Clearway Energy Inc (NYSE: CWEN)’s stock price has gone rise by 0.68 in comparison to its previous close of 23.53, however, the company has experienced a 10.03% increase in its stock price over the last five trading days. Seeking Alpha reported 2024-03-30 that Real estate and utilities sectors are experiencing a rally coinciding with a drop in the 10-year Treasury rate. REITs and utilities are often treated as bond proxies, but they have the potential for growth even in a high-interest rate environment. The market’s lack of nuance and passive ownership of REITs may be contributing to the undervaluation of the sector.
Is It Worth Investing in Clearway Energy Inc (NYSE: CWEN) Right Now?
Clearway Energy Inc (NYSE: CWEN) has a higher price-to-earnings ratio of 35.09x compared to its average ratio. CWEN has 36-month beta value of 0.86.
The public float for CWEN is 80.36M, and currently, short sellers hold a 2.76% ratio of that float. The average trading volume of CWEN on April 04, 2024 was 916.79K shares.
CWEN’s Market Performance
The stock of Clearway Energy Inc (CWEN) has seen a 10.03% increase in the past week, with a 8.17% rise in the past month, and a -12.87% fall in the past quarter. The volatility ratio for the week is 2.52%, and the volatility levels for the past 30 days are at 2.32% for CWEN. The simple moving average for the past 20 days is 8.46% for CWEN’s stock, with a -2.73% simple moving average for the past 200 days.
Analysts’ Opinion of CWEN
Many brokerage firms have already submitted their reports for CWEN stocks, with BofA Securities repeating the rating for CWEN by listing it as a “Buy.” The predicted price for CWEN in the upcoming period, according to BofA Securities is $27 based on the research report published on October 06, 2023 of the previous year 2023.
CIBC gave a rating of “Neutral” to CWEN, setting the target price at $36 in the report published on June 10th of the previous year.
CWEN Trading at 3.83% from the 50-Day Moving Average
After a stumble in the market that brought CWEN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -26.52% of loss for the given period.
Volatility was left at 2.32%, however, over the last 30 days, the volatility rate increased by 2.52%, as shares surge +8.72% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -5.16% lower at present.
During the last 5 trading sessions, CWEN rose by +10.03%, which changed the moving average for the period of 200-days by -21.01% in comparison to the 20-day moving average, which settled at $21.94. In addition, Clearway Energy Inc saw -13.63% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CWEN starting from TotalEnergies SE, who purchase 196,964 shares at the price of $22.86 back on Mar 28 ’24. After this action, TotalEnergies SE now owns 295,235 shares of Clearway Energy Inc, valued at $4,502,833 using the latest closing price.
Global Infrastructure Investor, the Director of Clearway Energy Inc, purchase 196,964 shares at $22.86 during a trade that took place back on Mar 28 ’24, which means that Global Infrastructure Investor is holding 295,235 shares at $4,502,833 based on the most recent closing price.
Stock Fundamentals for CWEN
Current profitability levels for the company are sitting at:
- 0.2 for the present operating margin
- 0.64 for the gross margin
The net margin for Clearway Energy Inc stands at 0.03. The total capital return value is set at 0.02. Equity return is now at value 3.64, with 0.58 for asset returns.
Based on Clearway Energy Inc (CWEN), the company’s capital structure generated 0.8 points at debt to capital in total, while cash flow to debt ratio is standing at 0.08. The debt to equity ratio resting at 4.13. The interest coverage ratio of the stock is 0.78.
Currently, EBITDA for the company is 1.05 billion with net debt to EBITDA at 7.71. When we switch over and look at the enterprise to sales, we see a ratio of 9.79. The receivables turnover for the company is 3.81for trailing twelve months and the total asset turnover is 0.09. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.72.
Conclusion
To put it simply, Clearway Energy Inc (CWEN) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
