CenterPoint Energy Inc. (NYSE:CNP) finished Thursday with a subtraction of -$0.24 to close at $28.75, a downside of -0.83 percent. An average of 3,815,260 shares of common stock have been traded in the last five days. There was a fall of -$0.60 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 4,533,890 shares traded, while the 50-day average volume stands at 3,998,080.
CNP stock has decreased by -5.30% in the last month. The company shares reached their 1-month lowest point of $28.66 on 08/10/23. With the stock rallying to its 52-week high on 01/13/23, shares of the company touched a low of $25.03 and a high of $33.50 in 52 weeks. It has reached a new high 6 times so far this year and lost -4.13% or -$1.24 in price. In spite of this, the price is down -14.18% from the 52-week high.
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Insider Transactions
CNP stock investors should be aware that CenterPoint Energy Inc. (CNP) stock had its last reported insider trading activity 95 days ago on May 08. In this transaction, the insider spent $152,548. Director, Pound Ted, disposed of 2,770 shares at a price of $30.50 on May 05. The insider now owns more than $84,485 worth of shares.
Valuation Metrics
CenterPoint Energy Inc. (CNP) has a trailing price-to-earnings (P/E) ratio of 24.91. The stock’s beta is 0.89. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.98, the price-to-book (PB) ratio at 1.89.
Financial Health
The quick ratio of CenterPoint Energy Inc. for the three months ended June 29 was 0.70, and the current ratio was 0.90, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.67 and a total debt to equity ratio of 1.77 for the quarter ending June 29. CenterPoint Energy Inc.’s EBITDA margin for the year ending June 29 is 30.63%, while its operating margin for the same period stands at 17.80%. Its gross profit as reported stood at $1.57 billion compared to revenue of $9.32 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 1.90%.
Earnings Surprise
For the three-month period that ended June 29, CenterPoint Energy Inc. had $517.0 million in cash and short-term investments compared to $16.03 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 $106.0 million in the quarter, while revenues were shrunk -68.87%. 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 $0.28, a 3.70% surprise. For the quarter, EBITDA amounted to $729.0 million. Shareholders own equity worth $631.18 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 10 August was 30.56%, suggesting the stock is Neutral, with historical volatility in this time frame at 12.51%.
As of today, CNP’s price is $28.94 -2.04% or -$0.60 from its 5-day moving average. CNP is currently trading -5.52% lower than its 20-day SMA and -1.03% lower than its 100-day SMA. However, the stock’s current price level is +2.02% above the SMA50 and +6.44% above the SMA200.
The stochastic %K and %D were 6.17% and 7.17%, respectively, and the average true range (ATR) was 0.51. With the 14-day stochastic at 3.24% and the average true range at 0.51, the RSI (14) stands at 37.60%. The stock has reached -0.38 on the 9-day MACD Oscillator while the 14-day reading was at -0.90.
Analyst Ratings
Mizuho downgraded CenterPoint Energy Inc. (NYSE: CNP) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. 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 7 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 10 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 $30.00 and $34.00, with a median target of $33.00. Taking a look at these predictions, the average price target given by analysts for CenterPoint Energy Inc. (CNP) stock is $32.77.
