DAVENPORT & Co LLC Reduces Position in California Resources Corporation $CRC

Key Points

• DAVENPORT & Co LLC cut its California Resources position by 24.1% in the second quarter, selling 70,015 shares and retaining 220,916 shares valued at approximately $11.6 million. Institutional investors still own 97.79% of CRC’s outstanding stock.
• California Resources reported quarterly revenue of $1.30 billion, up 33% year over year and above forecasts, but adjusted EPS of $0.99 missed consensus by $0.37. The company declared a quarterly dividend of $0.405, implying a 3.0% annualized yield.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $72.55, although several targets were lowered. Strategic midstream expansion and carbon-capture initiatives offer potential upside, while hedging contracts are limiting the benefit of higher oil prices.

DAVENPORT & Co LLC decreased its position in shares of California Resources Corporation (NYSE:CRC - Free Report) by 24.1% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 220,916 shares of the oil and gas producer's stock after selling 70,015 shares during the period. DAVENPORT & Co LLC owned 0.25% of California Resources worth $11,621,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in CRC. UBS Group AG increased its stake in California Resources by 51.5% during the 4th quarter. UBS Group AG now owns 1,471,090 shares of the oil and gas producer's stock valued at $65,772,000 after purchasing an additional 499,845 shares in the last quarter. Saber Capital Managment LLC bought a new position in shares of California Resources in the fourth quarter worth approximately $4,111,000. Vanguard Group Inc. lifted its stake in shares of California Resources by 6.4% in the fourth quarter. Vanguard Group Inc. now owns 8,775,097 shares of the oil and gas producer's stock worth $392,335,000 after buying an additional 529,814 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of California Resources by 8.3% during the fourth quarter. Geode Capital Management LLC now owns 1,853,246 shares of the oil and gas producer's stock valued at $82,878,000 after buying an additional 141,836 shares during the last quarter. Finally, Strs Ohio grew its holdings in shares of California Resources by 750.0% during the fourth quarter. Strs Ohio now owns 23,799 shares of the oil and gas producer's stock valued at $1,064,000 after buying an additional 20,999 shares during the last quarter. Hedge funds and other institutional investors own 97.79% of the company's stock.

Key Headlines Impacting California Resources

Here are the key news stories impacting California Resources this week:

• Positive Sentiment: UBS lowered its price target to $67 from $70 but maintained a Buy rating, implying approximately 25% upside from the referenced share price. The revised target remains supportive of CRC’s valuation despite more cautious estimates. Benzinga
• Positive Sentiment: Recent earnings-call coverage emphasized efficiency improvements, strategic midstream expansion and progress on carbon-capture and storage initiatives. These efforts could strengthen cash flow and diversify CRC beyond upstream oil and gas production. California Resources Corp Earnings Call Highlights Efficiency
• Positive Sentiment: CRC agreed to acquire a California oil-pipeline platform from Crimson Midstream for $63 million. The deal could expand the company’s midstream footprint, improve integration and create additional fee-based revenue opportunities. CRC to acquire Crimson Midstream’s California pipeline platform
• Neutral Sentiment: Executive Vice President Jay A. Bys sold 11,907 shares for about $643,000, reducing his position by 7.47%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it may carry less negative signaling value than a discretionary insider sale. SEC Form 4 filing
• Negative Sentiment: CRC reported adjusted earnings of $0.99 per share, below the $1.36 consensus estimate. Revenue rose 33% year over year to $1.30 billion and exceeded forecasts, but the earnings shortfall remains a near-term overhang.
• Negative Sentiment: Analyst commentary noted that hedging contracts are reducing CRC’s ability to benefit from higher realized oil prices, limiting earnings power even as strategic initiatives advance. California Resources: Executing On Strategic Priorities But Hedges Sap Away Earnings Power

California Resources Stock Performance

CRC opened at $53.53 on Thursday. The company's 50 day moving average is $53.70 and its 200 day moving average is $58.73. The company has a current ratio of 0.55, a quick ratio of 0.47 and a debt-to-equity ratio of 0.45. The company has a market cap of $4.75 billion, a price-to-earnings ratio of -39.36 and a beta of 0.93. California Resources Corporation has a 12-month low of $43.24 and a 12-month high of $71.98.

California Resources (NYSE:CRC - Get Free Report) last announced its earnings results on Monday, August 10th. The oil and gas producer reported $0.99 EPS for the quarter, missing analysts' consensus estimates of $1.36 by ($0.37). California Resources had a negative net margin of 3.79% and a positive return on equity of 9.87%. The business had revenue of $1.30 billion for the quarter, compared to analysts' expectations of $960.20 million. During the same period in the prior year, the company posted $1.10 earnings per share. The firm's quarterly revenue was up 33.0% on a year-over-year basis. On average, equities research analysts predict that California Resources Corporation will post 4.02 EPS for the current year.

California Resources Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be paid a $0.405 dividend. This represents a $1.62 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, September 4th. California Resources's dividend payout ratio is -119.12%.

Insider Activity at California Resources

In related news, EVP Jay A. Bys sold 11,907 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $54.00, for a total value of $642,978.00. Following the transaction, the executive vice president directly owned 147,517 shares of the company's stock, valued at approximately $7,965,918. This trade represents a 7.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 35,721 shares of company stock valued at $2,020,380. Corporate insiders own 0.53% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Zacks Research downgraded shares of California Resources from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 15th. Stephens set a $85.00 price objective on California Resources and gave the company an "overweight" rating in a research report on Friday, July 17th. Wall Street Zen downgraded California Resources from a "buy" rating to a "hold" rating in a research note on Tuesday, June 23rd. Citigroup decreased their price target on California Resources from $78.00 to $70.00 and set a "buy" rating for the company in a research note on Tuesday, June 30th. Finally, Barclays reaffirmed an "overweight" rating and set a $77.00 price target (down from $80.00) on shares of California Resources in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, California Resources has an average rating of "Moderate Buy" and an average price target of $72.55.

California Resources Company Profile

California Resources Corporation NYSE: CRC is an independent exploration and production company focused exclusively on developing oil and natural gas assets in California. Headquartered in Newport Beach, the company engages in hydraulic fracturing, well completions, reservoir management and enhanced recovery operations to produce crude oil, natural gas and natural gas liquids.

CRC's operations are concentrated in three core regions: the Los Angeles Basin, the Ventura Basin and the San Joaquin Basin.

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