Stock Traders Purchase Large Volume of CenterPoint Energy Put Options (NYSE:CNP)

Key Points

• Put-option activity surged for CenterPoint Energy, with traders purchasing 10,004 puts—about 1,186% above the average volume of 778.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $44.29; recent targets range from $39 to $49.
• CNP shares slipped 0.5% to $42.43, while the company reported quarterly earnings and revenue above estimates and declared a quarterly dividend of $0.24 per share, implying a 2.3% yield.

CenterPoint Energy, Inc. (NYSE:CNP - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock traders acquired 10,004 put options on the company. This is an increase of 1,186% compared to the average volume of 778 put options.

Analysts Set New Price Targets

A number of research analysts recently weighed in on CNP shares. Morgan Stanley raised their price objective on CenterPoint Energy from $38.00 to $39.00 and gave the company an "equal weight" rating in a research report on Wednesday, October 21st. Royal Bank Of Canada assumed coverage on shares of CenterPoint Energy in a report on Tuesday, September 15th. They issued a "sector perform" rating and a $40.00 target price for the company. Wolfe Research restated an "outperform" rating and issued a $49.00 price objective on shares of CenterPoint Energy in a research report on Wednesday, July 29th. Barclays boosted their target price on shares of CenterPoint Energy from $41.00 to $43.00 and gave the stock an "equal weight" rating in a report on Wednesday, October 28th. Finally, BMO Capital Markets dropped their price target on CenterPoint Energy from $48.00 to $45.00 and set an "outperform" rating for the company in a research note on Monday, October 19th. Ten research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $44.29.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CNP. Alps Advisors Inc. lifted its stake in shares of CenterPoint Energy by 7.9% in the 3rd quarter. Alps Advisors Inc. now owns 77,387 shares of the utilities provider's stock valued at $2,848,000 after purchasing an additional 5,680 shares in the last quarter. Ashton Thomas Private Wealth LLC grew its stake in shares of CenterPoint Energy by 11.3% during the third quarter. Ashton Thomas Private Wealth LLC now owns 11,678 shares of the utilities provider's stock valued at $430,000 after acquiring an additional 1,186 shares in the last quarter. Heritage Family Offices LLP acquired a new stake in CenterPoint Energy during the 3rd quarter valued at approximately $73,000. Chicago Partners Investment Group LLC increased its holdings in CenterPoint Energy by 17.4% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 6,754 shares of the utilities provider's stock worth $277,000 after purchasing an additional 1,001 shares during the last quarter. Finally, Rakuten Investment Management Inc. raised its position in shares of CenterPoint Energy by 10.3% in the 3rd quarter. Rakuten Investment Management Inc. now owns 117,937 shares of the utilities provider's stock valued at $4,357,000 after purchasing an additional 11,016 shares in the last quarter. 91.77% of the stock is currently owned by institutional investors and hedge funds.

CenterPoint Energy Stock Down 0.5%

CNP traded down $0.22 on Tuesday, hitting $42.43. The company had a trading volume of 1,765,553 shares, compared to its average volume of 5,921,383. The company has a debt-to-equity ratio of 2.02, a quick ratio of 0.97 and a current ratio of 1.15. The stock has a market capitalization of $28.12 billion, a price-to-earnings ratio of 24.23, a P/E/G ratio of 2.75 and a beta of 0.47. The stock has a fifty day moving average price of $39.23 and a 200-day moving average price of $41.55. CenterPoint Energy has a 12-month low of $36.37 and a 12-month high of $45.26.

CenterPoint Energy (NYSE:CNP - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The utilities provider reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.03. The firm had revenue of $2.19 billion for the quarter, compared to the consensus estimate of $2.17 billion. CenterPoint Energy had a net margin of 11.76% and a return on equity of 11.16%. During the same quarter in the prior year, the company posted $0.50 earnings per share. Analysts predict that CenterPoint Energy will post 1.91 EPS for the current fiscal year.

CenterPoint Energy Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.24 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $0.96 dividend on an annualized basis and a yield of 2.3%. CenterPoint Energy's dividend payout ratio is 54.86%.

CenterPoint Energy Company Profile

CenterPoint Energy, Inc is a public utility holding company that provides electric and natural gas energy services in the United States. Its operations include electric transmission and distribution, natural gas distribution, and related infrastructure services for residential, commercial, and industrial customers.

The company is the primary electric delivery utility for the Houston, Texas, area and operates electric and natural gas businesses in several states, including Texas, Indiana, Ohio, Louisiana, and Mississippi.

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