CVR Energy (NYSE:CVI) Shares Up 7.2% - What's Next?

Key Points

• Shares of CVR Energy jumped 7.2% intraday to about $30.26 on Tuesday, but trading was thin (155,278 shares vs. an average of 1.35M).
• Wall Street consensus is a Strong Sell (five Sell, one Hold) with an average price target of $29.25, reflecting recent downgrades despite Goldman Sachs raising its target to $25.
• Major shareholder Carl C. Icahn bought 275,012 shares at roughly $21.41, increasing his stake to about 71.2 million shares (valued at ~ $1.52B), signaling notable insider/activist buying.

Shares of CVR Energy Inc. (NYSE:CVI - Get Free Report) traded up 7.2% during mid-day trading on Tuesday . The company traded as high as $29.92 and last traded at $30.2560. 155,278 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 1,354,837 shares. The stock had previously closed at $28.22.

Wall Street Analysts Forecast Growth

CVI has been the subject of several recent research reports. Wall Street Zen lowered shares of CVR Energy from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. The Goldman Sachs Group boosted their target price on shares of CVR Energy from $22.00 to $25.00 and gave the company a "sell" rating in a research note on Thursday, March 12th. Finally, Weiss Ratings lowered shares of CVR Energy from a "hold (c)" rating to a "sell (d)" rating in a research note on Friday, February 20th. One analyst has rated the stock with a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Strong Sell" and an average price target of $29.25.

CVR Energy Trading Up 6.8%

The firm has a market capitalization of $3.03 billion, a P/E ratio of 115.82 and a beta of 1.12. The business's 50 day moving average is $23.97 and its two-hundred day moving average is $30.11. The company has a quick ratio of 1.13, a current ratio of 1.79 and a debt-to-equity ratio of 1.95.

CVR Energy (NYSE:CVI - Get Free Report) last announced its earnings results on Wednesday, February 18th. The oil and gas company reported ($0.80) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.84) by $0.04. CVR Energy had a net margin of 0.38% and a negative return on equity of 14.31%. The firm had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.70 billion. During the same quarter in the prior year, the firm posted ($0.13) EPS. CVR Energy's revenue was down 7.0% compared to the same quarter last year. Analysts expect that CVR Energy Inc. will post -0.12 EPS for the current year.

CVR Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 9th. Stockholders of record on Monday, March 2nd were issued a $0.37 dividend. The ex-dividend date was Monday, March 2nd. This represents a $1.48 annualized dividend and a dividend yield of 4.9%.

Insider Activity at CVR Energy

In other news, major shareholder Carl C. Icahn bought 275,012 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The shares were purchased at an average price of $21.41 per share, with a total value of $5,888,006.92. Following the completion of the acquisition, the insider directly owned 71,201,875 shares in the company, valued at approximately $1,524,432,143.75. This trade represents a 0.39% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have purchased a total of 783,404 shares of company stock worth $16,445,044 in the last quarter. 0.01% of the stock is owned by company insiders.

Hedge Funds Weigh In On CVR Energy

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Neo Ivy Capital Management boosted its stake in CVR Energy by 165.4% during the third quarter. Neo Ivy Capital Management now owns 65,340 shares of the oil and gas company's stock valued at $2,384,000 after buying an additional 40,721 shares in the last quarter. JPMorgan Chase & Co. raised its position in CVR Energy by 38.8% in the third quarter. JPMorgan Chase & Co. now owns 380,127 shares of the oil and gas company's stock worth $13,867,000 after acquiring an additional 106,350 shares in the last quarter. Bayforest Capital Ltd bought a new stake in CVR Energy in the third quarter worth about $1,057,000. Allianz Asset Management GmbH lifted its holdings in CVR Energy by 69.3% in the 3rd quarter. Allianz Asset Management GmbH now owns 458,214 shares of the oil and gas company's stock valued at $16,716,000 after acquiring an additional 187,620 shares during the last quarter. Finally, Citigroup Inc. boosted its position in shares of CVR Energy by 95.6% during the 3rd quarter. Citigroup Inc. now owns 391,985 shares of the oil and gas company's stock valued at $14,300,000 after purchasing an additional 191,584 shares in the last quarter. 98.88% of the stock is owned by institutional investors.

About CVR Energy

CVR Energy, Inc is an independent downstream energy company engaged primarily in petroleum refining and nitrogen fertilizer production in the United States. Headquartered in Sugar Land, Texas, CVR Energy operates through two reportable segments—Petroleum Products and Nitrogen Fertilizers—leveraging its refining expertise and distribution network to serve both wholesale and retail markets across key regions in the U.S.

In its Petroleum Products segment, the company owns and operates the Coffeyville, Kansas refinery, which has the capability to process various grades of crude oil into gasoline, diesel, jet fuel and other refined products.

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