Calumet (NASDAQ:CLMT) Trading Down 6.7% on Disappointing Earnings

Key Points

• Calumet shares fell 6.7% to about $39.08 after the company reported a quarterly loss of $1.09 per share, missing the $0.07 consensus estimate by $1.16.
• Revenue rose 40.8% year over year to $1.45 billion, exceeding analysts’ $1.12 billion forecast despite the earnings miss.
• Analysts maintain a consensus “Hold” rating with a $37.75 target price; insider ownership declined following stock sales, while institutional investors own 34.41% of shares.

Calumet, Inc. (NASDAQ:CLMT - Get Free Report) dropped 6.7% during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $38.62 and last traded at $39.0810. Approximately 1,234,957 shares changed hands during trading, an increase of 2% from the average daily volume of 1,208,217 shares. The stock had previously closed at $41.88.

The oil and gas company reported ($1.09) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($1.16). The company had revenue of $1.45 billion for the quarter, compared to the consensus estimate of $1.12 billion. The firm's quarterly revenue was up 40.8% compared to the same quarter last year. During the same period in the prior year, the business earned ($1.70) earnings per share.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Weiss Ratings raised Calumet from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, May 11th. The Goldman Sachs Group lifted their price objective on shares of Calumet from $36.00 to $40.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Finally, TD Cowen reissued a "hold" rating on shares of Calumet in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Calumet presently has a consensus rating of "Hold" and a consensus target price of $37.75.

Insider Activity

In related news, major shareholder Group Heritage sold 626,998 shares of the business's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $32.54, for a total value of $20,402,514.92. Following the completion of the sale, the insider owned 12,980,211 shares in the company, valued at approximately $422,376,065.94. The trade was a 4.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Daniel J. Sajkowski sold 4,240 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $36.16, for a total transaction of $153,318.40. Following the transaction, the director owned 77,718 shares in the company, valued at approximately $2,810,282.88. This represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 3.15% of the stock is owned by insiders.

Hedge Funds Weigh In On Calumet

Several hedge funds have recently modified their holdings of CLMT. Renaissance Technologies LLC purchased a new position in Calumet during the first quarter valued at approximately $14,066,000. Hsbc Holdings PLC purchased a new stake in Calumet in the 1st quarter worth approximately $3,059,000. Vanguard Group Inc. boosted its position in Calumet by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 4,703,040 shares of the oil and gas company's stock worth $93,449,000 after purchasing an additional 58,376 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its stake in shares of Calumet by 107.0% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 97,741 shares of the oil and gas company's stock worth $3,509,000 after purchasing an additional 50,530 shares during the period. Finally, First Trust Advisors LP boosted its holdings in Calumet by 36.2% during the first quarter. First Trust Advisors LP now owns 347,486 shares of the oil and gas company's stock worth $12,475,000 after buying an additional 92,368 shares in the last quarter. Institutional investors and hedge funds own 34.41% of the company's stock.

Calumet Stock Down 6.6%

The company's 50-day moving average is $37.90 and its 200 day moving average is $32.58. The company has a market cap of $3.41 billion, a price-to-earnings ratio of -18.12 and a beta of 0.71.

About Calumet

Calumet Specialty Products Partners, L.P. NASDAQ: CLMT is an independent provider of high-value, essential product solutions derived from both petroleum and renewable feedstocks. The company operates an integrated network of manufacturing plants, blending terminals and storage facilities across North America, delivering customized products and technical services to industrial, automotive, consumer and agricultural end markets. By leveraging its scale and technical expertise, Calumet tailors supply chain and formulation solutions to meet stringent regulatory and performance requirements.

Calumet's product portfolio includes specialty lubricants and base oils for high-performance applications; process oils and waxes for food-grade, cosmetic and packaging uses; industrial solvents and cleaning solutions; and fuel additives designed to optimize engine performance and emissions.

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