In the first quarter of 2023, Causeway Capital Management LLC made significant adjustments to its investment in Centerra Gold Inc. (NYSE:CGAU), reducing its holdings by 50%. According to a filing with the Securities and Exchange Commission (SEC), the firm sold 37,000 shares during this period, resulting in ownership of 37,000 shares at the end of the quarter. The value of Causeway Capital Management LLC’s stake in Centerra Gold amounted to $239,000.
Centerra Gold, a strong player in the mining industry, has recently communicated its decision to pay a quarterly dividend. This dividend was disbursed on Tuesday, August 29th. Shareholders who were recorded as of Tuesday, August 15th received a $0.053 dividend per share. On an annualized basis, this translates to a dividend of $0.21 per share and reflects a yield of 3.76%. Importantly, this represents an improvement from Centerra Gold’s previous quarterly dividend payment of $0.05. The ex-dividend date for this particular dividend offering was Monday, August 14th.
It is worth noting that Centerra Gold’s current dividend payout ratio stands at -16.67%, indicating that the company allocated more funds towards dividends than it generated in earnings during this specific period.
This recent development suggests that Causeway Capital Management LLC views its investment strategy in Centerra Gold differently compared to previous quarters. By trimming their holdings by half and taking into account the quarterly dividend adjustment made by Centerra Gold, it appears that Causeway Capital Management LLC has been actively managing its portfolio for optimal returns.
As always with financial matters, these decisions are best understood within the context of broader market trends and economic indicators prevailing at the time. It will be interesting to track how Causeway Capital Management LLC’s future actions unfold regarding their investments in Centerra Gold and other entities within their portfolio.
This information is accurate as of the reference date, September 10, 2023.
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Institutional Investors Modify Holdings of Centerra Gold as Research Firms Provide Insight into Future Prospects
Institutional investors have been making significant modifications to their holdings of Centerra Gold, a prominent mining corporation. Notably, Bessemer Group Inc. has increased its stake in the company by 1.8% during the fourth quarter, acquiring an additional 5,723 shares and bringing its total ownership to 317,180 shares valued at $1,642,000. Similarly, Franklin Resources Inc. has grown its stake by 0.5% during the same period, purchasing an extra 6,006 shares and now owning a total of 1,158,476 shares worth $5,998,000.
Furthermore, UBS Group AG has also increased its stake in Centerra Gold by an impressive margin of 27.4% during the first quarter. The institution now holds 27,993 shares of the company’s stock valued at $181,000 after purchasing an additional 6,021 shares. Bank of New York Mellon Corp has followed suit with an increase of 11.0% in its stake during the first quarter by acquiring an additional 6,856 shares worth $448,000.
Lastly, Credit Suisse AG has implemented a more conservative growth strategy with a modest increase in its stake by only 2.2%, purchasing an additional 7,053 shares worth $2,922,o00 during the first quarter.
When considering all these institutional investors and hedge funds combined who have modified their holdings recently in Centerra Gold Inc., it is notable that they now collectively own around 51.53% of the company’s stock.
Research firms have also weighed in on CGAU recently. A notable mention goes to Raymond James which raised its rating on Centerra Gold from “market perform” to “outperform” in a research note released on May 31st. Scotiabank also began covering Centerra Gold as part of their research on May 25th and gave the stock an “outperform” rating. Credit Suisse Group, in another research note on June 20th, upped its price target on Centerra Gold from C$8.00 to C$9.50.
TD Securities took a more positive approach by upgrading Centerra Gold’s rating from “hold” to “buy” in a research report published on May 31st. Lastly, National Bank Financial decreased their price objective on shares of Centerra Gold from C$13.00 to C$12.50 in a research report issued on May 18th.
As of the most recent trading day, Centerra Gold stock opened at $5.64. It has experienced significant fluctuations throughout the year with a 52-week low of $3.77 and a 52-week high of $7.71. The firm’s moving averages stand at $6.00 for the past 50 days and $6.20 for the past 200 days.
Centerra Gold Inc., listed on NYSE as CGAU, currently possesses a market capitalization of $1.22 billion while displaying a negative PE ratio of -4.48 and a beta value of 0.81.
In terms of earnings, Centerra Gold last released its financial results on July 31st, revealing earnings per share (EPS) of ($0.20) for the quarter, falling short by ($0.01) in comparison to analysts’ consensus estimates of ($0.19). During this quarter, the company generated revenue amounting to $184.52 million.
Centerra Gold’s net margin is reflecting negatively at -34.71%, indicating that the company is currently operating with minimal profitability or possibly facing some financial challenges.Despite these challenges, industry experts anticipate that Centerra Gold Inc. will post an EPS of 0..09 for the current fiscal year.
As investors continue to assess their positions and alter their holdings in Centerra Gold, it is clear that the company’s financial performance and market conditions remain major factors contributing to the decision-making process. With the support and guidance of research firms, investors will seek insight into the future prospects of this mining corporation.
