Century Aluminum Company (CENX): What’s the Story?

Century Aluminum Company (CENX) is an interesting player in the Basic Materials space, with a focus on Aluminum. The stock has been active on the tape, currently trading at $13.40, down from yesterday’s close by -1.83%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. Century Aluminum Company (CENX) currently trades with a market capitalization of $1.16 Billion. That value represents a market adjusting for revenues that have been growing by 20.08 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CENX, the company currently has $175.06 Million of cash on the books, which is offset by $7.82 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $40.85 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.29 on a per share basis this quarter. Perhaps, that suggests something about why 98.36% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Century Aluminum Company recorded a 52-week high of $20.68. It is now trading 7.28% off that level. The stock is trading $14.93 its 50-day moving average by 1.53%. The stock carved out a 52-week low down at $8.39.

In recent action, Century Aluminum Company (CENX) has made a move of -9.46% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.32, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 17.10% with $49.33 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CENX.

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