Yellow Cake (LON:YCA) Trading 2.2% Higher – Still a Buy?

Yellow Cake plc (LON:YCA)’s stock price shot up 2.2% during trading on Wednesday . The stock traded as high as GBX 617.50 and last traded at GBX 609.50. 1,213,549 shares changed hands during trading, a decline of 81% from the average session volume of 6,529,032 shares. The stock had previously closed at GBX 596.50.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Citigroup boosted their price objective on Yellow Cake from GBX 670 to GBX 700 and gave the company a “buy” rating in a research note on Thursday, January 15th. Berenberg Bank restated a “buy” rating and set a GBX 704 target price on shares of Yellow Cake in a research report on Thursday, January 22nd. Finally, Canaccord Genuity Group reduced their price target on shares of Yellow Cake from GBX 695 to GBX 680 and set a “buy” rating for the company in a research report on Thursday, December 4th. Five investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock has an average rating of “Buy” and an average target price of GBX 666.80.

Yellow Cake Price Performance

The company has a market capitalization of £1.51 billion, a price-to-earnings ratio of -149.63 and a beta of 0.26. The firm’s 50-day simple moving average is GBX 627.93 and its two-hundred day simple moving average is GBX 586.98.

About Yellow Cake

Yellow Cake is a London-quoted company, incorporated in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding U3O8. It may also seek to add value through other uranium-related activities. Yellow Cake and its wholly owned subsidiary (the “Group”) seek to generate returns for shareholders through the appreciation of the value of its holding of U3O8 and its other uranium-related activities in a rising uranium price environment. The business is differentiated from its peers by its ten-year Framework Agreement for the supply of U3O8 with Kazatomprom, the world’s largest uranium producer.