CCJ - Why Cameco Corp Stock Fell 5% on Tuesday
2023-12-19 16:42:00 ET
Shares of Canadian uranium miner Cameco Corporation (NYSE: CCJ) , which have more than doubled in price over the past year and hit an all-time high late last month, turned tail and dropped 5.6% through close of trading Tuesday.
The sudden, sharp decline followed Cameco's giving of an "investor day" presentation this morning, which inspired analysts at Canaccord Genuity to downgrade the stock from "buy" to "hold" this afternoon.
And yet, investors' reaction to today's news was a little strange. In today's presentation, Cameco CFO Grant Isaac noted that Cameco is currently "in [a] very advantageous position" with nuclear power utility customers buying uranium in excess of [the] "replacement rate" as they anticipate future needs for more electricity -- and more uranium to feed that need. Furthermore, Isaac noted that Cameco is able to supply the additional uranium from "brownfield" projects -- i.e., existing mines -- rather than needing to develop new mines to get access to the needed uranium.
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Why Cameco Corp Stock Fell 5% on Tuesday