filing with the Securities and Exchange Commission. The investment firm raised its position by an impressive 483.8%, acquiring a total of 247,352 shares. This acquisition included an additional 204,983 shares purchased within the quarter, resulting in a stake valued at approximately $45,310,000.

This strategic move reflects growing interest in Centrus Energy, which supplies nuclear fuel components and services to the nuclear power industry both domestically and internationally. The company operates through two main segments: Low-Enriched Uranium (LEU) and Technical Solutions. As of the latest reporting period, institutional investors and hedge funds hold nearly 50% of the company’s stock.

In addition to American Century, several other investors have also adjusted their positions in Centrus Energy. For example, Stone House Investment Management LLC entered a new position worth $28,000 during the first quarter. Nisa Investment Advisors LLC increased its stake by 157.7% in the second quarter, now holding 183 shares valued at $34,000. Harbour Investments Inc. saw a dramatic increase of 1,181.3% in its holdings, resulting in ownership of 205 shares worth $38,000.

Market Performance and Analyst Ratings

Centrus Energy’s stock opened at $261.37 on the trading day following the filing. The company has shown resilience, with a twelve-month low of $49.40 and a high of $464.25. Centrus Energy currently boasts a market capitalization of $4.76 billion, a price-to-earnings ratio of 59.27, and a beta of 1.56 indicating its volatility relative to the market.

In terms of financial performance, Centrus Energy reported its earnings results on November 6, 2023, revealing an earnings per share (EPS) of $0.19 for the quarter, which fell short of analysts’ expectations of $0.36 by $0.17. Despite this shortfall, the company experienced a 29.8% year-over-year increase in quarterly revenue. Centrus Energy had previously reported an EPS of ($0.30) during the same period last year.

Market analysts have issued varying ratings for Centrus Energy, with Bank of America maintaining a “neutral” rating and adjusting its target price from $210.00 to $285.00. JPMorgan Chase & Co. lowered its target from $275.00 to $245.00, while HC Wainwright reaffirmed a “buy” rating with a target of $300.00. Overall, the consensus rating for Centrus Energy stands at “Moderate Buy,” with an average target price of $227.60 according to MarketBeat.

Centrus Energy continues to attract attention as it navigates the complexities of the nuclear fuel market. With a strong financial foundation and increasing institutional backing, the company is well-positioned to capitalize on the growing demand for nuclear energy solutions.