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Are Paladin Energy shares a buy after crashing 14% this week?

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A man wearing a blue jumper and a hat looks at his laptop with a distressed and fearful look on his face.

Paladin Energy Ltd (ASX: PDN) shares have slipped further into the red on Thursday.

At the time of writing, the shares are down 3.72% to $10.76 a piece.

The latest tumble means the uranium producer’s share price has shed 14% of its value this week alone.

There is still some good news for investors, though. After a strong rally through 2025 and into early 2026, Paladin Energy shares are still 7% higher year to date and 65% higher than last year.

The uranium stock has significantly outpaced the S&P/ASX 200 Index (ASX: XJO), which has fallen just over 1% year to date but is 4% higher over the past year.

Why have Paladin Energy shares crashed this week?

The shares plunged 12% on Wednesday alone after the company posted its latest results for the nine months to 31st March.

The uranium producer posted a significant turnaround in earnings, including a US$34.4 million gross profit, up from a US$21.7 million deficit in the prior corresponding period, and a US$1.7 million NPAT, up from a US$30.1 million loss previously.

Revenue also climbed to US$209.1 million, from US$138.2 million year on year.

But it looks like investors were spooked by the company’s cash flow position. Operating cash flow showed an outflow of US$36.4 million, compared with an inflow of US$14 million in the prior corresponding period.

Paladin is currently spending heavily to support its Patterson Lake South (PLS) project in Canada while continuing the ramp-up of operations at its Langer Heinrich Mine in Namibia. It looks like investors are wary about the company’s rising spending commitments.

Is the latest sell-off a buying opportunity? Or a signal to sell up?

It looks like analysts are relatively divided at the moment.

Market Index data shows brokers have a hold rating on the uranium stock, but they tip a potential 17% upside to $12.94 over the next 12 months.

TradingView data is a little more positive. Out of 14 analysts, six have a buy or strong buy rating on the stock, and another six have a hold rating.

The average $13.06 target price implies a potential 21% upside ahead. But some are tipping the shares could fly 61% higher to as high as $17.27 each.

I’d sit tight for now, but I wouldn’t be surprised if Paladin Energy shares start to peak again in the near future, once investors have digested its latest results.

The post Are Paladin Energy shares a buy after crashing 14% this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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