CVR Energy (NYSE:CVI) Trading 11.3% Higher - Here's Why

Key Points

• CVR Energy shares jumped 11.3% to about $39.88, despite trading volume falling 47% below its average daily level.
• The company beat quarterly expectations, reporting $0.34 in EPS versus the $0.26 consensus and $2.74 billion in revenue, up 55.5% year over year.
• Analyst sentiment remains cautious: CVR Energy has an average “Strong Sell” rating and a $30.50 price target, well below its recent trading price, although institutional investors own 98.88% of the stock.

CVR Energy Inc. (NYSE:CVI - Get Free Report) shares rose 11.3% on Friday . The stock traded as high as $39.95 and last traded at $39.88. 611,776 shares changed hands during trading, a decline of 47% from the average daily volume of 1,158,944 shares. The stock had previously closed at $35.83.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CVI. Mizuho raised their price objective on shares of CVR Energy from $28.00 to $29.00 and gave the stock an "underperform" rating in a report on Tuesday, August 4th. Wall Street Zen raised shares of CVR Energy from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. UBS Group reiterated a "neutral" rating and issued a $35.00 price objective on shares of CVR Energy in a research note on Monday, June 29th. Tudor Pickering cut CVR Energy from a "hold" rating to a "sell" rating in a research report on Thursday, June 4th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of CVR Energy in a research note on Wednesday, August 12th. Three research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat, CVR Energy has an average rating of "Strong Sell" and an average price target of $30.50.

CVR Energy Stock Performance

The business has a 50 day moving average of $31.85 and a 200-day moving average of $30.59. The company has a market capitalization of $4.02 billion, a P/E ratio of 58.75 and a beta of 0.83. The company has a debt-to-equity ratio of 2.38, a quick ratio of 0.92 and a current ratio of 1.42.

CVR Energy (NYSE:CVI - Get Free Report) last issued its earnings results on Wednesday, July 29th. The oil and gas company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.26 by $0.08. CVR Energy had a negative return on equity of 15.21% and a net margin of 0.81%.The business had revenue of $2.74 billion during the quarter, compared to the consensus estimate of $2.22 billion. During the same quarter last year, the company earned ($0.23) EPS. The firm's revenue was up 55.5% compared to the same quarter last year. On average, sell-side analysts predict that CVR Energy Inc. will post 0.79 EPS for the current fiscal year.

CVR Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Monday, August 10th were given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Monday, August 10th. CVR Energy's dividend payout ratio (DPR) is 58.82%.

Institutional Trading of CVR Energy

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in CVR Energy during the second quarter worth about $143,262,000. BNP Paribas Financial Markets raised its holdings in shares of CVR Energy by 21,261.8% in the 3rd quarter. BNP Paribas Financial Markets now owns 776,073 shares of the oil and gas company's stock valued at $28,311,000 after acquiring an additional 772,440 shares in the last quarter. PDT Partners LLC bought a new stake in shares of CVR Energy during the 2nd quarter valued at about $14,502,000. Squarepoint Ops LLC bought a new stake in shares of CVR Energy during the 4th quarter valued at about $9,616,000. Finally, Bank of America Corp DE grew its holdings in shares of CVR Energy by 101.2% during the third quarter. Bank of America Corp DE now owns 706,504 shares of the oil and gas company's stock worth $25,773,000 after purchasing an additional 355,412 shares in the last quarter. Institutional investors own 98.88% of the company's stock.

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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