Technicals Say CenterPoint Energy Inc. (CNP) Is A Hold

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CenterPoint Energy Inc. (NYSE:CNP) finished Wednesday with a subtraction of -$0.04 to close at $31.95, a downside of -0.13 percent. An average of 4,860,120 shares of common stock have been traded in the last five days. There was a fall of -$0.80 in the past week, and it reached a new high 44 times over the past 12 months. The last 20 days have seen an average of 3,623,740 shares traded, while the 50-day average volume stands at 3,420,392.

CNP stock has decreased by -0.25% in the last month. The company shares reached their 1-month lowest point of $31.34 on 09/01/22. With the stock rallying to its 52-week high on 09/12/22, shares of the company touched a low of $24.50 and a high of $33.22 in 52 weeks. It has reached a new high 26 times so far this year and achieved 14.48% or $4.04 in price. In spite of this, the price is down -3.84% from the 52-week high.


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Insider Transactions

140 days have passed since CenterPoint Energy Inc. (CNP) last reported insider trading activity. Smitherman Barry T, who is Director, most recently acquired $16,347 shares at $31.23 per share on May 05. In this transaction, the insider spent $510,576. Director, Smitherman Barry T, disposed of 2,000 shares at a price of $28.67 on Mar 09. The insider now owns more than $57,340 worth of shares. Prior to that, Director Smitherman Barry T went on to Sale 16,910 shares at $26.50 each on Nov 08. An amount of $448,096 was transacted.

Valuation Metrics

CenterPoint Energy Inc. (CNP) has a trailing price-to-earnings (P/E) ratio of 23.63. The stock’s beta is 0.86. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.30, the price-to-book (PB) ratio at 2.18.

The company has a payout ratio of 27.40%. The company’s most recent quarterly dividend payment was $0.18 a share, representing a up of 5.88% from $0.17 last year. Its latest increase dividend $0.01 reported on Thursday July 21 2022.

Financial Health

The quick ratio of CenterPoint Energy Inc. for the three months ended June 29 was 0.90, and the current ratio was 1.00, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.43 and a total debt to equity ratio of 1.63 for the quarter ending June 29. Its gross profit as reported stood at $1.36 billion compared to revenue of $8.35 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, CenterPoint Energy Inc.’s return on assets was 4.20%.

Earnings Surprise

For the three-month period that ended June 29, CenterPoint Energy Inc. had $658.0 million in cash and short-term investments compared to $13.24 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $179.0 million in the quarter, while revenues were shrunk -23.46%. The analyst consensus anticipated CenterPoint Energy Inc.’s latest quarter earnings to come in at $0.27 per share, but it turned out to be $0.31, a 14.80% surprise. For the quarter, EBITDA amounted to $678.0 million. Shareholders own equity worth $629.5 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at CenterPoint Energy Inc. (CNP) price momentum. RSI 9-day as of the close on 21 September was 44.83%, suggesting the stock is Neutral, with historical volatility in this time frame at 19.73%.

As of today, CNP’s price is $32.12 -2.44% or -$0.80 from its 5-day moving average. CNP is currently trading +0.13% higher than its 20-day SMA and +1.62% higher than its 100-day SMA. However, the stock’s current price level is +8.53% above the SMA50 and +18.55% above the SMA200.

The stochastic %K and %D were 42.09% and 44.27%, respectively, and the average true range (ATR) was 0.64. With the 14-day stochastic at 32.36% and the average true range at 0.63, the RSI (14) stands at 48.39%. The stock has reached -0.27 on the 9-day MACD Oscillator while the 14-day reading was at -0.19.

Analyst Ratings

Credit Suisse launched coverage on CenterPoint Energy Inc. (NYSE: CNP) in its analyst report released on April 26, 2022. The firm assigned the stock an Outperform rating. The consensus rating for CenterPoint Energy Inc. (CNP) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CNP, while 4 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 13 others rate it as a “buy”.

What is CNP’s price target for the next 12 months?

Analysts predict a range of price targets between $31.00 and $37.00, with a median target of $34.00. Taking a look at these predictions, the average price target given by analysts for CenterPoint Energy Inc. (CNP) stock is $33.71.

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