What Insider Buying Is Signaling In Callon Petroleum Company (CPE)?

Thanks to a 1 sell/buy ratio, Callon Petroleum Company (NYSE:CPE) insider selling over the last three months picked up more than buying did. When insiders sell more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to decline soon. CPE recorded 1 sales on the open market in the last three months. They sold nearly 15,000 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 217,268 shares when buyers snapped up no shares. The 12-month’s totals signify about a 11-to-1 sell/buy ratio.

Conn Mitzi P parted with a total of 15 thousand shares of Callon Petroleum Company (CPE) at average share price of $11.76. This insider trade in the company took place on 09/18/2018. The total for the sales was set at $176.4 thousand. After this transaction, the Vice President and CAO account balance stood at 66.41 thousand shares. The stock lost -32.06 percent since that insider sale. On 02/14/2017, Weant Jerry A, Vice President of Land, sold 4 thousand shares at a price per share of $14.45. This removed 57.8 thousand shares from the insider’s fortune and the stock saw a -44.71 percent retreat in value since the news became public. This transaction left 57.89 thousand shares in the Vice President of Land account.

On 01/13/2016, Vice President of Land Weant Jerry A performed a purchase transaction worth $6 thousand. This purchase at $6 each has added 1 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 33.17 percent increase since the transaction was reported. The insider now is left with 4 thousand shares remaining in the account. Weant Jerry A, who performs the Vice President of Land job, bought 1 thousand shares for $6.75 thousand. The acquisition occurred on 01/11/2016 was priced at $6.75 per share. The share price soared 18.37 percent since the reporting date. Weant Jerry A now left with a stake of 3 thousand CPE stock worth $23.97 thousand after the insider buying.

The 12-month median price target for Callon Petroleum Company (CPE) assigned by the analysts stands at $16, which represents a return potential of 100.25 percent when compared to the closing price of the stock of $7.99 on Thursday, December 06. The lowest price target for the stock is $9 — slightly more than 12.64 percent from CPE’s current share price. The stock will probably climb 108.64 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $22.8-month high price target. This represents a whopping 185.36 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 28.23 on daily chart, which may remain a cause for comfort. If the price breaks below $7.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $8.31 mark may result into a pull-back move towards $8.63 level. The stock is currently hovering around the first support level of $7.65. Below this, the next support is placed in the zone of $7.31. Till the time, the CPE stock trades above this level, bulls have nothing to fear.

Shares of Callon Petroleum Company (CPE) are trading at a P/E ratio of 21.88 times earnings reported for the past 12 months. The industry CPE operates in has an average P/E of 14.32. Its P/E ratio went as low as 8.39X and as high as 69.02 over the 5-year span. Further, it is sporting a 3.5 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.94. 83.4 percent is the gross profit margin for Callon Petroleum Company and operating margin sits at 46.9 percent. Along with this, the net profit margin is 29.4 percent.

On 6th of December, Callon Petroleum Company (NYSE:CPE) shares ended lower after a volatile session. The shares dropped -0.51 points or -6 percent at $7.99 with a heavy trade volume of 5.045 million shares. After opening the session at $8.29, the shares went as high as $8.29 and as low as $7.634, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.91 billion and now has 238.49 million shares outstanding. Callon Petroleum Company (CPE) stock has lost -24.05 percent of market value in 21 trading days.

In last reported earnings results, CPE earned $0.21 per share, better than the $0.2, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $161M, better than the $146M analysts expected. Earnings are estimated to increase by 171.3 percent this year, 50.06 percent next year and continue to increase by 51.03 percent annually for the next 5 years. Investors will get their next glimpse of CPE’s Q4 earnings on February 26. Analysts are forecasting revenue to climb 57 percent to $186M in the next fiscal quarter, while earnings are seen soaring by nearly 73.33 percent to $0.26 per share. History has shown that shares in Callon Petroleum Company have gone down on 18 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings.

CPE stock has a trailing 3-year beta of 1.07, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.76 a share in the trailing twelve months. The stock’s value has fallen -34.24 percent year to date (YTD) against a decline of -29.73 percent in 12 month’s time. The company’s shares still trade -45.46 percent away from its 1-year high of $14.65 and -5.78 percent down from 52-week low of $8.48. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.