Cadiz (NASDAQ:CDZI) Shares Cross Below 200 Day Moving Average - Should You Sell?

Key Points

• Cadiz stock crossed below its 200-day moving average — the 200‑day MA is $5.39, shares traded as low as $4.82 and last at $4.97 on elevated volume.
• Analyst sentiment is skewed negative — one Buy vs two Sell ratings, a MarketBeat consensus of "Reduce," and several recent downgrades despite a Maxim initiation with a $10 target.
• Fundamentals show stress — the company missed quarterly EPS expectations (reported -$0.13 vs $0.54 expected), has negative ROE and net margin, a negative P/E, and a high debt-to-equity ratio (4.33).

Shares of Cadiz, Inc. (NASDAQ:CDZI - Get Free Report) crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $5.39 and traded as low as $4.82. Cadiz shares last traded at $4.97, with a volume of 845,992 shares trading hands.

Wall Street Analyst Weigh In

CDZI has been the subject of a number of research reports. Maxim Group initiated coverage on Cadiz in a research note on Monday, February 2nd. They issued a "buy" rating and a $10.00 target price for the company. Wall Street Zen downgraded Cadiz from a "sell" rating to a "strong sell" rating in a research note on Saturday, April 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Cadiz in a research note on Wednesday, January 21st. Finally, Zacks Research downgraded Cadiz from a "hold" rating to a "strong sell" rating in a research note on Monday, April 6th. One analyst has rated the stock with a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $10.00.

Cadiz Price Performance

The stock has a market capitalization of $414.60 million, a price-to-earnings ratio of -10.35 and a beta of 2.08. The company has a quick ratio of 1.13, a current ratio of 1.22 and a debt-to-equity ratio of 4.33. The business has a 50-day simple moving average of $5.07 and a two-hundred day simple moving average of $5.39.

Cadiz (NASDAQ:CDZI - Get Free Report) last released its earnings results on Tuesday, March 31st. The company reported ($0.13) earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.67). The firm had revenue of $5.08 million during the quarter, compared to analyst estimates of $4.80 million. Cadiz had a negative return on equity of 104.61% and a negative net margin of 209.35%. As a group, research analysts predict that Cadiz, Inc. will post -0.4 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Permanent Capital Management LP bought a new position in shares of Cadiz in the third quarter valued at $2,344,000. Levin Capital Strategies L.P. increased its holdings in shares of Cadiz by 12.9% in the third quarter. Levin Capital Strategies L.P. now owns 3,661,547 shares of the company's stock valued at $17,283,000 after buying an additional 419,025 shares in the last quarter. GAM Holding AG increased its holdings in shares of Cadiz by 22.6% in the third quarter. GAM Holding AG now owns 490,211 shares of the company's stock valued at $2,314,000 after buying an additional 90,211 shares in the last quarter. Matauro LLC bought a new position in shares of Cadiz in the fourth quarter valued at $603,000. Finally, Mirabella Financial Services LLP bought a new position in shares of Cadiz in the third quarter valued at $236,000. Institutional investors own 79.75% of the company's stock.

Cadiz Company Profile

Cadiz, Inc NASDAQ: CDZI is a Southern California–based water resource management company focused on developing and operating groundwater storage, recovery and conveyance projects. The company holds water rights and mineral rights on approximately 34,000 acres in the Mojave Desert and is chiefly known for advancing the Cadiz Water Project, a planned system to capture, store and distribute groundwater to urban and agricultural users in the region.

The company's primary business activity centers on the development of infrastructure that enables sustainable groundwater banking.

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