In this article, we discuss 5 nuclear energy stocks to buy now. If you want our comprehensive analysis of these stocks, go directly to 10 Nuclear Energy Stocks to Buy Now.
5. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 10
Uranium Energy Corp. (NYSE:UEC) is a leading American uranium mining company that processes uranium and titanium concentrates in the United States, Canada, and Paraguay. The company was incorporated in 2003 and is based in Corpus Christi, Texas.
H.C. Wainwright analyst Heiko Ihle on November 10 raised the price target on Uranium Energy Corp. (NYSE:UEC) to $7 from $5.60 and kept a Buy rating on the shares after the company announced that it had entered into a definitive share purchase agreement with Uranium One Investments.
Uranium Energy Corp. (NYSE:UEC) announced on January 31 that the company repaid the remaining $10 million balance of its secured credit facility and is now completely debt free.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 10 funds were bullish on Uranium Energy Corp. (NYSE:UEC), with collective stakes valued at $15.7 million. Marshall Wace LLP is the largest stakeholder of the company, with 2.2 million shares worth $7.60 million.
4. NexGen Energy Ltd. (NYSE:NXE)
Number of Hedge Fund Holders: 15
NexGen Energy Ltd. (NYSE:NXE) is a Vancouver-based company that explores and develops uranium properties in Canada. The stock has gained 39% in the last year, and the company stands to benefit from the shift from oil and gas to alternative energy sources like uranium amid the Russian attack on Ukraine.
On January 14, TD Securities analyst Craig Hutchison lowered the price target on NexGen Energy Ltd. (NYSE:NXE) to C$9.50 from C$10 and kept a Speculative Buy rating on the shares.
In the fourth quarter of 2021, 15 hedge funds reported owning stakes in NexGen Energy Ltd. (NYSE:NXE), with combined stakes amounting to $67.5 million, as compared to 19 funds in the prior quarter, owning stakes in NexGen Energy Ltd. (NYSE:NXE) worth $60.5 million. Falcon Edge Capital is the leading stakeholder of NexGen Energy Ltd. (NYSE:NXE), with 3.3 million shares worth $14.4 million.
3. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 17
Denison Mines Corp. (NYSE:DNN) is a uranium exploration and development company based in Toronto, Canada. The company’s flagship project is the 95% interest owned in the Wheeler River uranium project in the Athabasca Basin region in northern Saskatchewan.
On January 13, Denison Mines Corp. (NYSE:DNN) executed a repayment schedule agreement with Uranium Industry wherein the parties negotiated the debt repayment owing from UI to Denison Mines Corp. (NYSE:DNN), and Denison Mines Corp. (NYSE:DNN) received an initial $2 million debt repayment installment in accordance with the agreement terms. The total amount due to Denison Mines Corp. (NYSE:DNN) under the agreement, including the initial $2 million already received, is approximately $16 million.
According to the fourth quarter database of Insider Monkey, 17 hedge funds were bullish on Denison Mines Corp. (NYSE:DNN), up from 14 funds in the preceding quarter. Titan Global Capital is the largest shareholder of the company, with 6.3 million shares worth $8.73 million.
2. BHP Group Limited (NYSE:BHP)
Number of Hedge Fund Holders: 21
BHP Group Limited (NYSE:BHP) is a mining company based in Melbourne, Australia, that has interests in uranium properties and other sources of energy across Australia, Europe, China, Japan, India, South Korea, North America, South America, and internationally.
On February 23, BHP Group Limited (NYSE:BHP) declared a $3.00 per share semi-annual dividend, a 25% decrease from its prior dividend of $4.00. The dividend is payable on March 28, to shareholders of record on February 25.
Berenberg analyst Richard Hatch on February 23 raised the price target on BHP Group Limited (NYSE:BHP) to £2,300 from £2,200 and kept a Hold rating on the shares.
A total of 21 hedge funds were bullish on BHP Group Limited (NYSE:BHP) in Q4 2021, up from 21 funds in the prior quarter. Fisher Asset Management held the biggest stake in BHP Group Limited (NYSE:BHP), with 7.80 million shares worth approximately $471 million.
Here is what Harding Loevner has to say about BHP Group (NYSE:BHP) in its Q1 2021 investor letter:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
1. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 22
Rio Tinto Group (NYSE:RIO) is a multinational leading metals and mining corporation that produces uranium, in addition to iron ore, copper, diamonds, and gold.
On February 23, Rio Tinto Group (NYSE:RIO) declared a $7.93 per share ordinary dividend. The company also declared a special dividend of $2.47 per share, representing a 79% payout.
RBC Capital analyst Tyler Broda on February 24 lowered the price target on Rio Tinto Group (NYSE:RIO) to £5,100 from £5,200 and kept a Sector Perform rating on the shares.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 22 funds were bullish on Rio Tinto Group (NYSE:RIO), with collective stakes worth $1.8 billion, up from 20 funds in the prior quarter, holding stakes in Rio Tinto Group (NYSE:RIO) worth $1.3 billion. Arrowstreet Capital is a prominent stakeholder of the company, with more than 8 million shares valued at $543.2 million.
You can also take a look at 10 Undervalued Dividend Kings To Buy In 2022 and These 10 Companies Just Increased Their Dividends By Over 10%.
