Zacks Investment Research Downgrades Callon Petroleum (NYSE:CPE) to Hold

Callon Petroleum (NYSE:CPEGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday, Zacks.com reports. They currently have a $58.00 price target on the oil and natural gas company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 7.53% from the stock’s current price.

According to Zacks, “Callon’s strong presence in the Permian Basin, which is among the most prolific oil plays in the United States, is praiseworthy. The company recently acquired leasehold interests and associated upstream assets of Primexx Energy Partners. With the acquisition, it has successfully expanded its Permian Basin operations. Callon expects the acquisition to boost cash flows in the coming quarters significantly, which will strengthen its balance sheet. Notably, the company expects to generate free cashflows of more than $500 million in 2022. However, the upstream energy player’s debt-laden balance sheet is concerning. It had a total debt to capitalization of 59.1%, significantly higher than the industry average. Also, the increasing expenses will likely hurt its profit margin in the coming quarters. As such, the stock warrants a cautious stance.”

Several other research firms also recently weighed in on CPE. StockNews.com assumed coverage on Callon Petroleum in a research note on Thursday, March 31st. They issued a “hold” rating on the stock. Truist Financial upped their price target on Callon Petroleum from $100.00 to $109.00 in a research note on Thursday, April 21st. Roth Capital upgraded Callon Petroleum from a “neutral” rating to a “buy” rating and set a $80.00 price target on the stock in a research note on Monday, April 18th. Morgan Stanley upped their price target on Callon Petroleum from $63.00 to $79.00 and gave the stock an “equal weight” rating in a research note on Friday. Finally, JPMorgan Chase & Co. downgraded Callon Petroleum from a “neutral” rating to an “underweight” rating and set a $62.00 price target on the stock. in a research note on Friday, January 21st. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $72.78.

NYSE:CPE traded down $0.33 during mid-day trading on Tuesday, reaching $53.94. 16,611 shares of the company’s stock traded hands, compared to its average volume of 2,003,818. Callon Petroleum has a 12-month low of $25.32 and a 12-month high of $66.48. The company has a 50 day moving average price of $58.12 and a 200-day moving average price of $54.87. The company has a debt-to-equity ratio of 1.44, a current ratio of 0.34 and a quick ratio of 0.34. The firm has a market capitalization of $3.32 billion, a price-to-earnings ratio of 8.58 and a beta of 2.81.

Callon Petroleum (NYSE:CPEGet Rating) last posted its earnings results on Wednesday, February 23rd. The oil and natural gas company reported $2.66 earnings per share for the quarter, missing analysts’ consensus estimates of $2.81 by ($0.15). Callon Petroleum had a return on equity of 40.46% and a net margin of 17.86%. The firm had revenue of $692.19 million for the quarter, compared to analysts’ expectations of $542.75 million. During the same quarter last year, the company posted $1.00 EPS. As a group, analysts forecast that Callon Petroleum will post 15.19 EPS for the current year.

In other news, major shareholder Holdings L.P. Blackstone III sold 200,000 shares of the company’s stock in a transaction on Monday, April 18th. The stock was sold at an average price of $62.00, for a total value of $12,400,000.00. Following the completion of the sale, the insider now directly owns 5,935,002 shares in the company, valued at approximately $367,970,124. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Primexx Energy Partners, Ltd sold 5,225 shares of the company’s stock in a transaction on Friday, March 4th. The stock was sold at an average price of $60.02, for a total value of $313,604.50. The disclosure for this sale can be found here. Insiders have sold a total of 1,232,939 shares of company stock worth $75,744,597 over the last three months. Insiders own 2.10% of the company’s stock.

Hedge funds have recently modified their holdings of the business. Kimmeridge Energy Management Company LLC grew its position in shares of Callon Petroleum by 89.1% during the fourth quarter. Kimmeridge Energy Management Company LLC now owns 11,700,780 shares of the oil and natural gas company’s stock valued at $552,862,000 after purchasing an additional 5,512,623 shares in the last quarter. BlackRock Inc. lifted its holdings in shares of Callon Petroleum by 21.8% in the 4th quarter. BlackRock Inc. now owns 7,390,749 shares of the oil and natural gas company’s stock valued at $349,212,000 after acquiring an additional 1,321,366 shares during the last quarter. Lion Point Capital LP lifted its holdings in shares of Callon Petroleum by 311.0% in the 4th quarter. Lion Point Capital LP now owns 527,538 shares of the oil and natural gas company’s stock valued at $24,926,000 after acquiring an additional 777,538 shares during the last quarter. First Trust Advisors LP lifted its holdings in shares of Callon Petroleum by 146.1% in the 4th quarter. First Trust Advisors LP now owns 455,151 shares of the oil and natural gas company’s stock valued at $21,506,000 after acquiring an additional 270,193 shares during the last quarter. Finally, Peregrine Capital Management LLC bought a new position in shares of Callon Petroleum in the 4th quarter valued at about $10,786,000. Institutional investors and hedge funds own 90.38% of the company’s stock.

Callon Petroleum Company Profile (Get Rating)

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, exploration, and development of oil and natural gas properties in Permian Basin in West Texas. As of December 31, 2021, its estimated net proved reserves totaled approximately 484.6 million barrel of oil equivalent, including 290.3 MMBbls oil, 577.3 Bcf of natural gas, and 98.1 MMBbls of natural gas liquids.

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