Do ChampionX Corporation (NYSE: CHX) Fit In A Value Investing Philosophy?


    BlackRock Fund Advisors recently announced the acquisition of new stake in ChampionX Corporation (NYSE:CHX). The institutional investor has increased its shareholding in the Energy company by 220.54% to 20.28 million shares with purchase of 13.95 million shares. This fresh investment now brings its stake to 9.89% valued currently at $192.86 million. In addition, The Vanguard Group, Inc. raised its holdings by 10.71 million to 18.24 million shares. And Boston Partners Global Investors,.. has lifted its position by 112.36% or 5.33 million shares – to 10.07 million shares.

    With over 1.26 million ChampionX Corporation (CHX) shares trading Tuesday and a closing price of $10.30 on the day, the dollar volume was approximately $13.0 million. The shares have shown a negative weekly performance of -2.00% and its price on 09/01/20 gained nearly 0.59%. Currently, there are 199.81M common shares owned by the public and among those 198.72M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for CHX have a consensus price objective of $14.36. The analysts have set the share’s price value over the next 12 months at a high of $17.00 and a low of $12.00 should the stock experience a downside. Incidentally, analysts’ outlook for the ChampionX Corporation stock is 1.80 for the next 12 months. The average price target is 28.27% above its last price level and an upside to the estimated low will see the stock gain 14.17% over that period. But an upside of 39.41% will see the stock hit the forecast high price target while mean target price for the stock is $14.50.

    Insiders at the company have transacted a total of 26 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 8 of these insider trades were purchases, accounting for 38,141 shares. Insider sales of the common stock occurred on 18 occasions, with total insider shares sold totaling 27,893 shares.

    The top 3 mutual fund holders in ChampionX Corporation are Vanguard Total Stock Market Index, John Hancock III – Disciplined Va, and iShares Core S&P Mid Cap ETF. Vanguard Total Stock Market Index owns 5.45 million shares of the company’s stock, all valued at over $51.8 million. The company sold 1199.0 shares recently to bring their total holdings to about 2.66% of the shares outstanding. John Hancock III – Disciplined Va bought 84149.0 shares to see its total holdings expand to 5.35 million shares valued at over $50.92 million and representing 2.61% of the shares outstanding. iShares Core S&P Mid Cap ETF sold 53953.0 shares to bring its total holdings to over 4.91 million shares at a value of $46.74 million. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.40% of the shares outstanding.

    Shares of ChampionX Corporation (NYSE: CHX) opened at $10.07, down -$0.17 from a prior closing price of $10.24. However, the script later closed the day at $10.30, up 0.59%. The company’s stock has a 5-day price change of -2.00% and -0.39% over the past three months. CHX shares are trading -69.51% year to date (YTD), with the 12-month market performance down to -60.55% lower. It has a 12-month low price of $2.89 and touched a high of $34.80 over the same period. Currently, 1.26 million shares have been traded, compared to an average intraday trading volume of 5.38 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.36%, 4.10%, and -35.77% respectively.

    Institutional ownership of ChampionX Corporation (NYSE: CHX) shares accounts for 99.70% of the company’s 199.81M shares outstanding. Mutual fund holders own 37.53%, while other institutional holders and individual stakeholders account for 59.13% and 0.04% respectively.

    It has a market capitalization of $2.01B. The earnings-per-share (ttm) stands at -$9.05. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.34% over the week and 5.21% over the month.

    Analysts forecast that ChampionX Corporation (CHX) will achieve an EPS of -$0.06 for the current quarter, -$0.02 for the next quarter and $0.22 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.16 while analysts give the company a high EPS estimate of -$0.02. Comparatively, EPS for the current quarter was $0.27 a year ago. Earnings per share for the fiscal year are expected to decrease by -43.70%, and 144.00% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate ChampionX Corporation (CHX) as a “Strong Buy” at a consensus score of 1.80. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 3 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CHX, a number of firms have released research notes about the stock. Stifel stated their Buy rating for the stock in a research note on June 26, 2020, with the firm’s price target at $15. BofA/Merrill coverage for the ChampionX Corporation (CHX) stock in a research note released on June 22, 2020 offered a Buy rating with a price target of $12.


    Please enter your comment!
    Please enter your name here