CVR Energy (CVI) Stock: What Alaska’s Big Investment and Analyst ‘Sell’ Mean for You
Here’s a quick look at what’s happening with CVR Energy Inc. (NYSE:CVI) stock right now:
- The State of Alaska Department of Revenue recently increased its stake in CVR Energy Inc. (NYSE:CVI) by 7.4%.
- Institutional investors own nearly 99% of CVR Energy’s stock, showing significant interest from major players.
- Despite this institutional buying, Wall Street analysts generally rate CVI stock a “Strong Sell,” with an average price target of $26.75.
- CVR Energy (CVI) reported a Q2 EPS of ($0.23), missing analyst expectations, alongside negative profitability metrics.
- The company operates in essential but volatile sectors: petroleum refining and nitrogen fertilizer manufacturing.
When big investors make moves, it often sparks curiosity. Recently, the State of Alaska Department of Revenue significantly boosted its holdings in CVR Energy Inc. (NYSE:CVI), an integrated oil and gas company that also produces nitrogen fertilizer. This kind of institutional shift, coupled with mixed signals from financial analysts and recent earnings reports, paints a really interesting picture for anyone watching CVR Energy stock. Let’s break down what these developments mean and what you should keep in mind.
Why is Alaska’s Revenue Department increasing its stake in CVR Energy (NYSE:CVI)?
The State of Alaska Department of Revenue showed strong confidence in CVR Energy Inc. (NYSE:CVI) during the second quarter, raising its stake by a notable 7.4%. This meant acquiring an additional 1,411 shares, bringing their total to 20,351 shares valued at about $545,000. For many, a substantial investment from a governmental entity like this suggests belief in the long-term potential of the energy sector, especially for companies like CVR Energy involved in key areas such as petroleum refining and nitrogen fertilizer production. It often acts as a signal for other investors to take a closer look at CVR Energy stock, hinting at stable, growth-oriented opportunities.
Which institutional investors are buying or selling CVR Energy (CVI) stock?
Beyond Alaska’s increased holdings, the broader institutional landscape for CVR Energy Inc. shows a lot of activity, with a significant 98.88% of its stock owned by institutional investors and hedge funds. Here’s a snapshot of recent adjustments:
- Matrix Trust Co: Acquired a new stake of $26,000 in the second quarter.
- Harbor Capital Advisors Inc.: Increased its position by 65.5% in the first quarter, now holding 1,633 shares worth $32,000.
- Caitong International Asset Management Co. Ltd: Boosted its holdings by a massive 1,030.2% in the first quarter, reaching 1,944 shares valued at $38,000.
- GAMMA Investing LLC: Increased its holdings by 106.6% in the first quarter, now owning 2,159 shares worth $42,000.
- CWM LLC: Significantly increased its position by 304.2% in the first quarter, now holding 2,676 shares valued at $52,000.
These diverse moves highlight that institutional investors have varied investment approaches towards CVR Energy (CVI) stock. Tracking these changes, often through resources like HoldingsChannel.com, can give individual investors insight into how “smart money” views the company and the wider energy market.
What do Wall Street analysts say about CVR Energy (CVI) stock’s price target and rating?
Despite the noticeable institutional interest, Wall Street analysts have a less sunny outlook on CVR Energy (NYSE:CVI), with a prevailing “Strong Sell” consensus. This contrasting view between institutional buying and analyst recommendations is worth exploring:
- Scotiabank: Raised its price target from $21.00 to $25.00 but kept a “sector underperform” rating in July.
- Raymond James Financial: Lowered its rating from “market perform” to “underperform” in July.
- UBS Group: Set a higher target price of $37.00 in September.
- Mizuho: Reaffirmed an “underperform” rating and slightly increased its price target from $27.00 to $29.00 in September.
- Weiss Ratings: Reissued a “sell (d+)” rating.
MarketBeat.com data shows that CVR Energy stock currently has one “Hold” and five “Sell” ratings, averaging a price target of $26.75. This suggests that while some institutions might see long-term value, many analysts are cautious about its immediate future due to factors like company fundamentals, industry outlook, and economic conditions. Investors should weigh these expert opinions carefully as part of their own research.
How does CVR Energy’s financial health and performance look for investors?
Taking a closer look at CVR Energy Inc.’s financial health is key to understanding its stock’s potential. Recently, CVI stock opened at $36.86, with its 50-day simple moving average at $30.99 and its 200-day simple moving average at $26.09, which can give clues about price trends.
Here are some key financial indicators:
- Market Cap: $3.71 billion, representing the total value of its outstanding shares.
- Price-to-Earnings Ratio (P/E): -11.10. A negative P/E usually means the company had negative earnings in the last year, which aligns with its recent Q2 results.
- Beta: 1.25. This indicates that CVR Energy stock tends to be more volatile than the broader market.
- Liquidity Ratios:
- Quick Ratio: 0.75. This measures how well the company can cover short-term debts with its most liquid assets; a ratio below 1 hints at potential liquidity issues.
- Current Ratio: 1.17. This shows the company’s ability to cover short-term liabilities with current assets, still indicating a tight liquidity position.
- Debt-to-Equity Ratio: 2.78. This high ratio means the company uses a lot of debt to finance its operations, which can increase financial risk for investors.
With a 12-month low of $15.10 and a high of $38.30, CVR Energy Inc. has seen significant price swings. This volatility emphasizes the need for thorough research and risk management when considering an investment strategy for CVI stock.
What were CVR Energy’s Q2 earnings, and what do they mean for its future?
CVR Energy Inc.’s second-quarter earnings report, released on July 30th, presented a mixed bag, largely missing analyst expectations. The oil and gas company reported an Earnings Per Share (EPS) of ($0.23), significantly below the consensus estimate of ($0.08). This indicates a dip in profitability, a key concern for many.
On the revenue side, CVR Energy brought in $1.76 billion, slightly above analyst estimates. However, this was a 10.5% decrease year-over-year, suggesting a contraction in sales compared to the same period last year.
Other insights into its financial performance include:
- Negative Return on Equity: -18.11%, meaning it’s not generating profit from shareholder investments.
- Negative Net Margin: -4.63%, indicating the company is losing money after all expenses.
Looking ahead, analysts generally forecast an EPS of -0.12 for the current fiscal year, suggesting continued challenges for profitability in the near term. Investors need to seriously consider these financial results when evaluating CVR Energy stock.
What are CVR Energy Inc.’s main business segments and their market impact?
To fully grasp CVR Energy Inc.’s market standing, it’s helpful to look at its two core business areas:
- Petroleum Segment: This involves petroleum refining and marketing, producing products like gasoline, diesel fuel, and crude oil. This segment is highly sensitive to changes in crude oil prices, refining margins, and overall demand. Global economics and regulations play a huge role here.
- Nitrogen Fertilizer Segment: This segment manufactures nitrogen fertilizers, driven by demand from the agricultural sector, which is influenced by crop prices and weather. While it can offer stability, it’s also subject to commodity price volatility and environmental regulations.
Operating in these two segments theoretically gives CVR Energy Inc. some resilience, allowing one segment to potentially offset downturns in the other. However, both are commodity-driven, meaning their profitability can swing with market cycles. This dual structure is a critical part of CVR Energy’s investment strategy.
How has CVR Energy (CVI) stock performed, and what are its key market indicators?
CVR Energy stock is known for its volatility, typical of companies in the energy and commodity sectors. Recent trading saw NYSE:CVI open at $36.86, with a modest 1.2% increase on a recent Thursday, showing its sensitivity to market sentiment.
Here are some key market indicators for the stock:
- 50-day Simple Moving Average: $30.99. This short-term indicator helps traders spot trends.
- 200-day Simple Moving Average: $26.09. This longer-term indicator gives a broader trend view and often signals support or resistance. The current price being above both can be seen as a positive technical sign.
- 12-Month Low and High: The stock has traded between a low of $15.10 and a high of $38.30 over the past year. This wide range highlights its susceptibility to market swings influenced by crude oil prices, refining crack spreads, and fertilizer demand.
Investors adding CVI stock to their portfolios should be ready for these price fluctuations. Global economic outlook, energy policies, and supply chain issues all contribute to the stock performance of companies like CVR Energy Inc. Understanding these drivers is crucial for informed decision-making.
What should CVR Energy (CVI) shareholders consider next?
The story of CVR Energy Inc. (NYSE:CVI) is a fascinating blend of institutional confidence and analyst caution. While big players like the State of Alaska are increasing their stock holdings, Wall Street analysts are largely issuing “Strong Sell” ratings. The company operates in vital, yet volatile, sectors like petroleum refining and nitrogen fertilizer, and recently reported Q2 earnings that missed expectations, alongside a high debt-to-equity ratio.
For current and potential shareholders, navigating these mixed signals requires a balanced view. Institutional buying might signal a belief in the long-term value of CVR Energy’s assets or a strategic move based on future commodity markets. Conversely, analyst warnings often stem from immediate financial performance, valuation concerns, and broader economic challenges.
To make smart choices, consider these steps:
- Dig Deeper: Don’t just skim headlines. Review SEC filings, earnings call transcripts, and independent financial analyses.
- Watch Industry Trends: Keep an eye on global crude oil prices, refining margins, and the agricultural markets impacting fertilizer prices.
- Stay Updated on Analyst Revisions: Current “Strong Sell” ratings can change quickly with new information.
- Know Your Risk: Given CVR Energy’s volatility and financial ratios, CVI stock might be a better fit for investors with a higher risk tolerance.
Staying informed is key. For more detailed insights into what other hedge funds are holding CVI, resources like HoldingsChannel.com provide the latest 13F filings and insider trades. Continuously learning and accessing comprehensive data empowers you to make well-informed decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial professional before making any investment decisions.
Authoritative Resources:
- Investopedia: A leading resource for financial education.
- Reuters Markets: Global news and data on stocks and markets.
- U.S. Securities and Exchange Commission (SEC): Official source for public company filings.
