Uranium stocks after the selloff 📉 Uranium Energy Corp. tumbles 50% from its highs

The largest uranium company in the United States, Uranium Energy Corp. (UEC.US), has corrected by around 40% from its highs. Recently, H.C. Wainwright reiterated its Buy rating on Uranium Energy Corp. and maintained a $26.75 price target, despite the company reporting a weaker quarterly net result and no revenue. The most important takeaway from the report was not the loss itself, but UEC's uranium inventory strategy. The company chose not to sell U3O8 into the spot market despite uranium trading near $86 per pound, suggesting management expects more favorable pricing or long-term contracting opportunities in the coming quarters. Spot uranium prices currently hover around $85 per pound after retreating from approximately $97 seen at the beginning of the year, although the longer-term trend remains upward.

• The company reported a quarterly net loss of $52.3 million, or $0.11 per share, compared with a $30.2 million loss in the previous quarter. The results highlight the cost pressures typically faced by a producer during the ramp-up and scaling phase of production.
• Production at Christensen Ranch reached 146,550 pounds of U3O8, while the start of operations at Burke Hollow represents an important milestone, signaling UEC's transition from being viewed primarily as a leveraged uranium price play toward becoming a genuine uranium producer.
• UEC currently holds approximately 1.5 million pounds of U3O8 in inventory. At a spot price of $86 per pound, those holdings have a theoretical market value of roughly $129 million, providing investors with both a financial buffer and additional leverage to any future increase in uranium prices.
• The market punished the stock for missing revenue expectations, posting a larger loss, and experiencing production delays, sending shares down 24% over the past week to $10.65. Despite that decline, the stock remains approximately 72% higher than a year ago, suggesting that part of the recent weakness reflects profit-taking following a strong rally.
• H.C. Wainwright also emphasized UEC's strong liquidity position and cash-rich balance sheet, noting that the company holds more cash than debt, reducing financial risk while production continues to ramp up.
• The key investment question remains whether UEC can successfully lower its production cost per pound as output increases. If unit costs begin to decline, today's losses could increasingly be viewed as temporary rather than structural.
• The main disappointment was earnings per share of -$0.11 versus consensus expectations of -$0.03, while investors had also been expecting approximately $12.1 million in revenue. This largely explains why the positive analyst recommendation failed to prevent the recent selloff.
• For the broader uranium sector, the message remains mixed. Spot uranium prices continue to hold in the mid-$80 per pound range, but weaker sentiment toward commodity equities and lower financial investor participation are currently weighing on uranium stocks.
• The bullish case for UEC continues to rest on three pillars: sustained high uranium prices, growing domestic uranium production in the United States, and the ability to monetize its inventory or secure long-term contracts at more attractive prices.
• The downside risk is straightforward. If production delays persist, costs remain elevated, and the company continues generating little or no revenue, investors may increasingly value UEC as a leveraged uranium price option rather than as a fully established producer.

UEC.US shares (D1 interval)

UEC shares are currently trading well below the 200-day EMA (red line), a level that has frequently served as a long-term accumulation zone over recent years.

Source: xStation5

Cameco increases its stake in Cigar Lake

Cameco has completed the acquisition of an additional ownership interest in the Cigar Lake uranium mine from TEPCO Resources.

• Following the transaction, Cameco's ownership stake increased by 2.871 percentage points to 57.418%, while Orano Canada's interest rose to 42.582%.
• The transaction is significant for the uranium sector because Cigar Lake is one of the world's largest and highest-grade uranium mines.
• A larger ownership stake gives Cameco greater exposure to future uranium production and potentially stronger cash flows should uranium prices remain elevated.
• From an investor's perspective, the acquisition demonstrates that leading uranium producers continue to strengthen their control over high-quality producing assets rather than relying on purchases in the spot market.

CCJ.US shares (D1 interval)

Cameco shares are currently trading at roughly a 10% discount to their 200-day EMA (red line), leaving the key technical support zone around $100-103 per share.

Source: xStation5

Centrus Energy to join the S&P SmallCap 600

Centrus Energy will join the S&P SmallCap 600 index on July 14, a move that could generate additional technical demand from passive investment funds tracking the benchmark.

The company plays an important role in the U.S. nuclear fuel supply chain as a supplier of enriched uranium.

Centrus is particularly important for the next generation of nuclear reactors because it is developing HALEU (High-Assay Low-Enriched Uranium), the specialized fuel required by many advanced reactor designs.

While index inclusion does not immediately change the company's fundamentals, it may improve the stock's visibility among institutional investors and increase passive fund ownership.

For the uranium sector, the addition represents another sign that capital markets are increasingly recognizing the strategic importance of the U.S. nuclear fuel supply chain.

Centrus (LEU.US) shares (D1 interval)

Centrus shares have declined by approximately 65% from their highs and are currently trading around 20% below their 200-day EMA (red line) on the daily chart.

Source: xStation5