Centerpoint Energy Inc. (NYSE: CNP)’s stock price has gone rise by 0.81 in comparison to its previous close of 27.08, however, the company has experienced a 1.98% increase in its stock price over the last five trading days. seekingalpha.com reported 2024-08-31 that Roger Conrad, editor of Conrad’s Utility Investor, and Elliott Gue, editor of Energy & Income Advisor, are experts on utility and energy stocks, respectively. They start by explaining why energy demand should hold up despite concerns about China’s economy, and why (and by how much) investment in Artificial Intelligence-related data centers is boosting electricity demand. We also discuss investments designed to increase power grid resiliency, the impact of politics on energy companies, the reasons why the energy transition will take a long time – and how investors can profit from these trends.
Is It Worth Investing in Centerpoint Energy Inc. (NYSE: CNP) Right Now?
Centerpoint Energy Inc. (NYSE: CNP) has a higher price-to-earnings ratio of 16.89x compared to its average ratio, The 36-month beta value for CNP is at 0.92. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 2 rating it as “overweight,” 14 as “hold,” and 0 as “sell.”
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
The public float for CNP is 649.02M, and currently, shorts hold a 1.88% of that float. The average trading volume for CNP on September 03, 2024 was 6.73M shares.
CNP’s Market Performance
CNP’s stock has seen a 1.98% increase for the week, with a -3.02% drop in the past month and a -10.52% fall in the past quarter. The volatility ratio for the week is 1.47%, and the volatility levels for the past 30 days are at 2.25% for Centerpoint Energy Inc. The simple moving average for the last 20 days is 3.60% for CNP’s stock, with a simple moving average of -4.30% for the last 200 days.
Analysts’ Opinion of CNP
Many brokerage firms have already submitted their reports for CNP stocks, with Wells Fargo repeating the rating for CNP by listing it as a “Equal Weight.” The predicted price for CNP in the upcoming period, according to Wells Fargo is $28 based on the research report published on August 13, 2024 of the current year 2024.
JP Morgan gave a rating of “Neutral” to CNP, setting the target price at $29 in the report published on August 02nd of the current year.
CNP Trading at -3.63% from the 50-Day Moving Average
After a stumble in the market that brought CNP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -13.51% of loss for the given period.
Volatility was left at 2.25%, however, over the last 30 days, the volatility rate increased by 1.47%, as shares surge +0.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -12.72% lower at present.
During the last 5 trading sessions, CNP rose by +1.98%, which changed the moving average for the period of 200-days by +2.13% in comparison to the 20-day moving average, which settled at $26.36. In addition, Centerpoint Energy Inc. saw -4.45% 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 CNP starting from Smitherman Barry T, who sale 5,670 shares at the price of $29.42 back on May 03 ’24. After this action, Smitherman Barry T now owns 21,203 shares of Centerpoint Energy Inc., valued at $166,811 using the latest closing price.
Foster Christopher A, the EVP and CFO of Centerpoint Energy Inc., purchase 5,000 shares at $28.10 during a trade that took place back on Nov 29 ’23, which means that Foster Christopher A is holding 147,693 shares at $140,496 based on the most recent closing price.
Stock Fundamentals for CNP
Current profitability levels for the company are sitting at:
- 0.22 for the present operating margin
- 0.37 for the gross margin
The net margin for Centerpoint Energy Inc. stands at 0.12. The total capital return value is set at 0.05. Equity return is now at value 10.15, with 2.66 for asset returns.
Based on Centerpoint Energy Inc. (CNP), the company’s capital structure generated 0.66 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 1.9. The interest coverage ratio of the stock is 2.39.
Currently, EBITDA for the company is 3.2 billion with net debt to EBITDA at 5.74. When we switch over and look at the enterprise to sales, we see a ratio of 4.36. The receivables turnover for the company is 7.42for trailing twelve months and the total asset turnover is 0.21. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.20.
Conclusion
In conclusion, Centerpoint Energy Inc. (CNP) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others 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.
