There Is Still Room For CenterPoint Energy Inc. (CNP) to Improve Its Value – Let’s Wait for Clarity

The closing price of CenterPoint Energy Inc. (NYSE: CNP) was $28.69 for the day, up 1.70% from the previous closing price of $28.21. In other words, the price has increased by $+0.48 from its previous closing price. On the day, 4671275 shares were traded. CNP stock price reached its highest trading level at $28.88 during the session, while it also had its lowest trading level at $28.38.

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Our analysis of CNP’s different ratios will help us gain a deeper understanding of the company. For the most recent quarter (mrq), Quick Ratio is recorded 0.70 and its Current Ratio is at 0.90. In the meantime, Its Debt-to-Equity ratio is 1.82 whereas as Long-Term Debt/Eq ratio is at 1.60.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Guggenheim on January 23, 2023, Downgraded its rating to Neutral and sets its target price to $32 from $31 previously.

On April 26, 2022, Credit Suisse started tracking the stock assigning a Outperform rating and target price of $34.Credit Suisse initiated its Outperform rating on April 26, 2022, with a $34 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Nov 07 when Smitherman Barry T bought 8,005 shares for $28.38 per share. The transaction valued at 227,167 led to the insider holds 20,534 shares of the business.

Smitherman Barry T sold 16,347 shares of CNP for $510,576 on May 05. The Director now owns 12,529 shares after completing the transaction at $31.23 per share.

Valuation Measures:

As of this moment, CenterPoint’s Price-to-Earnings (P/E) ratio for their current fiscal year is 17.96, and their Forward P/E ratio for the next fiscal year is 17.75. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.96 while its Price-to-Book (P/B) ratio in mrq is 1.95.

Stock Price History:

Over the past 52 weeks, CNP has reached a high of $33.50, while it has fallen to a 52-week low of $25.03. The 50-Day Moving Average of the stock is 29.35, while the 200-Day Moving Average is calculated to be 29.91.

Shares Statistics:

CNP traded an average of 3.60M shares per day over the past three months and 4.75M shares per day over the past ten days. A total of 629.00M shares are outstanding, with a floating share count of 628.70M. Insiders hold about 0.20% of the company’s shares, while institutions hold 93.10% stake in the company. Shares short for CNP as of Jan 12, 2023 were 9.53M with a Short Ratio of 9.50M, compared to 12.25M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.51% and a Short% of Float of 1.71%.

Dividends & Splits

With its trailing 12-month dividend rate of 0.74, CNP has a forward annual dividend rate of 0.76. Against a Trailing Annual Dividend Yield of 2.62%, it implies a Forward Annual Dividend Yield of 2.62%. The stock’s 5-year Average Dividend Yield is 3.53. The current Payout Ratio is 43.70% for CNP, which recently paid a dividend on Mar 08, 2023 with an ex-dividend date of Feb 14, 2023. Stock splits for the company last occurred on Sep 30, 2002 when the company split stock in a 1000:843 ratio.

Earnings Estimates

The firm’s stock currently is rated by 12 analysts. On average, analysts expect EPS of $0.29 for the current quarter, with a high estimate of $0.3 and a low estimate of $0.28, while EPS last year was $0.36. The consensus estimate for the next quarter is $0.56, with high estimates of $0.85 and low estimates of $0.47.

Analysts are recommending an EPS of between $1.4 and $1.37 for the fiscal current year, implying an average EPS of $1.38. EPS for the following year is $1.49, with 16 analysts recommending between $1.51 and $1.47.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 6 analysts. It ranges from a high estimate of $2.3B to a low estimate of $1.63B. As of the current estimate, CenterPoint Energy Inc.’s year-ago sales were $2.31B, an estimated decrease of -14.10% from the year-ago figure. For the next quarter, 4 analysts are estimating revenue of $2.79B, an increase of 0.90% over than the figure of -$14.10% in the same quarter last year. There is a high estimate of $2.86B for the next quarter, whereas the lowest estimate is $2.65B.

A total of 11 analysts have provided revenue estimates for CNP’s current fiscal year. The highest revenue estimate was $8.94B, while the lowest revenue estimate was $8.12B, resulting in an average revenue estimate of $8.6B. In the same quarter a year ago, actual revenue was $8.35B, up 3.00% from the average estimate. Based on 11 analysts’ estimates, the company’s revenue will be $8.78B in the next fiscal year. The high estimate is $9.13B and the low estimate is $8.42B. The average revenue growth estimate for next year is up 2.00% from the average revenue estimate for this year.