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Century Aluminum stock soars to 52-week high of $22.95

Published 2024-11-15, 09:38 a/m
CENX
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Century Aluminum Co (NASDAQ:CENX) shares have reached a remarkable 52-week high, trading at $22.95. This milestone reflects a significant surge in the company's stock value, underpinned by a robust 1-year change of 203.21%. Investors have shown increased confidence in the aluminum producer, propelling the stock to new heights over the past year amidst a dynamic market environment. The impressive year-over-year growth showcases the company's resilience and adaptability in navigating the challenges and opportunities within the metals sector.

In other recent news, Century Aluminum has reported a robust third quarter, marked by an adjusted EBITDA of $104 million, boosted by improved aluminum prices and the implementation of new Section 45X tax credits. The company has also reported net sales of $539 million and shipments of approximately 169,000 tons. BMO (TSX:BMO) Capital has revised its price target for Century Aluminum to $18.00, up from the previous $16.00, and maintains a Market Perform rating on the stock. This follows the company's EBITDA of $69 million in Q3, which aligns closely with BMO Capital's and the consensus estimates of $70 million and $68 million, respectively.

Looking ahead, Century Aluminum has issued an EBITDA guidance range of $70 million to $80 million for the fourth quarter of 2024. This projection surpasses BMO Capital's forecasts but matches the general market consensus. The company is also conducting a strategic review of alternatives for the idled Hawesville smelter, a development that could affect future operations and financial outcomes.

Finally, the company is evaluating the competitive cost structure of the Jamalco alumina asset and exploring the potential redevelopment of its Hawesville facility. These recent developments underscore Century Aluminum's proactive approach and strategic planning.

InvestingPro Insights

Century Aluminum's recent stock performance aligns with several key insights from InvestingPro. The company's shares are currently trading near their 52-week high, with a price that's 92.75% of the peak, confirming the article's observation. This surge is reflected in the impressive returns over various timeframes, with a 21.45% gain in the past month and a substantial 179% return over the last year, surpassing the 203.21% mentioned in the article.

InvestingPro Tips highlight that CENX has shown strong returns over the last month, three months, and five years, indicating consistent positive momentum. Additionally, analysts predict the company will be profitable this year, which could be contributing to investor optimism.

However, it's worth noting that CENX suffers from weak gross profit margins, with InvestingPro data showing a gross profit margin of 7.52% for the last twelve months as of Q3 2024. Despite this, the company has managed to achieve an EBITDA growth of 328.41% over the same period, suggesting improved operational efficiency.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Century Aluminum, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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