CVR Energy (NYSE:CVI) Stock Jumps 6.4% - Time to Buy?

Key Points

• CVR Energy shares jumped 6.4% to $61.86, despite trading volume falling 95% below the daily average. The stock is well above its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed to bearish: CVR received some recent upgrades, but the consensus rating is “Reduce,” with an average price target of $45.75—well below the current share price.
• The company beat quarterly earnings and revenue expectations, reporting $0.34 in EPS on $2.74 billion in revenue. CVR also pays a $0.10 quarterly dividend, while institutional investors own 98.88% of its shares.

CVR Energy Inc. (NYSE:CVI - Get Free Report) shot up 6.4% on Monday. The stock traded as high as $61.56 and last traded at $61.86. 61,283 shares were traded during mid-day trading, a decline of 95% from the average daily volume of 1,126,974 shares. The stock had previously closed at $58.16.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. UBS Group upped their price objective on shares of CVR Energy from $35.00 to $53.00 and gave the company a "neutral" rating in a report on Friday, October 2nd. Wall Street Zen raised shares of CVR Energy from a "buy" rating to a "strong-buy" rating in a research report on Saturday, October 10th. Zacks Research raised shares of CVR Energy from a "hold" rating to a "strong-buy" rating in a report on Friday, October 16th. The Goldman Sachs Group upped their target price on CVR Energy from $36.00 to $50.00 and gave the company a "sell" rating in a research report on Friday, October 9th. Finally, Weiss Ratings upgraded CVR Energy from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $45.75.

CVR Energy Stock Performance

The company has a debt-to-equity ratio of 2.38, a current ratio of 1.42 and a quick ratio of 0.92. The company has a market capitalization of $6.23 billion, a PE ratio of 90.92 and a beta of 0.90. The firm's fifty day simple moving average is $50.29 and its 200 day simple moving average is $38.48.

CVR Energy (NYSE:CVI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The oil and gas company reported $0.34 earnings per share 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 company had revenue of $2.74 billion for the quarter, compared to the consensus estimate of $2.22 billion. During the same period last year, the firm earned ($0.23) EPS. The firm's revenue for the quarter was up 55.5% compared to the same quarter last year. On average, research analysts predict that CVR Energy Inc. will post 4.20 EPS for the current year.

CVR Energy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 10th were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Monday, August 10th. CVR Energy's payout ratio is currently 58.82%.

Institutional Trading of CVR Energy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in CVR Energy in the 2nd quarter valued at about $143,262,000. PDT Partners LLC acquired a new stake in CVR Energy in the 2nd quarter worth about $14,502,000. Dimensional Fund Advisors LP increased its stake in CVR Energy by 16.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,908,062 shares of the oil and gas company's stock worth $64,220,000 after buying an additional 265,013 shares in the last quarter. First Trust Advisors LP increased its stake in CVR Energy by 687.6% during the 1st quarter. First Trust Advisors LP now owns 263,448 shares of the oil and gas company's stock worth $8,865,000 after buying an additional 229,998 shares in the last quarter. Finally, State Street Corp increased its stake in CVR Energy by 11.0% during the 2nd quarter. State Street Corp now owns 2,153,498 shares of the oil and gas company's stock worth $59,315,000 after buying an additional 213,829 shares in the last quarter. Institutional investors and hedge funds own 98.88% of the company's stock.

About CVR Energy

CVR Energy, Inc NYSE: CVI is a diversified energy company engaged primarily in petroleum refining and nitrogen fertilizer production. Through its refining operations, the company processes crude oil into transportation fuels and other refined products, including gasoline, diesel fuel, jet fuel and asphalt.

CVR Energy operates refineries in Coffeyville, Kansas, and Wynnewood, Oklahoma. The facilities primarily serve customers in the Midcontinent region of the United States and are supported by related logistics and distribution assets.

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