Callon Petroleum (CPE) Weak On High Volume
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Callon Petroleum as such a stock due to the following factors:
- CPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
- CPE has traded 541,997 shares today.
- CPE is trading at 8.20 times the normal volume for the stock at this time of day.
- CPE is trading at a new low 11.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CPE with the Ticky from Trade-Ideas. See the FREE profile for CPE NOW at Trade-Ideas
More details on CPE:
Callon Petroleum Company is engaged in the acquisition, exploration, development, and production of oil and gas properties properties in the Permian Basin in West Texas. CPE has a PE ratio of 22.0. Currently there are 10 analysts that rate Callon Petroleum a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Callon Petroleum has been 1.6 million shares per day over the past 30 days. Callon has a market cap of $400.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.03 and a short float of 10.5% with 3.70 days to cover. Shares are up 36.7% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Callon Petroleum as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 18.7%. Since the same quarter one year prior, revenues rose by 28.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 1027.6% when compared to the same quarter one year prior, rising from $1.08 million to $12.20 million.
- CPE's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that CPE's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
- CALLON PETROLEUM CO/DE reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CALLON PETROLEUM CO/DE swung to a loss, reporting -$0.01 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($0.37 versus -$0.01).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CALLON PETROLEUM CO/DE's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Callon Petroleum Ratings Report.
null