Home Sectors Energy Buy or Sell: Callon Petroleum Company (NYSE: CPE)

Buy or Sell: Callon Petroleum Company (NYSE: CPE)

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Callon Petroleum Company is part of the oil and gas exploration and production industry and energy sector. The company CEO is Joseph C. Gatto. Callon Petroleum Co is engaged in the exploration, development, acquisition, and production of oil and natural gas properties. The company generates its revenue from the sale of Oil.

Previous Intraday Trading Performance:

The CPE stock showed a previous change of 3.49% with an open at 6.38 and a close of 6.53. It reached an intraday high of 6.71 and a low of 6.35.

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Liquidity:

The stock has a market cap of $1.5b with 227.9m shares outstanding, of which the float is 223.9m shares. Trading volume reached 4,975,712 shares compared to its average volume of 6,844,290 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Callon Petroleum Company shares returned -2.10% and in the past 30 trading days it returned -21.61%. Over three months, it changed -14.64%. In one year it has changed -36.54% and within that year its 52-week high was 13.09 and its 52-week low was 5.57. CPE stock is 17.24% above its 52 Week Low.

Our calculations show a 200 day moving average of 8.90 and a 50 day moving average of 7.57. Currently CPE stock is trading -26.65% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Short-Sellers’ Favorites: Highest Short Interest Stocks May 2019

Earnings:

The last annual fiscal EPS for the company was reported at 1.36 that ended on 31st of December 2018, which according to the previous close, that is a PE of 4.80. Based on 15 analyst estimates, the consensus EPS for the next quarter is 0.19. The TTM EPS is 0.81, which comes to a TTM PE of 8.06.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/06/2019): -0.09
4thQtr of 2018 (Reported on 02/26/2019): 0.68
3rdQtr of 2018 (Reported on 11/06/2018): 0.16
2ndQtr of 2018 (Reported on 08/06/2018): 0.23
1stQtr of 2018 (Reported on 05/02/2018): 0.27

Base on our calculations, the intrinsic value per share is 14.38, which means it is possibly undervalued and has a margin of safety of 54.59%.

Indicators to Watch:

Short-interest was 56,895,260, which was 24.96% of shares outstanding. The short-interest ratio or days-to-cover ratio was 10.15. This stock has a high level of short interest and may fall in value in the near term.

The current calculated beta is 1.53.

SeekingAlpha:  Short-Sellers’ Favorites: Highest Short Interest Stocks May 2019

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 10.45%, return on assets is 6.51%, profit margin is 36.72%, price-to-sales is 2.35 and price-to-book is 0.59.

Company Scores:

All scores are out of six:
 6  :Valuation Score
 4  :Past Performance Score
 2  :Financial Strength Score
 4  :Future Growth Score
 0  :Dividend Score
 4  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.