Civitas Resources Inc (NYSE: CIVI) has seen a decline in its stock price by -5.33 in relation to its previous close of 53.06. However, the company has experienced a -5.90% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-15 that Civitas Resources is undervalued but with strong growth potential, driven by strategic acquisitions in key U.S. oil basins and a solid dividend strategy. Despite elevated debt levels, Civitas maintains a robust interest coverage ratio and continues to prioritize shareholder returns through dividends and stock buybacks. The company’s commitment to sustainability and advanced drilling techniques positions it well for long-term growth in the competitive oil & gas sector.
Is It Worth Investing in Civitas Resources Inc (NYSE: CIVI) Right Now?
Civitas Resources Inc (NYSE: CIVI) has a higher price-to-earnings ratio of 5.80x compared to its average ratio. CIVI has 36-month beta value of 1.49. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 2 as “overweight,” 1 as “hold,” and 0 as “sell.”
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The public float for CIVI is 93.46M, and currently, short sellers hold a 4.89% ratio of that float. The average trading volume of CIVI on October 16, 2024 was 1.18M shares.
CIVI’s Market Performance
CIVI stock saw a decrease of -5.90% in the past week, with a monthly decline of -6.22% and a quarterly a decrease of -29.59%. The volatility ratio for the week is 2.27%, and the volatility levels for the last 30 days are 2.80% for Civitas Resources Inc (CIVI). The simple moving average for the past 20 days is -5.05% for CIVI’s stock, with a -21.95% simple moving average for the past 200 days.
Analysts’ Opinion of CIVI
Many brokerage firms have already submitted their reports for CIVI stocks, with JP Morgan repeating the rating for CIVI by listing it as a “Overweight.” The predicted price for CIVI in the upcoming period, according to JP Morgan is $67 based on the research report published on September 18, 2024 of the current year 2024.
Wolfe Research, on the other hand, stated in their research note that they expect to see CIVI reach a price target of $90. The rating they have provided for CIVI stocks is “Outperform” according to the report published on July 18th, 2024.
TD Cowen gave a rating of “Buy” to CIVI, setting the target price at $90 in the report published on June 13th of the current year.
CIVI Trading at -10.14% from the 50-Day Moving Average
After a stumble in the market that brought CIVI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -33.92% of loss for the given period.
Volatility was left at 2.80%, however, over the last 30 days, the volatility rate increased by 2.27%, as shares sank -7.82% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -13.41% lower at present.
During the last 5 trading sessions, CIVI fell by -5.90%, which changed the moving average for the period of 200-days by -27.73% in comparison to the 20-day moving average, which settled at $52.90. In addition, Civitas Resources Inc saw -22.99% 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 CIVI starting from CANADA PENSION PLAN INVESTMENT, who sale 6,956,520 shares at the price of $73.22 back on May 15 ’24. After this action, CANADA PENSION PLAN INVESTMENT now owns 9,524,201 shares of Civitas Resources Inc, valued at $509,356,394 using the latest closing price.
Stock Fundamentals for CIVI
Current profitability levels for the company are sitting at:
- 0.58 for the present operating margin
- 0.44 for the gross margin
The net margin for Civitas Resources Inc stands at 0.17. The total capital return value is set at 0.22. Equity return is now at value 14.34, with 6.62 for asset returns.
Based on Civitas Resources Inc (CIVI), the company’s capital structure generated 0.43 points at debt to capital in total, while cash flow to debt ratio is standing at 0.52. The debt to equity ratio resting at 0.74. The interest coverage ratio of the stock is 7.97.
Currently, EBITDA for the company is 2.41 billion with net debt to EBITDA at 1.43. When we switch over and look at the enterprise to sales, we see a ratio of 2.03. The receivables turnover for the company is 6.11for trailing twelve months and the total asset turnover is 0.32. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.41.
Conclusion
To put it simply, Civitas Resources Inc (CIVI) has had a bad 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.
