Centerra Gold (NYSE:CGAU) Shares Gap Down After Earnings Miss

Shares of Centerra Gold Inc. (NYSE:CGAU) gapped down before the market opened 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 changing hands.

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

Centerra Gold Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 27th. Investors of record on Thursday, March 13th will be given a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 4.43%. This is a boost from Centerra Gold’s previous quarterly dividend of $0.05. Centerra Gold’s dividend payout ratio is currently 45.83%.

Analysts Set New Price Targets

A number of research firms have issued reports on CGAU. Scotiabank decreased their target price on Centerra Gold from $10.00 to $9.00 and set a “sector outperform” rating for the company in a research note on Wednesday, January 15th. Desjardins cut Centerra Gold from a “moderate buy” rating to a “hold” rating in a research note on Thursday, February 13th. Three investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $11.00.

Institutional Investors Weigh In On Centerra Gold

A number of hedge funds and other institutional investors have recently bought and sold shares of CGAU. Millennium Management LLC grew its stake in shares of Centerra Gold by 0.3% during the 4th quarter. Millennium Management LLC now owns 585,238 shares of the company’s stock worth $3,330,000 after acquiring an additional 1,663 shares in the last quarter. Toronto Dominion Bank increased its stake in Centerra Gold by 8.8% in the 4th quarter. Toronto Dominion Bank now owns 36,901 shares of the company’s stock valued at $210,000 after buying an additional 2,980 shares during the last quarter. Hsbc Holdings PLC lifted its position in Centerra Gold by 6.5% during the 4th quarter. Hsbc Holdings PLC now owns 52,769 shares of the company’s stock worth $299,000 after buying an additional 3,201 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in Centerra Gold by 2.0% during the 4th quarter. The Manufacturers Life Insurance Company now owns 181,755 shares of the company’s stock worth $1,036,000 after buying an additional 3,608 shares in the last quarter. Finally, Capstone Investment Advisors LLC boosted its stake in shares of Centerra Gold by 34.2% during the 4th quarter. Capstone Investment Advisors LLC now owns 16,712 shares of the company’s stock worth $95,000 after buying an additional 4,263 shares during the last quarter. Institutional investors and hedge funds own 55.40% of the company’s stock.

Centerra Gold Stock Performance

The company has a fifty day moving average price of $6.06 and a two-hundred day moving average price of $6.51. The company has a market cap of $1.33 billion, a P/E ratio of 13.20 and a beta of 0.91.

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.