Latest news with #Centrus
Yahoo
5 days ago
- Business
- Yahoo
Why Centrus Energy Stock Crashed Today
Key Points Centrus Energy announced a large debt issuance last night. The uranium supply company could raise as much as $750 million in new cash. It could also be setting up investors for a large amount of stock dilution. 10 stocks we like better than Centrus Energy › Shares of Centrus Energy (NYSEMKT: LEU) nosedived 9.9% through 9:45 a.m. ET Wednesday. The supplier of low-enriched uranium used as atomic fuel for nuclear power plants announced last night that it will issue $650 million worth of convertible senior notes due in 2032 (i.e., debt convertible into stock) in an effort to raise the cash it needs to build a supplemental business producing high-assay, low-enriched uranium (HALEU) for use in advanced reactors. Details, details If there's sufficient interest among the banks underwriting the debt offering, Centrus might upsize its debt offering by $100 million, to $750 million total. Centrus hasn't yet said what interest rate the notes will pay, although in deals like these notes often pay interest below market rates for ordinary debt. The downside for investors is more on the convertible side of things -- where the company issuing the notes eventually lets its lenders convert the notes into equity in the company, diluting the shareholdings of existing investors. Should you sell Centrus stock? It's not immediately clear why Centrus is doing this offering. Profitable where most "nuclear stocks" are losing money, Centrus generates significant free cash flow already -- $107 million over the last 12 months -- so there seems to be no immediate cash need. Indeed, Centrus already has more cash than debt on its balance sheet, and seems in a pretty healthy condition. Viewed most favorably, this suggests Centrus will probably get pretty good terms on its debt offering, keeping interest expense low. It also suggests Centrus has a deal in mind, or at the very least, is prepared to make a big push toward building out its HALEU uranium business. Investors are selling Centrus stock, and I understand why. But I rather suspect they should be buying Centrus stock instead. Should you buy stock in Centrus Energy right now? Before you buy stock in Centrus Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Centrus Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Centrus Energy Stock Crashed Today was originally published by The Motley Fool
Yahoo
01-07-2025
- Business
- Yahoo
Why Did Centrus Energy Stock Drop Today?
Centrus Energy is betting on a nuclear renaissance to drive demand for low-enriched uranium to power nuclear plants. "The Wall Street Journal" reminds us that nuclear stock investors have been burned before. 10 stocks we like better than Centrus Energy › Centrus Energy (NYSEMKT: LEU) stock tumbled 8.1% through 11:45 a.m. ET Tuesday after The Wall Street Journal warned investors that President Trump's plan to kick-start a nuclear power renaissance in America "won't be easy." Centrus is today probably best known as one of a handful of nuclear stocks aiming to restart uranium enrichment for use as fuel in nuclear power plants in the U.S. The company already sells enriched uranium to power plants in the U.S., of course, but primarily in the capacity of a broker, buying uranium from foreign suppliers and reselling it in the U.S. Both parts of the business, therefore, depend on growing demand for nuclear power -- from a growing number of nuclear power plants operating in the U.S. According to the Journal, though, "Most current efforts [to grow nuclear power supply] are aimed at extending the operating licenses of existing reactors or trying to restart a handful of recently closed reactors." That's more likely to maintain existing levels of uranium demand than grow it. And as for sparking a "nuclear renaissance," the Journal points out that this has been predicted multiple times in the past, but "didn't pan out." Will this time be different? Perhaps. But with new nuclear plants still costing $30 billion and up to get approved and built, something big needs to change for Centrus to justify its stock valuation, which is currently 55 times next year's expected earnings. Despite all the hype, and despite (or because of) its stock price quadrupling over the past year, Centrus remains a speculative investment. Caveat investor. Before you buy stock in Centrus Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Centrus Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Did Centrus Energy Stock Drop Today? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Why Centrus Energy Stock Plunged Today
Oklo has an agreement in principle to buy enriched uranium from Centrus. Today, Oklo announced a partnership with Hexium and TerraPower to source a separate stream of highly enriched uranium. Is Oklo breaking up with Centrus? No one yet knows. 10 stocks we like better than Centrus Energy › Shares of Centrus Energy (NYSEMKT: LEU), a specialist in enriching uranium for use as fuel in nuclear reactors, tumbled 4.7% through 12:50 p.m. ET Wednesday after one of its partners announced some disconcerting news. Nuclear power plant start-up Oklo, which had previously signed a memorandum of understanding agreeing to accept high-assay low-enriched uranium (HALEU) supplies from Centrus once its reactors are running, is now teaming up with two other nuclear start-ups. Privately held Hexium and privately held and Bill Gates backed TerraPower, will, along with Oklo, "leverage advanced laser enrichment technology to build a scalable U.S. nuclear fuel supply for advanced reactors." Oklo's desire to team up with a heavyweight like TerraPower is understandable. For a cash-strapped nuclear start-up, it may pay to be on the same team as a company with a backer as well heeled as Gates. Also, Hexium's new technology for enriching uranium may hold advantages over Centrus'. That being said, Oklo's joining a new team does have the potential to leave Centrus in the lurch. We don't know at this time whether Hexium's tech will pan out nor, if it does, whether Oklo will still proceed to buy HALEU uranium from Centrus as well as from Hexium. But if it doesn't then this could mean Centrus has just lost a customer that it was counting on keeping. Don't be too quick to pull the sell trigger on Centrus, though. Just because Oklo thinks Hexium will work out as a partner doesn't mean it's right. Centrus is at least a known quantity and an established enriching company already. It's also profitable, earning more than $100 million over the last 12 months, generating positive free cash flow, free of net debt -- and potentially, a buy. Before you buy stock in Centrus Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Centrus Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Centrus Energy Stock Plunged Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
16-06-2025
- Business
- Yahoo
Jim Cramer Notes BWX Technologies is Among Stocks 'That Have People Excited'
BWX Technologies, Inc. (NYSE:BWXT) is one of the 18 stocks Jim Cramer recently shared insights on. During the episode, the company was mentioned by the Mad Money host, and here is what he said: 'Then there's the nuclear cohort…. Every day we see that Oklo and that Cameco, that BWXT, someone asked about that… BWX Technologies, Centrus, Talen Energy, NexGen. These are the ones that have people excited. They can't put them down. That's because the data centers use so much electricity that nuclear power's coming back. In reality, though, there will be no nuclear reactors for at least five years. The stocks that people want are not stocks that I find investible. An aerial view of a nuclear plant, its domes casting a unique shadow. BWX Technologies (NYSE:BWXT) produces specialized nuclear components, fuels, and equipment for naval, commercial, and medical use, and also offers engineering, inspection, and lifecycle services tailored to nuclear applications. While we acknowledge the potential of BWX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Why Centrus Energy Stock Raced Nearly 9% Higher Today
A key business partner of the company is set to build and run an important project for the U.S. military. Centrus is a key supplier of that peer. 10 stocks we like better than Centrus Energy › Wednesday was a good day to be an investor in either nuclear stocks or the suppliers that provide fuel for them. Happily for Centrus Energy (NYSEMKT: LEU), it covers both these bases. On the back of news that a peer has secured an important new government contract, investors piled into Centrus stock and pushed it to a nearly 9% gain in price on Wednesday. That was a far better performance than that of the S&P 500 index, which sagged by 0.3%. The peer in question was ambitious next-generation nuclear energy start-up Oklo. It looks as if the company will be moving out of the start-up stage before long, as it secured what's called a notice of intent to award (NOITA) for an Air Force base in Alaska. Under the terms of the deal, Oklo will construct and run a nuclear generating plant supplying heat and electricity to Eielson Air Force base. Centrus and Oklo are business partners, as they have a memorandum of understanding (MOU) for the former to supply high-assay low-enriched uranium (HALEU; a type of fuel) for Oklo's Aurora reactors. The Eielson project, therefore, is sure to include Centrus. While Oklo is a more direct beneficiary of the project, it is sure to produce reliable long-term work at the base. Given that, it will certainly provide Centrus with years of steady and reliable business. On top of that, the Air Force project also reinforces the viability of cutting-edge nuclear projects and the companies behind them -- and both Centrus and Oklo are prominent members of this club. Before you buy stock in Centrus Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Centrus Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Centrus Energy Stock Raced Nearly 9% Higher Today was originally published by The Motley Fool Sign in to access your portfolio
