In this article, we discuss the 13 uranium stocks popular on Reddit. If you want to skip our detailed analysis of these stocks, go directly to the 5 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.
13 Uranium Stocks Popular on Reddit
Image by Markus Distelrath from Pixabay
Uranium Stocks Popular on Reddit13. 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.
Click to continue reading and see 5 Uranium Stocks Popular on Reddit.
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Disclosure. None. 13 Uranium Stocks Popular on Reddit is originally published on Insider Monkey.
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