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Saturday, September 30, 2023

Callon Petroleum Company (NYSE:CPE) Stock is Soaring, Here is Why

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Callon Petroleum Company (CPE) shares are trading at higher $10.13 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $8.52.

To add more color to this target, the company’s high over the last year is $49.80 and the low is $3.80. Over the last 52 weeks, CPE is down -73.06% while the S&P 500 is up 15.91%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CPE reported a profit of 629.71 million. Callon Petroleum Company also saw revenues decrease to $290.03 million. In addition, CPE has free cash flow of -$142.55 million as of 09-2020. The company’s EBITDA came in at -$515.07 million which compares well with its peers.

CPE Return on Equity (ROE) is -84.20%, and its Return on Assets is -32.40%. All told, it is clear that, CPE needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CPE has a short ratio of 3.29 and outstanding shares of 39.75M.

Company Outlook

CPE has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 5.64 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -52.01. Callon Petroleum Company CPE also noted assets of $4.91 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CPE has historically followed its peers on positive news.

All told, Callon Petroleum Company CPE has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CPE represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Callon Petroleum Company CPE is now commanding a market cap of 410.77M and a float of 38.65M. CPE is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CPE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CPE, either long or short, and we have not been compensated for this article.

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