4. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 40
Cameco Corporation (NYSE:CCJ) produces and markets uranium. WallStreetBets is bullish on the nuclear energy sector and Cameco Corporation (NYSE:CCJ) and are buying the stock in September, expecting it to “take off”. Shares of Cameco Corporation (NYSE:CCJ) have gained 18.66% over the past month, as of September 11.
On July 27, Cameco Corporation (NYSE:CCJ) announced strong earnings for the second quarter of fiscal 2022. The company reported earnings per share of $0.14 and beat EPS estimates by $0.13. The company’s revenue for the quarter amounted to roughly $435 million, up 52% year over year, and outperformed estimates by $52 million.
Wall Street is bullish on Cameco Corporation (NYSE:CCJ). On August 2, Scotiabank analyst Orest Wowkodaw raised his price target on Cameco Corporation (NYSE:CCJ) to C$44 from C$43 and maintained a buy-side Outperform rating on the shares. On August 17, GLJ Research analyst Gordon Johnson raised his price target on Cameco Corporation (NYSE:CCJ) to C$48.40 from C$37.86 and maintained a Buy rating on the shares.
At the close of Q2 2022, 40 hedge funds were bullish on Cameco Corporation (NYSE:CCJ) and held stakes worth $477 million in the company. Of those, Driehaus Capital was the top shareholder with stakes worth $104.4 million.
Here is what Aristotle Capital Management had to say about Cameco Corporation (NYSE:CCJ) in its first-quarter 2022 investor letter:
“Cameco, the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”
