ConocoPhillips (COP) Trying To Corner The Market?

The ConocoPhillips (NYSE:COP) bulls won the day, but the reality is that the 0.71 points or 1.06 percent advance gave very little definitive technical indication of where the stock could be headed next. On 12 February, the shares traded at $67.45 with a light trade volume of 3.953 million shares. After opening the session at $68.01, the shares went as high as $68.3 and as low as $67.24, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $79.1 billion and now has 1.17 billion shares outstanding. ConocoPhillips (COP) stock has gained 1.6 percent of market value in 21 trading days.

COP stock has a trailing 3-year beta of 1.1, 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 $5.34 a share in the trailing twelve months. The stock’s value has surged 8.18 percent year to date (YTD) against a rise of 29.66 percent in 12 month’s time. The company’s shares still trade -15.94 percent away from its 1-year high of $80.24 and 28.38 percent up from 52-week low of $52.54. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

ConocoPhillips (COP) will probably climb 11.85 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $86 price as 12-month high target. This represents a whopping 27.5 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $75, which represents a return potential of 11.19 percent when compared to the closing price of the stock of $67.45 on Tuesday, February 12. The lowest price target for the stock is $68 — slightly more than 0.82 percent from COP’s current share price.

History has shown that shares in ConocoPhillips have gone up on 20 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of COP’s Q1 earnings on April 25. Analysts are forecasting revenue to suffer decline of -6.1 percent to $8.42B in the fiscal first quarter, while earnings are seen soaring by nearly -32.29 percent to $0.65 per share. It earned $1.13 per share, better than the $1.01, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $10.4B, better than the $10B analysts expected. Earnings are estimated to increase by 51.8 percent this year, 11.61 percent next year and continue to increase by 47.97 percent annually for the next 5 years.

Let’s take a look at some insider activity at ConocoPhillips (NYSE:COP) and see the pattern. The earliest insider trade took place on 09/10/2018. Schwarz Glenda Mae parted with a total of 18.88 thousand shares of company at average share price of $71.15. The total for the sales was set at $1.34 million. After this transaction, the VP & Controller account balance stood at 17.55 thousand shares. The stock lost -6.2 percent since that insider sale. On 08/22/2018, Kelly Janet Langford, SVP & General Counsel, sold 50 thousand shares at a price per share of $72.37. This removed 3.62 million shares from the insider’s fortune and the stock saw a -7.78 percent retreat in value since the news became public. This transaction left 559.13 thousand shares in the SVP & General Counsel account.

On 08/22/2018, Executive Vice President Wallette Don E Jr. performed a sale transaction worth $4.27 million. This sale at $71.87 each has eliminated 59.43 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -7.14 percent decrease since the transaction was reported. The insider now is left with 54.93 thousand shares remaining in the account. Lance Ryan Michael, who performs the Chairman and CEO job, sold 160.06 thousand shares for $11.54 million. The disposal occurred on 08/22/2018 was priced at $72.07 per share. The share price plunged -7.4 percent since the reporting date. Lance Ryan Michael now left with a stake of 107.7 thousand COP stock worth $7.26 million after the insider selling.

The stock is currently hovering around the first support level of $67.03. Below this, the next support is placed in the zone of $66.6. Till the time, the COP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.57 on daily chart, which may remain a cause for concern. If the price breaks below $66.6 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $68.09 mark may result into a pull-back move towards $68.72 level.

Shares of ConocoPhillips (COP) are trading at a P/E ratio of 12.51 times earnings reported for the past 12 months. The industry COP operates in has an average P/E of 9.13. Its P/E ratio went as low as 11.71X and as high as 14.99 over the 5-year span.Further, it is sporting a 2.16 on the Price-to-Sales ratio. Compare this with the industry average P/S of 79.36. 46.6 percent is the gross profit margin for ConocoPhillips and operating margin sits at 17.3 percent. Along with this, the net profit margin is 12.4 percent.