Central Puerto (NYSE:CEPU) Shares Gap Up - Still a Buy?

Key Points

• Central Puerto shares opened sharply higher, rising from a previous close of $11.68 to $12.54 and recently trading at $12.58, up 1.4%.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and a $22.75 price target, despite Bank of America lowering its target to $28 and other analysts assigning hold ratings.
• The company declared a $1.0758 special dividend payable October 7 to shareholders of record September 28; institutional investors have also recently increased exposure, though they own only 2.97% of the stock.

Central Puerto S.A. Sponsored ADR (NYSE:CEPU - Get Free Report) gapped up prior to trading on Tuesday. The stock had previously closed at $11.68, but opened at $12.54. Central Puerto shares last traded at $12.58, with a volume of 17,765 shares trading hands.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Bank of America decreased their price target on shares of Central Puerto from $29.00 to $28.00 and set a "buy" rating for the company in a research note on Thursday, September 17th. Wall Street Zen downgraded shares of Central Puerto from a "buy" rating to a "hold" rating in a research report on Saturday, September 19th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Central Puerto in a research report on Wednesday, August 26th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $22.75.

Central Puerto Trading Up 1.4%

The company has a market cap of $1.91 billion, a P/E ratio of 4.19 and a beta of 0.85. The company has a current ratio of 1.28, a quick ratio of 1.19 and a debt-to-equity ratio of 0.22. The business has a 50 day moving average price of $13.59 and a 200-day moving average price of $14.58.

Central Puerto Dividend Announcement

The company also recently declared a special dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Monday, September 28th will be paid a $1.0758 dividend. The ex-dividend date is Monday, September 28th. Central Puerto's dividend payout ratio (DPR) is currently 29.67%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. SPX Gestao de Recursos Ltda bought a new stake in shares of Central Puerto during the 1st quarter worth about $6,084,000. Absolute Gestao de Investimentos Ltda. acquired a new position in shares of Central Puerto in the first quarter valued at approximately $4,814,000. Bank of America Corp DE grew its position in shares of Central Puerto by 285.7% in the first quarter. Bank of America Corp DE now owns 132,818 shares of the company's stock valued at $2,235,000 after purchasing an additional 98,380 shares during the last quarter. Walleye Capital LLC bought a new position in shares of Central Puerto during the first quarter worth approximately $1,349,000. Finally, Banco BTG Pactual S.A. bought a new position in shares of Central Puerto during the fourth quarter worth approximately $476,000. 2.97% of the stock is currently owned by institutional investors and hedge funds.

Central Puerto Company Profile

Central Puerto SA NYSE: CEPU is an Argentine electric power generation company. Its principal business is the development, ownership, operation and maintenance of power generation facilities that supply electricity to Argentina's wholesale electricity market and other customers under applicable market and contractual arrangements.

The company's generation portfolio includes conventional thermal power plants, hydroelectric facilities and renewable energy projects. Its operations use technologies such as natural-gas-fired and other thermal generation, hydroelectric power, and wind energy, giving Central Puerto exposure to multiple segments of Argentina's electricity industry.

Central Puerto was formed during the restructuring and privatization of Argentina's electricity sector and has expanded its portfolio through acquisitions, new construction and investments in generation capacity.

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