Central Puerto (NYSE:CEPU) Shares Up 4.1% - Still a Buy?

Key Points

• Central Puerto shares rose 4.1% to $13.16, although trading volume was 71% below the average session volume.
• Analyst sentiment remains favorable overall, with a consensus “Moderate Buy” rating and an average price target of $22.75, despite one downgrade to “Hold” and a reduced Bank of America target of $28.
• The company recently paid a special $1.0758 dividend; Central Puerto has a $1.98 billion market capitalization, a low 4.37 price-to-earnings ratio, and institutional investors own 2.97% of its shares.

Central Puerto S.A. Sponsored ADR (NYSE:CEPU - Get Free Report) rose 4.1% during trading on Monday. The company traded as high as $13.14 and last traded at $13.16. 89,711 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 305,870 shares. The stock had previously closed at $12.64.

Analyst Upgrades and Downgrades

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

Central Puerto Stock Performance

The firm has a market cap of $1.98 billion, a price-to-earnings ratio of 4.37 and a beta of 0.85. The stock has a 50 day moving average of $13.41 and a 200 day moving average of $14.50. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.22.

Central Puerto Dividend Announcement

The company also recently disclosed a special dividend, which was paid on Wednesday, October 7th. Investors of record on Monday, September 28th were paid a $1.0758 dividend. The ex-dividend date of this dividend was Monday, September 28th. Central Puerto's dividend payout ratio (DPR) is 29.67%.

Institutional Investors Weigh In On Central Puerto

Several institutional investors and hedge funds have recently added to or reduced their stakes in CEPU. SPX Gestao de Recursos Ltda acquired a new position in shares of Central Puerto during the 1st quarter worth $6,084,000. Absolute Gestao de Investimentos Ltda. bought a new stake in shares of Central Puerto during the 1st quarter worth $4,814,000. Bank of America Corp DE boosted its stake in 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 buying an additional 98,380 shares in the last quarter. Walleye Capital LLC acquired a new stake in Central Puerto in the first quarter valued at about $1,349,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in Central Puerto in the first quarter valued at about $271,000. 2.97% of the stock is currently owned by institutional investors.

About Central Puerto

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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