CVR Partners (NYSE:UAN) Shares Gap Down After Earnings Miss

Key Points

• CVR Partners shares fell sharply after the company reported quarterly EPS of $(1.02), missing the $1.62 consensus estimate, while revenue of $146.15 million also came in below expectations.
• The stock opened at $115.20 versus a prior close of $124.76 and was last trading at $118.66, down about 4.9%; its average analyst rating remains “Moderate Buy” with a $124 price target.
• Institutional investors made several additions to their positions, and hedge funds and other institutions collectively own 43.83% of CVR Partners.

CVR Partners, LP (NYSE:UAN - Get Free Report) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $124.76, but opened at $115.20. CVR Partners shares last traded at $118.66, with a volume of 21,586 shares traded.

The basic materials company reported ($1.02) EPS for the quarter, missing analysts' consensus estimates of $1.62 by ($2.64). The firm had revenue of $146.15 million for the quarter, compared to analyst estimates of $165.40 million. CVR Partners had a return on equity of 51.56% and a net margin of 23.67%.

Analysts Set New Price Targets

UAN has been the subject of a number of research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of CVR Partners in a report on Tuesday, August 11th. Freedom Broker assumed coverage on CVR Partners in a research report on Tuesday, October 27th. They issued a "hold" rating and a $124.00 target price on the stock. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, CVR Partners currently has an average rating of "Moderate Buy" and a consensus price target of $124.00.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. De Lisle Partners LLP purchased a new stake in CVR Partners in the second quarter valued at $6,058,000. Royal Bank of Canada grew its position in CVR Partners by 30.6% during the 1st quarter. Royal Bank of Canada now owns 11,054 shares of the basic materials company's stock worth $1,400,000 after purchasing an additional 2,591 shares during the period. Apollon Wealth Management LLC raised its stake in shares of CVR Partners by 2.0% during the 3rd quarter. Apollon Wealth Management LLC now owns 7,873 shares of the basic materials company's stock valued at $974,000 after buying an additional 158 shares during the last quarter. Bank of America Corp DE raised its stake in shares of CVR Partners by 219.8% during the 1st quarter. Bank of America Corp DE now owns 7,209 shares of the basic materials company's stock valued at $913,000 after buying an additional 4,955 shares during the last quarter. Finally, Alps Advisors Inc. purchased a new position in shares of CVR Partners during the 3rd quarter valued at about $542,000. Hedge funds and other institutional investors own 43.83% of the company's stock.

CVR Partners Trading Down 4.9%

The firm has a market cap of $1.25 billion, a price-to-earnings ratio of 7.83 and a beta of 0.21. The company has a fifty day moving average price of $127.94 and a 200-day moving average price of $121.59. The company has a current ratio of 3.01, a quick ratio of 2.11 and a debt-to-equity ratio of 1.64.

About CVR Partners

CVR Partners, LP NYSE: UAN is a nitrogen fertilizer producer organized as a master limited partnership and managed by CVR GP, LLC. The company manufactures and sells nitrogen-based fertilizers used primarily in agricultural applications.

Its principal products are ammonia and urea ammonium nitrate (UAN) solution. Ammonia is sold directly to agricultural customers and other users, while UAN is a liquid fertilizer commonly applied to crops. CVR Partners markets its products to distributors, retailers, and agricultural customers.

CVR Partners operates production facilities in Coffeyville, Kansas, and East Dubuque, Illinois.

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