In the preceding three months, 5 analysts have released ratings for Callon Petroleum (NYSE:CPE), presenting a wide array of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 4 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 1 | 0 | 1 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $38.8, a high estimate of $44.00, and a low estimate of $32.00. Experiencing a 13.3% decline, the current average is now lower than the previous average price target of $44.75.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive Callon Petroleum is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Nitin Kumar | Mizuho | Lowers | Neutral | $38.00 | $40.00 |
| Derrick Whitfield | Stifel | Lowers | Hold | $32.00 | $44.00 |
| Nitin Kumar | Mizuho | Announces | Neutral | $40.00 | - |
| Derrick Whitfield | Stifel | Lowers | Buy | $44.00 | $54.00 |
| Devin Ryan | Morgan Stanley | Lowers | Equal-Weight | $40.00 | $41.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Callon Petroleum. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Callon Petroleum compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Callon Petroleum's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Callon Petroleum's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Callon Petroleum analyst ratings.
Unveiling the Story Behind Callon Petroleum
Callon Petroleum Company engages in the exploration, development, acquisition, and production of oil and natural gas. Activities are primarily conducted in the Permian Basin region of West Texas and southeastern New Mexico. Callon relies heavily on the latest horizontal production techniques to extract hydrocarbon products from its assets, with crude oil accounting for over half of production. Historically, a handful of marketing and trading companies have accounted for the majority of the sales for Callon's oil and gas production. Assets are acquired through the drilling of emerging zones on existing acreage but also by acquiring additional locations through leasehold purchases, leasing programs, joint ventures, and asset swaps.
Unraveling the Financial Story of Callon Petroleum
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Negative Revenue Trend: Examining Callon Petroleum's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -25.91% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.
Net Margin: Callon Petroleum's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 19.29%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.23%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Callon Petroleum's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.8%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Callon Petroleum's debt-to-equity ratio is below the industry average at 0.5, reflecting a lower dependency on debt financing and a more conservative financial approach.
The Significance of Analyst Ratings Explained
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.