In this article, we discuss the 13 uranium stocks popular on Reddit.
Interest in the use of uranium as an alternative to oil and natural gas in the generation of power, especially in the context of skyrocketing energy prices and a recent global climate summit, has soared in the past few months, driving a rally in the prices of uranium stocks that has been given a further boost by the interest of retail investors in uranium futures. Many uranium firms have registered double-digits share price growth in the past year as the Reddit crowd urges a buying spree, betting that uranium will be used to decarbonize the world along with renewables.
Sprott Physical Uranium Trust Fund (OTC:SRUUF), a Canada-based fund, has been buying up uranium and presently holds 32.6 million pounds of uranium, roughly 76 percent of the sales made last year by the largest uranium firm in the world. According to S&P Global, a market intelligence firm, the uranium market has heated up to the point that uranium firms are proposing to finance a separate fund for physical uranium purchases. The global demand for the radioactive material is set to rise from 180 million pounds to 200 pounds by 2026.
Even as confidence in the ability of nuclear energy to act as a viable alternative to fossil fuels improves, there are still lingering questions about the environmental impact of nuclear fuel and waste that could play a vital role in shaping uranium futures. However, as the world transitions away from oil and gas, the reliability of nuclear power, as opposed to renewable sources like water, wind, or solar, could sway the equation. Paul Goranson, the head of a uranium trade association, said in October this year that a physical uranium fund would push up the prices of the mineral.
Investors who want to ride the rally in uranium prices along with Redditors should check out some of the top uranium stocks to buy now that include Cameco Corporation (NYSE:CCJ), NexGen Energy Ltd. (NYSE:NXE), Denison Mines Corp. (NYSE:DNN), Rio Tinto Group (NYSE:RIO), and BHP Group (NYSE:BHP), among others.
Our Methodology
These were selected based on the hype around the companies on different Reddit forums. The analyst ratings and business fundamentals of each stock are also discussed in a bid to weed out “meme stocks” and provide readers with some informed context for their investment choices. Hedge fund sentiment was included as a classifier as well.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Image by Markus Distelrath from Pixabay
Uranium Stocks Popular on Reddit
13. Paladin Energy Limited (FRA:PUR.F)
Number of Hedge Fund Holders: N/A
Paladin Energy Limited (FRA:PUR.F) develops and operates uranium mines. It owns properties in Australia, Canada, and parts of Africa. One of the premier projects of the firm is the Langer Heinrich mine located in the Namib Desert of Namibia.
Paladin Energy Limited (FRA:PUR.F) has a market cap of $1.5 billion and was founded in 1993. It is headquartered in Australia. Redditors have been pouring into the firm to ride the rally in uranium prices over the past few months.
In June, Paladin Energy Limited (FRA:PUR.F) had announced that it would be selling a 65% stake in the Kayelekera mine to Hylea Metals, another Australian mining firm, in a deal worth around A$5 million.
Just like Sprott Physical Uranium Trust Fund (OTC:SRUUF), Cameco Corporation (NYSE:CCJ), NexGen Energy Ltd. (NYSE:NXE), Denison Mines Corp. (NYSE:DNN), Rio Tinto Group (NYSE:RIO), and BHP Group (NYSE:BHP), Paladin Energy Limited (FRA:PUR.F) is one of the stocks attracting the attention of retail investors.
12. Yellow Cake plc (LSE:YCA.L)
Number of Hedge Fund Holders: N/A
Yellow Cake plc (LSE:YCA.L) is a specialist firm working in the uranium sector. The company has interests in the purchase and holding of uranium oxide concentrates. It has a market cap of $790 million and was founded in 2018.
The 52-week price range of Yellow Cake plc (LSE:YCA.L) stock lies between $1.8 and $5.6. The share price of the firm has jumped 41% in the past twelve months amid a broader rally in the prices of uranium stocks.
Yellow Cake plc (LSE:YCA.L) recently revealed that it had agreed to sell and buy back uranium from NAC Kazatomprom JSC at a net cost of $6.6 million. NAC Kazatomprom JSC is a uranium firm that operates from Central Asia.
11. JSC National Atomic Company Kazatomprom (IOB:KAP.IL)
Number of Hedge Fund Holders: N/A
JSC National Atomic Company Kazatomprom (IOB:KAP.IL) is the largest producer and seller of uranium in the world. It is based in Kazakhstan. Redditors have been piling into the stock in hopes of turning quick profits.
In October, JSC National Atomic Company Kazatomprom (IOB:KAP.IL) announced that it had made a strategic investment worth $50 million Anu Energy OEIC, a fund that allows investors to trade shares in radioactive material with a billion-year-plus half-life.
Mazhit Sharipov, the CEO of the firm, has said that the investment comes amid tightening supply of uranium that will drive benefits for shareholders. JSC National Atomic Company Kazatomprom (IOB:KAP.IL) supplied nearly 23% of the global uranium production last year.
10. Uranium Royalty Corp. (NASDAQ:UROY)
Number of Hedge Fund Holders: N/A
Uranium Royalty Corp. (NASDAQ:UROY) is a pure-play uranium royalty firm. It is based in Canada and has a market cap of $332 million. The firm owns and manages uranium interests spread across the world.
Uranium Royalty Corp. (NASDAQ:UROY) stock has rallied in the past few days after the company announced that it had agreed to purchase a bulk order of uranium from CGN Global Uranium, the largest nuclear operator in China.
On October 20, investment advisory Canaccord raised the price target on Uranium Royalty Corp. (NASDAQ:UROY) stock to C$7.50 from C$7 and kept a Speculative Buy rating. Analyst Katie Lachapelle issued the ratings update.
9. Lightbridge Corporation (NASDAQ:LTBR)
Number of Hedge Fund Holders: 1
Lightbridge Corporation (NASDAQ:LTBR) develops nuclear fuel technology. The stock recently climbed to a 52-week high of $14.60 amid interest from retail investors on Reddit and improved earnings results that saw losses narrow compared to the previous quarter.
In early November, Lightbridge Corporation (NASDAQ:LTBR) announced that it had received a Notice of Allowance from patent authorities in the US regarding PWR, a metallic nuclear fuel assembly designed by the firm for Western-type pressurized water reactors.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Schonfeld Strategic Advisors is a leading shareholder in Lightbridge Corporation (NASDAQ:LTBR) with 15,100 shares worth more than $73,000.
8. Ur-Energy Inc. (NYSE:URG)
Number of Hedge Fund Holders: 6
Ur-Energy Inc. (NYSE:URG) explores and develops uranium mineral properties. The shares have climbed more than 122% in the past twelve months as prices soared due to the increase in demand with governments realizing the energy potential of uranium in a carbon-free world.
Alliance Global Partners analyst Jake Sekelsky recently reiterated a Buy rating on Ur-Energy Inc. (NYSE:URG) stock and raised the price target to $2.50 from $2.20, noting the firm was well-positioned to become a domestic producer of uranium.
At the end of the third quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $14 million in Ur-Energy Inc. (NYSE:URG), compared to 4 in the preceding quarter worth $8 million.
7. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 12
Uranium Energy Corp. (NYSE:UEC) extracts and processes uranium. Some of the projects that the firm has interests in include the Palangana mine, the Slick Rock project, the Reno Creek project, and the Diabase project, among others.
On November 9, Uranium Energy Corp. (NYSE:UEC) stock jumped over 3% after the firm announced that it would be acquiring Uranium One Americas, a uranium mining firm, in a deal worth $131 million.
At the end of the third quarter of 2021,12 hedge funds in the database of Insider Monkey held stakes worth $10 million in Uranium Energy Corp. (NYSE:UEC), compared to 14 in the previous quarter worth $9 million.
6. Energy Fuels Inc. (NYSE:UUUU)
Number of Hedge Fund Holders: 13
Energy Fuels Inc. (NYSE:UUUU) engages in the uranium recovery business. The firm posted earnings for the third quarter in early November, reporting a revenue of $0.72 million, up 46% year-on-year and beating estimates by $0.02 million.
Noble Capital analyst Michael Heim has an Outperform rating on Energy Fuels Inc. (NYSE:UUUU) stock with a price target of $9. The analyst expects the firm to benefit from the increase in uranium prices as global demand goes up without a significant increase in supply.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Energy Fuels Inc. (NYSE:UUUU) with 388,825 shares worth more than $2.7 million.
In addition to Cameco Corporation (NYSE:CCJ), NexGen Energy Ltd. (NYSE:NXE), Denison Mines Corp. (NYSE:DNN), Rio Tinto Group (NYSE:RIO), and BHP Group (NYSE:BHP), Energy Fuels Inc. (NYSE:UUUU) is one of the stocks on the radar of the Reddit crowd.
5. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 14
Denison Mines Corp. (NYSE:DNN) is a uranium exploration and development firm. In late September, the company announced that it would be advancing the Wheeler River, the largest undeveloped uranium project in the Athabasca Basin, to the feasibility study phase.
Denison Mines Corp. (NYSE:DNN) recently posted earnings for the third quarter, reporting earnings per share of C$0.04, beating estimates by $0.05. The revenue over the period was C$9.5 million, up 248% year-on-year.
At the end of the third quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $41 million in Denison Mines Corp. (NYSE:DNN), up from 13 in the preceding quarter worth $19 million.
4. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 18
BHP Group (NYSE:BHP) is a natural resources firm that operates from Australia. The company has interests in the mining of several minerals, including uranium. In the last fiscal year, the firm produced nearly 3.3 million metric tons of uranium.
Bank of America analyst James Redfern has a Neutral rating on BHP Group (NYSE:BHP) stock with a price target of A$39. In an investor note in September, the analyst noted that the stock offered an attractive dividend yield and seemed fairly valued.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE:BHP) with 8.3 million shares worth more than $447 million.
In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group (NYSE:BHP) was one of them. Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
3. NexGen Energy Ltd. (NYSE:NXE)
Number of Hedge Fund Holders: 19
NexGen Energy Ltd. (NYSE:NXE) is a Canadian firm that develops uranium properties. The stock has returned more than 58% to investors year-to-date amid interest from the Redditor crowd and the increase in prices of uranium.
NexGen Energy Ltd. (NYSE:NXE) has a market cap of more than $2 billion and was founded in 2011. One of the premier projects of the firm is the Rook I that consists of 32 contiguous mineral claims on 35,065 hectares in the Athabasca Basin.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Falcon Edge Capital is a leading shareholder in NexGen Energy Ltd. (NYSE:NXE) with 3.8 million shares worth more than $18 million.
2. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 20
Rio Tinto Group (NYSE: RIO) is a diversified metals and mining firm. The company is the largest continually operating uranium oxide producer in Australia. The stock has returned more than 6% to investors in the past month.
Morgan Stanley analyst Alain Gabriel recently upgraded Rio Tinto Group (NYSE:RIO) stock to Overweight from Equal Weight and raised the price target to A$110.50 from A$101, backing the shares to climb higher as housing demand improved and the Chinese economy recovered.
At the end of the third quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Rio Tinto Group (NYSE:RIO), compared to 21 in the preceding quarter worth $1.4 billion.
1. Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 35
Cameco Corporation (NYSE:CCJ) produces and sells uranium. In earnings results for the third quarter, posted in late October, the company reported a revenue of $361 million, smashing analyst predictions by $21 million.
In early November, Bank of America analyst Lawson Winder upgraded Cameco Corporation (NYSE:CCJ) stock to Buy from Neutral and raised the price target to C$40 from C$36.25, noting that the firm could benefit from the role of nuclear energy in decreasing reliance on fossil fuels.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Kopernik Global Investors is a leading shareholder in Cameco Corporation (NYSE:CCJ) with 8.9 million shares worth more than $194 million.
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Disclosure. None. 13 Uranium Stocks Popular on Reddit is originally published on Insider Monkey.
