Why Uranium Energy Stock Zoomed 8% Higher on Friday
Key Points
A secondary share issue by the company was quite successful.
It announced the issue's underwriter had fully exercised its option to buy additional stock.
- 10 stocks we like better than Uranium Energy ›
Uranium Energy (NYSEMKT: UEC), a miner and processor of the element in its name, did as well as it could have expected in a recent round of capital raising. Investors rewarded the company on Friday by pushing its stock up by more than 8% in a trading session where the S&P 500 index went in the opposite direction with a 2.7% decline.
A powerful trend
Uranium is the fuel traditionally used in nuclear power plants, which have seen quite the renaissance in the U.S. lately. Uranium Energy (the company) is making hay while the sun shines by floating a secondary issue of its common stock.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
After market hours, the company announced the issue's underwriter (white-shoe investment bank Goldman Sachs) fully exercised its option to purchase additional shares in the offering. Following this, the issue closed.
To put the key numbers on the flotation, Uranium Energy sold 15.5 million of its common shares at a price of $13.15 apiece. Goldman Sachs pulled the lever on its full allotment of nearly 2.33 million shares. The latter sale brought in gross proceeds of almost $30.6 million for the company.
Big build-out
Uranium Energy said it will use the funds it reaped to speed up the development of a state-of-the-art refining and conversion facility for its favorite substance, which feels like a sensible and clever move given the emergence of the nuclear industry. The company added that it will also devote some monies to "general corporate and working capital purposes."
Should you invest $1,000 in Uranium Energy right now?
Before you buy stock in Uranium Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uranium Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $663,905!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,180,428!*
Now, it’s worth noting Stock Advisor’s total average return is 1,091% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 7, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
Recommended Articles
