T. Rowe Price Builds 15.5% Stake in Uranium Energy as Stock Tests Key Support

T. Rowe Price acquires 15.5% stake in Uranium Energy as shares slide toward 200-day moving average; company’s unhedged spot sales strategy and strong balance sheet draw analyst support.

The uranium miner drawing big institutional money is the same one watching its shares slide toward a closely watched technical level. T. Rowe Price Associates has disclosed a 15.5% holding in Uranium Energy, equivalent to roughly 76 million shares, according to a filing with the SEC this week. The stake arrives just as the stock has shed nearly 9% of its value over the past seven days, closing Friday at EUR 11.77 — a test of the 200-day moving average.

Yet even as the share price pulls back, the asset manager’s vote of confidence signals a belief that the company’s unhedged sales strategy will pay off. Uranium Energy deliberately avoids locking in long-term prices, selling its production directly into the spot market. In a rising uranium environment, that approach magnifies margins; when the market dips, the downside protection of traditional hedging is absent. The company proved the upside in its most recent quarter, unloading 200,000 pounds of U?O? at an average of $101 per pound — well above the prevailing spot price of $80.76. The sale generated $20.2 million in revenue and a $10.0 million gross profit.

Adding to the bullish case from analysts, H.C. Wainwright’s Heiko Ihle maintains a $26.75 price target, pointing to the company’s robust balance sheet. Uranium Energy held $486 million in cash at last count and carries no debt, giving it ample runway to ramp production without leaning on external capital. Roth Capital, for its part, lifted its target to $17 earlier this year. The analytical support contrasts sharply with near-term market sentiment, where profit-taking has been the dominant force since the stock hit a January high of EUR 16.89.

Operationally, the Texas portfolio is firing on more cylinders. The Burke Hollow in-situ recovery project has received regulatory clearance and started production, while Christensen Ranch continues to add header houses. The combined licensed capacity points toward an annual run rate of roughly 12 million pounds of uranium, with the Ludeman deposit expected to come online in 2027. Uranium Energy’s vertical integration push is also gathering pace. The company is evaluating sites in Wyoming and Texas for a new conversion facility — the U.S. Uranium Refining & Conversion Corp. — designed to process up to 10,000 tonnes of uranium as UF? per year, a step that addresses a bottleneck in the domestic fuel cycle. The U.S. Nuclear Regulatory Commission has already assigned a docket number, and Uranium Energy is working with Fluor on engineering and design. Washington’s stated goal of tripling nuclear capacity by 2050 provides a clear political tailwind, but site selection, licensing, and financing remain open questions.

On the options front, Friday saw roughly 33,000 contracts change hands, with calls outnumbering puts by a two-to-one margin. June call activity was particularly brisk, suggesting some traders are betting on a near-term bounce. The stock’s intraday action on Friday was mixed: at one point it traded at EUR 12.01, down 4.46%, before settling at the lower weekly close.

Institutional interest beyond T. Rowe Price has been more selective. At the end of the fourth quarter, 35 hedge funds held positions in Uranium Energy, down from 41 in the prior quarter. The decline in hedge fund exposure mirrors the stock’s retreat from its highs, even as the long-term narrative around U.S. nuclear fuel security remains intact. For now, all eyes are on the 200-day moving average. If that support holds, the argument for a rebound gains weight. If it breaks, the selling could deepen before the next buying opportunity arrives.