Is UEC stock a buy as uranium spot prices hit 9-year high?

Highlights

  • Uranium Energy Corp (NYSEAMERICAN:UEC, UEC:US) stocks appear to be attracting quite a bit of attention from investors.
  • UEC stock surged by nearly 14 per cent on Wednesday, September 15, closing at a price of US$ 3.69.
  • On Wednesday, Uranium Energy also recorded a fresh 52-week high of US$ 3.71.

Uranium Energy Corp (NYSEAMERICAN:UEC, UEC:US) stocks appear to be attracting quite a bit of attention from investors in the US as well as Canada.

UEC stock surged by nearly 14 per cent on Wednesday, September 15, closing at a price of US$ 3.69. On Thursday, the scrip noted a marginal dip at opening bell.

While there has been no specific corporate update posted recently by the company, its recent stock price surge could have been triggered by the uranium spot price movement.

This month’s uranium spot prices reportedly shot up to a nine-year high on Wednesday as the Sprott Physical Uranium Trust (TSX:U.UN) shared its plans buy more uranium in the coming months.

Also read: Is PyroGenesis (TSX:PYR) stock a buy after bagging $6M deal?

Sprott Physical said on Monday that it has amended an equity sales program to raise proceeds for the purchase of up to US$ 1 billion in additional units of uranium in Canada.

Is UEC stock a buy as uranium spot prices hit 9-year high?

As per the S&P Global Platts’ assessment, value of spot U3O8 stood at US$ 48/lb on Thursday (1PM EST), which was its highest price since September 2012. It was also up by nearly 12 per cent since Monday, September 13.

Notably, Canadian investment management company Sprott Inc (TSX:SII) disclosed in August that it has an ownership of 435,575 shares in Uranium Energy, where the valuation of its total holdings stood at about US$ 1.159 million as of June 30, 2021.

 

Uranium Energy Corp (NYSEAMERICAN:UEC, UEC:US) stock performance

Stocks of Uranium Energy Corp surged by as much as 190 per cent in the last one year. This year, the uranium stock has rocketed by nearly 100 per cent so far.

Is UEC stock a buy as uranium spot prices hit 9-year high?

After the Sprott Physical Uranium Trust posted its updated equity sales program plan on Monday, UEC scrip has noted a growth of nearly 30 per cent week-to-date (WTD).

On Wednesday, Uranium Energy also recorded a fresh 52-week high of US$ 3.71.

Also read: 3 best upcoming IPOs you cannot miss!

 

What is in store for Uranium Energy Corp?

Uranium seems to be garnering an increased demand from sources other than Sprott, especially investors and businesses trying to get their hands on the material amid a supposed supply shortage.

Amid this rising demand, uranium mining-focused companies such as Uranium Energy could see growth going forward.

 

 

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