Callon Petroleum (CPE) Rating Increased to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Callon Petroleum (NYSE:CPE) from a strong sell rating to a hold rating in a report issued on Monday.

According to Zacks, “Callon Petroleum’s operation is solely focused on the Permian Basin, which is the highest-producing shale play in the United States. The company boasts an impressive footprint (86,000 net acres) throughout the basin. Moreover, unlike most of the explorers in the region, the company is not significantly exposed to Permian bottlenecks as it has reserved pipeline networks to transport roughly 90% of its produced liquid volumes to the local refineries. Also, due to the Ward County acquisition and a strong performance from its Spur area assets, the company’s output is expected to surge in the near future. However, the company’s increasing operating expenses is a concern. In fact, for 2019 LOE is expected to significantly increase. Moreover, in the past few years, the company’s free cash flow remained negative, even though oil price recovered significantly from the 2016 lows. Therefore, the stock warrants a cautious stance.”

Other equities analysts have also issued reports about the company. Tudor Pickering lowered Callon Petroleum from a buy rating to a hold rating in a research note on Friday, December 14th. Capital One Financial raised Callon Petroleum from an equal weight rating to an overweight rating in a research note on Wednesday, January 9th. Barclays lowered Callon Petroleum from an overweight rating to an equal weight rating and reduced their price objective for the company from $14.00 to $10.00 in a research note on Wednesday, January 16th. Cowen began coverage on Callon Petroleum in a research note on Thursday, November 29th. They issued an outperform rating on the stock. Finally, Williams Capital reaffirmed a buy rating and issued a $12.00 price objective on shares of Callon Petroleum in a research note on Monday, February 11th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and sixteen have assigned a buy rating to the stock. The company presently has a consensus rating of Buy and an average target price of $14.29.

CPE opened at $7.93 on Monday. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.71 and a quick ratio of 0.71. The stock has a market capitalization of $1.71 billion, a price-to-earnings ratio of 9.67, a price-to-earnings-growth ratio of 0.78 and a beta of 1.54. Callon Petroleum has a 12 month low of $5.57 and a 12 month high of $14.65.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cipher Capital LP acquired a new position in Callon Petroleum during the 4th quarter worth approximately $72,000. Raymond James Financial Services Advisors Inc. acquired a new position in Callon Petroleum during the 4th quarter worth approximately $73,000. Nisa Investment Advisors LLC lifted its position in Callon Petroleum by 968.0% during the 4th quarter. Nisa Investment Advisors LLC now owns 11,695 shares of the oil and natural gas company’s stock worth $76,000 after acquiring an additional 10,600 shares in the last quarter. CWM Advisors LLC acquired a new position in Callon Petroleum during the 4th quarter worth approximately $88,000. Finally, Balasa Dinverno & Foltz LLC acquired a new position in Callon Petroleum during the 4th quarter worth approximately $88,000.

Callon Petroleum Company Profile

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional onshore, oil, and natural gas reserves in the Permian Basin in West Texas. As of December 31, 2017, its estimated net proved reserves totaled 137.0 million barrel of oil equivalent.

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