CenterPoint Energy Inc. (CNP): What is the Risk Factor?

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CenterPoint Energy Inc. (NYSE:CNP) saw an upside of 0.63% to close Tuesday at $30.19 after adding $0.19 on the day. The 5-day average trading volume is 3,184,160 shares of the company’s common stock. It has gained $31.20 in the past week and touched a new high 1 time within the past 5 days. An average of 3,188,230 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,323,270.

CNP’s 1-month performance is -1.11% or -$0.50 on its low of $28.90 reached on 01/05/23. The company’s shares have touched a 52-week low of $25.03 and high of $33.50, with the stock’s rally to the 52-week high happening on 01/13/23. YTD, CNP has achieved 0.67% or $0.20 and has reached a new high 6 times. However, the current price is down -9.88% from the 52-week high price.

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Insider Transactions

CNP stock investors last saw insider trading activity on Nov 07.Smitherman Barry T (Director) most recently sold 16,347 shares at $31.23 per share on May 05. This transaction cost the insider $510,576. Director, Smitherman Barry T, sold 2,000 shares at a price of $28.67 on Mar 09.

Valuation Metrics

CNP stock has a beta of 0.88. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.14 while the price-to-book (PB) in the most recent quarter is 2.07.

CenterPoint Energy Inc.’s quick ratio for the period ended September 29 was 0.70, with the current ratio over the same period at 0.90. As well, the company’s long term debt to equity for the quarter ending September 29 was 1.46, while the total debt to equity was 1.69. The firm’s gross profit as reported stood at $1.36 billion against revenue of $8.35 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, CenterPoint Energy Inc.’s cash and short-term investments amounted to $452.0 million against total debt of $15.6 billion. Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -3.17% to $189.0 million, while revenue of $179.0 million was 5.29% off the previous quarter. Analysts expected CNP to announce $0.3 per share in earnings in its latest quarter, but it posted $0.32, representing a 6.70% surprise. EBITDA for the quarter stood at more than $713.0 million. CNP stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 26.73 billion, with total debt at $15.6 billion. Shareholders hold equity totaling $629.54 million.

Let’s look briefly at CenterPoint Energy Inc. (CNP) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 45.87% to suggest the stock is trending Neutral, with historical volatility in this time period at 17.29%.

The stock’s 5-day moving average is $30.19, reflecting a -2.86% or -$0.89 change from its current price. CNP is currently trading -0.40% above its 20-day SMA, -4.61% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +7.09% and SMA200 by-4.97%.

Stochastic %K and %D was 46.69% and 49.16% and the average true range (ATR) pointed at 0.65. The RSI (14) points at 48.16%, while the 14-day stochastic is at 50.19% with the period’s ATR at 0.65. The stock’s 9-day MACD Oscillator is pointing at -0.52 and -0.27 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for CenterPoint Energy Inc. (NYSE: CNP), Guggenheim downgraded it to a Neutral rating. They previously had a Buy rating on the stock. Analysts offering their rating for CNP stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate CNP as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 10 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $31.00 and a high of $35.00, with their median price target at $32.50. Looking at these predictions, the average price target given by analysts is for CenterPoint Energy Inc. (CNP) stock is $32.50.

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