Centennial Resource Development Inc. (NASDAQ: CDEV): Reassessing Prospects


Renaissance Technologies LLC has recently announced that it has increased stake in Centennial Resource Development Inc. (NASDAQ:CDEV) by 20.32%. After grabbing 5.75 million shares, the institutional investor is now in possession of 0.97 million shares of the Energy Company. The new investment brought the stake of investor firm to 2.08% having worth around $4.53 million. Moreover, First Trust Advisors LP increased its share by 4.64 million to have a control over 5.16 million shares. And Millennium Management LLC raised its holdings to 3.66 million shares by acquiring 4.21 million shares or 1.52% of the stake.

Centennial Resource Development Inc. (CDEV) concluded trading on 08/26/20 at a closing price of $0.76, with 6.56 million shares of worth about $4.98 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -4.44% during that period and on Wednesday the price saw a loss of about -3.23%. Currently the company’s common shares owned by public are about 277.13M shares, out of which, 174.66M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 18 analysts are covering the CDEV stock and their offered price forecasts bring an average price target of $1.19. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $3.00 and could fall to a lowest price of $0.50. Analysts also issued an outlook of 3.10 for the Centennial Resource Development Inc. stock for next 12 months. The stock’s current price level is 37.19% above of average price target set by the analysts, while a rise to estimated low would result in loss of -52.0 for the stock. However, touching the estimated high of $3.00 would mean a gain of 74.67% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 78 times over the past 12 months. They bought 27,781,298 shares in 54 of the transactions. In 24 selling transactions, insiders dumped 414,256 shares.

Vanguard Total Stock Market Index, Vanguard Extended Market Index Fu, and Nuveen Equity Market Neutral Fund are the top 3 mutual funds which are holding stakes in Centennial Resource Development Inc. Vanguard Total Stock Market Index is currently holding 5.08 million shares of worth totaling $4.0 million. The company recently came buying 0.0 shares which brought its stake up to 1.83% of the company’s outstanding shares. Vanguard Extended Market Index Fu bought 305.0 shares, after which its hold over company’s outstanding shares expand to 1.06%, leaving 2.93 million shares with the mutual fund that have a worth of about $2.3 million. Nuveen Equity Market Neutral Fund, after buying 2.33 million shares, have now control over 0.84% of the stake in the company. It holds 2.33 million shares of worth $1.83 million.

Centennial Resource Development Inc. (NASDAQ: CDEV) started trading at $0.7851, below -$0.0 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $0.76, or with a loss of -3.23%. Stock saw a price change of -4.44% in past 5 days and over the past one month there was a price change of -11.40%. Year-to-date (YTD), CDEV shares are showing a performance of -83.51% which decreased to -82.52% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $0.24 but also hit the highest price of $6.09 during that period. While comparing its average daily trading volume of 12.50 million shares, we see that about 6.56 million changed hands on the day. The stock is currently trading -9.58% below its 20-day simple moving average (SMA20), while that difference is down -15.30% for SMA50 and it goes to -59.79% lower than SMA200.

Renaissance Technologies LLC acquired 5.75 million shares of Centennial Resource Development Inc. having value of about $4.53 million. Data submitted at the U.S SEC by Renaissance Technologies LLC revealed that the firm now holds 0.97 million shares in the company valued at close to $738217.64, or have control over 20.32% stake in the company. Centennial Resource Development Inc. (NASDAQ: CDEV) currently have 277.13M outstanding shares and institutions hold larger chunk of about 70.30% of that. Holding of mutual funds in the company is about 23.23% while other institutional holders and individual stake holders have control over 37.51% and 14.21% of the stake respectively.

The stock has a current market capitalization of $221.92M and its 3Y-monthly beta is at 7.06. It has posted earnings per share of -$1.95 in the same period. It has Quick Ratio of 0.50 while making debt-to-equity ratio of 0.40. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for CDEV, volatility over the week remained 6.60% while standing at 7.23% over the month.

Analysts are in expectations that Centennial Resource Development Inc. (CDEV) stock would likely to be making an EPS of -$0.21 in the current quarter, while forecast for next quarter ESPS is -$0.12 and it is -$0.23 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.47 which is $0.02 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of -$0.01 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -92.20% while it is estimated to increase by 90.00% in next year.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by SunTrust on April 29, 2020 offering a Hold rating for the stock and assigned a target price of to it. Coverage by Scotiabank stated Centennial Resource Development Inc. (CDEV) stock as a Sector underperform in their note to investors on April 07, 2020, suggesting a price target of for the stock. On March 24, 2020, Barclays Downgrade their recommendations, while on March 19, 2020, Credit Suisse Resumed their ratings for the stock with a price target of $1. Stock get an Underperform rating from Cowen on March 11, 2020.


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