Denison Mines Corp (NYSEAMERICAN: DNN) is screaming for the top in the market this morning, and for good reason. The company announced that it will be added to the S&P/TSX Composite index. Here’s what’s going on:
Skip to What You Want to Read
- Denison Mines Announces Inclusion News
- Management Commentary
- What Analysts Think About DNN Stock
- Final Thoughts
Denison Mines Announces Inclusion News
In the press release, Denison Mines announced that its shares would be added to the S&P/TSX Composite Index. According to the announcement, the addition will take place prior to the open of trading on Monday, March, 22, 2021.
This is overwhelmingly exciting news, the S&P/TSX Composite Index is similar to the S&P 500 index here in the United States. As the S&P 500 is used as a benchmark in the United States, the S&P/TSX Composite Index is the flagship benchmark of the Canadian market.
As such, upon inclusion, DNN stock could soar. After all, every ETF and index fund with the S&P/TSX Composite Index as its underlying benchmark will need to buy shares of the stock as soon as it goes live on the index.
This ultimately means that demand for DNN is likely to skyrocket next Monday, which could send the stock even further into the green.
In a statement, David Cates, President and CEO at DNN, had the following to offer:
Inclusion in the S&P/TSX Composite Index is a notable achievement and comes at a time when investor interest in nuclear energy and the global energy transition has increased significantly.
Our Company is well positioned to support the clean-energy transition through the future development of our flagship Wheeler River uranium project in the Athabasca Basin region of northern Saskatchewan. Wheeler River’s Phoenix deposit has the potential to compete with the lowest cost uranium mines and development projects, while being designed as one of the most environmentally sustainable mining operations in the world – owing largely to our planned application of the In-Situ Recovery mining method and the expected absence of conventional tailings generation.
On behalf of the Company’s Board of Directors and employees, we are honoured to be included in Canada’s benchmark equity index and welcome the opportunity to increase our Company’s exposure to the investment community as a further means to provide value to our shareholders.
What Analysts Think About DNN Stock
According to TipRanks, analysts have a pretty mixed opinion of DNN stock. At the moment, there are four analysts covering the stock, three of which rate it a Hold and one who rates it a Buy.
In terms of price targets, they range from $0.92 per share to $1.24 per share with a median price target of $1.03, representing a potential downside. Nonetheless, analyst coverage is often outdated, and in this particular case, there’s no way analysts could have accounted for inclusion in the S&P/TSX Composite Index quite yet. As such, price targets are likely to be increased ahead.
All in all, Denison Mines is an exciting potential opportunity. The company’s inclusion in the S&P/TSX Composite Index sets the stage for a tremendous rise in demand for the company’s stock, which could make today’s gains look like nothing more than a drop in the bucket a week from now. As such, DNN stock is one to watch closely.