Centerra Gold Inc. (NYSE:CGAU) Sees 26.6% Decrease in Short Interest in March

Centerra Gold Inc. (NYSE:CGAU) experienced a notable decline in short interest during March. As of March 15th, short interest amounted to 2,650,000 shares, representing a decrease of 26.6% from the total of 3,610,000 shares reported on February 28th. This indicates that around 1.3% of the company's shares are currently sold short. With an average trading volume of 952,800 shares, the days-to-cover ratio stands at 2.8 days, suggesting a lower demand for short selling.

Centerra Gold Stock Performance

As of the latest trading session, Centerra Gold's stock opened at $6.35 on Friday. The company's 50-day moving average is at $6.17, while the 200-day moving average is $6.34. The stock has recorded a 12-month low of $5.46 and a high of $7.82, reflecting significant price fluctuations over the past year. Currently, the market capitalization for Centerra Gold is approximately $1.33 billion, with a price-to-earnings (P/E) ratio of 17.63 and a beta of 0.92, indicating lower volatility compared to the market.

Quarterly Earnings Results

On February 20th, Centerra Gold released its quarterly earnings results, reporting an earnings per share (EPS) of $0.17. This result fell short of analyst projections, which had anticipated an EPS of $0.20, representing a miss of $0.03. The company's return on equity was recorded at 8.83%, alongside a net margin of 6.62%. Centerra Gold generated revenue of $302.40 million for the quarter, while analysts had expected $316.92 million. Looking ahead, analysts predict that the company will achieve an EPS of 0.59 for the current fiscal year.

Dividend Increase Announced

Recently, Centerra Gold declared a quarterly dividend, which was disbursed on March 27th. Shareholders who were on record as of March 13th received a dividend of $0.07 per share. The dividend, which represents an increase from the previous payout of $0.05, translates to an annualized dividend of $0.28, equating to a yield of 4.41%. The company's dividend payout ratio stands at 52.78%, highlighting its commitment to returning value to shareholders.

Institutional Investment Trends

Several institutional investors have made significant adjustments to their holdings in Centerra Gold. Notably, Jane Street Group LLC increased its position by 145.6% in the third quarter, acquiring an additional 249,004 shares, bringing its total to 419,992 shares valued at $3,015,000. Similarly, Geode Capital Management LLC boosted its holdings by 378.7%, acquiring an additional 359,905 shares to reach a total of 454,939 shares valued at $4,152,000. Additionally, Public Employees Retirement System of Ohio established a new position valued at $4,454,000, while Barclays PLC raised its holdings by 284.5%. Overall, hedge funds and institutional investors now control 55.40% of Centerra Gold's shares, reflecting a growing interest in the company.

Analyst Ratings Overview

Various analysts have expressed their views on Centerra Gold's stock. Scotiabank recently reduced its price target from $10.00 to $9.00, maintaining a "sector outperform" rating. CIBC reiterated a "neutral" rating, and National Bank Financial upgraded the stock to a "strong-buy." Desjardins changed its rating from "moderate buy" to "hold," while Cormark also downgraded its stance from "moderate buy" to "hold." Currently, the stock holds a consensus rating of "Moderate Buy" among analysts, with an average price target set at $11.00.

Company Background

Centerra Gold Inc. is primarily involved in the acquisition, exploration, development, and operation of gold and copper mining properties both in North America and internationally. The company is recognized for its flagship projects, which include the 100% owned Mount Milligan gold-copper mine situated in British Columbia, Canada, and the Öksüt gold mine located in Turkey. Centerra Gold is actively exploring various minerals, including gold, copper, and molybdenum, which supports its growth strategy.

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