How Denison Mines Corp. (DNN) Works From A Technical Perspective

Denison Mines Corp. (AMEX:DNN) finished Wednesday with an addition of $0.09 to close at $1.71, an upside of 5.56 percent. An average of 17,546,740 shares of common stock have been traded in the last five days. There was a gain of $0.3600 in the past week. The last 20 days have seen an average of 19,257,760 shares traded, while the 50-day average volume stands at 15,971,004.

DNN stock has increased by 6.21% in the last month. The company shares reached their 1-month lowest point of $1.3000 on 09/24/21. With the stock rallying to its 52-week high on 02/17/21, shares of the company touched a low of $0.30 and a high of $1.80 in 52 weeks. In spite of this, the price is down -5.26% from the 52-week high.


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Valuation Metrics

Denison Mines Corp. (DNN) has a trailing price-to-earnings (P/E) ratio of 22.80 for the broader industry and 19.70 for the sector. The stock’s beta is 2.00. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 125.66, the price-to-book (PB) ratio at 4.89.

The quick ratio of Denison Mines Corp. for the three months ended June 29 was 4.90, and the current ratio was 5.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 24.50% against a 5-year average of 7.3%. Denison Mines Corp.’s EBITDA margin for the year ending June 29 is -96.57%. Its gross profit as reported stood at $2.86 million compared to revenue of $10.77 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Denison Mines Corp.’s return on assets was -5.10%, compared to -10.2% over the last five years. In the past year, the return on investment has been -5.30%, and the 5-year average is -13.4%. Meanwhile, the return on equity (ROE) for the past 12 months has been -6.90% and the 5-year average holds at -13.3%. For the broader industry, ROE averaged 6.70 over the past year.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Denison Mines Corp. (DNN) price momentum. RSI 9-day as of the close on 13 October was 68.71%, suggesting the stock is Neutral, with historical volatility in this time frame at 86.99%.

As of today, DNN’s price is $1.5060 +26.67% or $0.3600 from its 5-day moving average. DNN is currently trading -3.93% lower than its 20-day SMA and +47.41% higher than its 100-day SMA. However, the stock’s current price level is +58.33% above the SMA50 and +137.73% above the SMA200.

The stochastic %K and %D were 76.20% and 56.82%, respectively, and the average true range (ATR) was 0.1421. With the 14-day stochastic at 85.42% and the average true range at 0.1337, the RSI (14) stands at 64.00%. The stock has reached 0.1111 on the 9-day MACD Oscillator while the 14-day reading was at 0.1410.

Analyst Ratings

Credit Suisse downgraded Denison Mines Corp. (AMEX: DNN) to a an Underperform rating in its most recent analyst report. Previously, the stock was rated as a a Neutral.The consensus rating for Denison Mines Corp. (DNN) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell DNN, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 4 others rate it as a “buy”.

What is DNN’s price target for the next 12 months?

Analysts predict a range of price targets between $1.87 and $3.17, with a median target of $1.98. Taking a look at these predictions, the average price target given by analysts for Denison Mines Corp. (DNN) stock is $2.19.

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