Here’s Why Callon Petroleum Company (CPE) is up Big Today

The biggest gainers of the session on the Wall Street include Callon Petroleum Company (NYSE:CPE), which rose 0.1 points or 2.55% to trade at $4.22 as last check. The stock closed last session at $4.12 and sets an active trading volume day with a reported 1875973 contracts so far this session. CPE shares had a relatively better volume day versus average trading capacity of 17.92 million shares, but with a 0.39 billion float and a -6.79% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CPE stock indicates that the average analyst price target is $7.87 per share. This means the stock has a potential increase of 86.49% from where the CPE share price has been trading recently.

During the recent trading session for Callon Petroleum Company (NYSE:CPE), the company witnessed their stock drop by $-0.14 over a week and tumble down $-0.52 from the price 20 days ago. When compared to their established 52-week high of $8.55, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 05/02/19. The recent low of $3.51 stood for a -50.58% since 11/21/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.61 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Callon Petroleum Company, the two-week RSI stands at 42.36. This figure suggests that CPE stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CPE readings is similarly very revealing as it has a stochastic reading of 19.12% at this stage. This figure means that CPE share price today is being overbought.

Technical chart claims that Callon Petroleum Company (CPE) would settle between $4.16/share to $4.2/share level. However, if the stock price goes below the $4.07 mark, then the market for Callon Petroleum Company becomes much weaker. If that happens, the stock price might even plunge as low as $4.03 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.2. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Johnson Rice lowered their recommendation on shares of CPE from Buy to Accumulate in their opinion released on November 19. Williams Capital Group analysts again handed out a Buy recommendation to Callon Petroleum Company (NYSE:CPE) stock but they lifted target price for the shares in a flash note issued to investors on July 16. The target price has been raised from $12 to $10. Analysts at Imperial Capital are sticking to their In-line stance. However, on July 16, they lifted price target for these shares to $11 from $16.

CPE equity has an average rating of 2.21, with the figure leaning towards a bullish end. 18 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 16 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 16 analysts rated Callon Petroleum Company (NYSE:CPE) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, CPE stock price is currently trading at 3.48X forward 12-month Consensus EPS estimates, and its P/E ratio is 3.9 while for the average stock in the same group, the multiple is 15.9. Callon Petroleum Company current P/B ratio of 0.7 means it is trading at a discount against its industry’s 1.3.

Callon Petroleum Company (CPE)’s current-quarter revenues are projected to climb by nearly 4.4% to hit $169090, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over 9.9% from $587620 to a noteworthy $645560. At the other end of the current quarter income statement, Callon Petroleum Company is expected to see its adjusted earnings surge by roughly 11.8% to hit $0.19 per share. For the fiscal year, CPE’s earnings are projected to climb by roughly -8.9% to hit $0.72 per share.