Centennial Resource Development, Inc. (CDEV) Shaking the Bears Away

The number of Centennial Resource Development, Inc. (NASDAQ:CDEV) shares shorted has climbed by 218,965 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the December 31st settlement date, which shows a increase in total short interest for CDEV, to 28,517,905, a surge of 0.77% since December 14th. Average daily volume for Centennial Resource Development, Inc. at the December 31st settlement plunged to 4,181,804, as compared to 4,185,013 at the December 14th report. That brought days to cover to 6.819522, a 0.85% increase from the 6.761972 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the CDEV stock we see that the average analyst recommendations at 2 suggests buying these shares.

Centennial Resource Development, Inc. (CDEV) will probably climb 72.14 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $32price as 12-month high target. This represents a whopping 142.24 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $20, which represents a return potential of 51.4 percent when compared to the closing price of the stock of $13.21 on Thursday, January 10. The lowest price target for the stock is $13 — slightly more than -1.59 percent from CDEV’s current share price.

The stock is currently hovering around the first support level of $13.02. Below this, the next support is placed in the zone of $12.84. Till the time, the CDEV stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 51.53 on daily chart, which may remain a cause for concern. If the price breaks below $12.84 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $13.4 mark may result into a pull-back move towards $13.6 level.

On 10th of January, Centennial Resource Development, Inc. (NASDAQ:CDEV) shares ended lower after a volatile session. The shares dropped -0.01 points or -0.08 percent at $13.21 with a heavy trade volume of 3.892 million shares. After opening the session at $13.1, the shares went as high as $13.41 and as low as $13.03, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.49 billion and now has 264.33 million shares outstanding. Centennial Resource Development, Inc. (CDEV) stock has lost -9.58 percent of market value in 21 trading days.

CDEV stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.73 a share in the trailing twelve months. The stock’s value has surged 19.87 percent year to date (YTD) against a decline of -34.18 percent in 12 month’s time. The company’s shares still trade -42.86 percent away from its 1-year high of $23.12 and 33.84 percent up from 52-week low of $9.87. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Centennial Resource Development, Inc. (CDEV) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry CDEV operates in has an average P/E of 15.99. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 4.18 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 85 percent is the gross profit margin for Centennial Resource Development, Inc. and operating margin sits at 33.8 percent. Along with this, the net profit margin is 23.9 percent.

Let’s take a look at some insider activity at Centennial Resource Development, Inc. (NASDAQ:CDEV) and see the pattern. The earliest insider trade took place on 06/04/2018. Glyphis George S. gathered a total of 15 thousand shares of company at average share price of $16.79. The total for the purchase was set at $251.85 thousand. After this transaction, the VP, CFO account balance stood at 105.23 thousand shares. The stock lost -21.26 percent since that insider purchase. On 05/25/2018, Jensen Brent P, VP, Chief Accounting Officer, purchased 4.5 thousand shares at a price per share of $17.75. This added 79.88 thousand shares to the insider’s fortune and the stock saw a -25.52 percent retreat in value since the news became public. This transaction left 91.2 thousand shares in the VP, Chief Accounting Officer account.

On 03/08/2018, Director, 10% Owner Rel Us Centennial Holdings, Ll performed a sale transaction worth $419.36 million. This sale at $19.5 each has eliminated 21.51 million shares from the insider’s portfolio position. Meanwhile, shares have recorded -32.21 percent decrease since the transaction was reported. The insider now is left with 78.13 million shares remaining in the account. Riverstone Management Group, L, who performs the Director, 10% Owner job, sold 21.51 million shares for $419.36 million. The disposal occurred on 03/08/2018 was priced at $19.5 per share. The share price plunged -32.21 percent since the reporting date. Riverstone Management Group, L now left with a stake of 78.13 million CDEV stock worth $1032.12 million after the insider selling.