Taking a Fresh Look at Centennial Resource Development, Inc. (CDEV)

Centennial Resource Development, Inc. (CDEV) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Pipelines. The stock has been active on the tape, currently trading at $17.38, up from yesterday’s close by 2.24%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Centennial Resource Development, Inc. (CDEV) currently trades with a market capitalization of $4.65 Billion. That value represents a market adjusting for revenues that have been growing by 253.37 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$886.53 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.21 on a per share basis this quarter. Perhaps, that suggests something about why 0.85% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Centennial Resource Development, Inc. recorded a 52-week high of $22.14. It is now trading 4.76% off that level. The stock is trading $18.23 its 50-day moving average by 0.85%. The stock carved out a 52-week low down at $14.10.

In recent action, Centennial Resource Development, Inc. (CDEV) has made a move of -11.15% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 6.97% with $183.33 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CDEV.

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