The stock of Century Aluminum Co (NASDAQ: CENX) has increased by 10.73 when compared to last closing price of 16.59. Despite this, the company has experienced a 0.63% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-03-02 that Trump’s tariffs on aluminum are set to transform the earnings power of Century Aluminum, causing a potential tripling of pre-tax profits. After the company’s transformation, I believe it is worth $91 per share given the analog of BlueScope Steel. I recommend investors buy CENX stock, given its discount to estimated fair value.
Is It Worth Investing in Century Aluminum Co (NASDAQ: CENX) Right Now?
Century Aluminum Co (NASDAQ: CENX) has a higher price-to-earnings ratio of 5.65x compared to its average ratio, The 36-month beta value for CENX is at 2.61. Analysts have varying views on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 0 as “hold,” and 0 as “sell.”
The public float for CENX is 50.82M, and currently, shorts hold a 9.46% of that float. The average trading volume for CENX on March 11, 2025 was 1.58M shares.
CENX’s Market Performance
CENX’s stock has seen a 0.63% increase for the week, with a -1.69% drop in the past month and a -23.18% fall in the past quarter. The volatility ratio for the week is 8.89%, and the volatility levels for the past 30 days are at 8.16% for Century Aluminum Co The simple moving average for the last 20 days is -5.22% for CENX stock, with a simple moving average of 3.71% for the last 200 days.
Analysts’ Opinion of CENX
Many brokerage firms have already submitted their reports for CENX stocks, with BMO Capital Markets repeating the rating for CENX by listing it as a “Outperform.” The predicted price for CENX in the upcoming period, according to BMO Capital Markets is $22 based on the research report published on February 24, 2025 of the current year 2025.
Wolfe Research, on the other hand, stated in their research note that they expect to see CENX reach a price target of $27. The rating they have provided for CENX stocks is “Outperform” according to the report published on December 03rd, 2024.
B. Riley Securities gave a rating of “Buy” to CENX, setting the target price at $14 in the report published on January 09th of the previous year.
CENX Trading at -3.88% from the 50-Day Moving Average
After a stumble in the market that brought CENX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -27.63% of loss for the given period.
Volatility was left at 8.16%, however, over the last 30 days, the volatility rate increased by 8.89%, as shares sank -12.14% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.76% lower at present.
During the last 5 trading sessions, CENX fell by -0.88%, which changed the moving average for the period of 200-days by -4.54% in comparison to the 20-day moving average, which settled at $19.37. In addition, Century Aluminum Co saw 0.85% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CENX starting from Gary Jesse E, who sale 50,000 shares at the price of $18.48 back on Dec 27 ’24. After this action, Gary Jesse E now owns 753 shares of Century Aluminum Co, valued at $924,000 using the latest closing price.
Gary Jesse E, the President and CEO of Century Aluminum Co, sale 29,243 shares at $18.97 during a trade that took place back on Dec 26 ’24, which means that Gary Jesse E is holding 50,753 shares at $554,740 based on the most recent closing price.
Stock Fundamentals for CENX
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.08 for the gross margin
The net margin for Century Aluminum Co stands at 0.15. The total capital return value is set at 0.08. Equity return is now at value 64.15, with 17.79 for asset returns.
Based on Century Aluminum Co (CENX), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at -0.05. The debt to equity ratio resting at 0.73. The interest coverage ratio of the stock is 2.81.
Currently, EBITDA for the company is 448.7 million with net debt to EBITDA at 2.45. When we switch over and look at the enterprise to sales, we see a ratio of 0.97. The receivables turnover for the company is 15.19for trailing twelve months and the total asset turnover is 1.14. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.73.
Conclusion
In conclusion, Century Aluminum Co (CENX) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
