Centerra Gold (NYSE:CGAU) Shares Gap Down on Disappointing Earnings

Centerra Gold Inc. (NYSE:CGAU) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $6.65, but opened at $6.25. Centerra Gold shares last traded at $6.30, with a volume of 143,088 shares traded.

The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.03). Centerra Gold had a net margin of 8.31% and a return on equity of 10.34%. The business had revenue of $302.40 million during the quarter, compared to the consensus estimate of $316.92 million.

Centerra Gold Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 27th. Stockholders of record on Thursday, March 13th will be given a $0.07 dividend. This is a positive change from Centerra Gold’s previous quarterly dividend of $0.05. This represents a $0.28 annualized dividend and a dividend yield of 4.43%. Centerra Gold’s dividend payout ratio is presently 45.83%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Desjardins lowered shares of Centerra Gold from a “moderate buy” rating to a “hold” rating in a research note on Thursday, February 13th. Scotiabank decreased their target price on Centerra Gold from $10.00 to $9.00 and set a “sector outperform” rating on the stock in a research report on Wednesday, January 15th. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, Centerra Gold presently has an average rating of “Hold” and a consensus price target of $11.00.

Hedge Funds Weigh In On Centerra Gold

A number of hedge funds have recently bought and sold shares of CGAU. Connor Clark & Lunn Investment Management Ltd. increased its holdings in shares of Centerra Gold by 36.5% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 4,390,005 shares of the company’s stock worth $31,514,000 after purchasing an additional 1,175,000 shares during the period. Jane Street Group LLC increased its stake in Centerra Gold by 145.6% during the 3rd quarter. Jane Street Group LLC now owns 419,992 shares of the company’s stock worth $3,015,000 after acquiring an additional 249,004 shares during the period. Geode Capital Management LLC raised its holdings in Centerra Gold by 378.7% in the 3rd quarter. Geode Capital Management LLC now owns 454,939 shares of the company’s stock valued at $4,152,000 after acquiring an additional 359,905 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Centerra Gold during the 3rd quarter valued at $4,454,000. Finally, HighTower Advisors LLC bought a new stake in shares of Centerra Gold during the 3rd quarter valued at $127,000. 55.40% of the stock is owned by institutional investors.

Centerra Gold Stock Performance

The company has a market capitalization of $1.33 billion, a price-to-earnings ratio of 13.20 and a beta of 0.91. The firm has a fifty day moving average price of $6.06 and a 200-day moving average price of $6.51.

About Centerra Gold

Centerra Gold Inc, a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects are the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt gold mine located in Turkey.