Stock of the Day: Is Selling Calpine Corporation Here a Winning Strategy?

Stock of the Day: Is Selling Calpine Corporation Here a Winning Strategy?

The stock of Calpine Corporation (NYSE:CPN) hit a new 52-week low and has $10.85 target or 7.00% below today’s $11.67 share price. The 9 months bearish chart indicates high risk for the $4.20 billion company. The 1-year low was reported on Oct, 28 by Barchart.com. If the $10.85 price target is reached, the company will be worth $294.00M less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 7.64 million shares traded hands or 51.29% up from the average. Calpine Corporation (NYSE:CPN) has declined 16.75% since March 28, 2016 and is downtrending. It has underperformed by 21.46% the S&P500.

Analysts await Calpine Corporation (NYSE:CPN) to report earnings on November, 4. They expect $0.72 EPS, down 25.77% or $0.25 from last year’s $0.97 per share. CPN’s profit will be $259.13M for 4.05 P/E if the $0.72 EPS becomes a reality. After $0.06 actual EPS reported by Calpine Corporation for the previous quarter, Wall Street now forecasts 1,100.00% EPS growth.

Calpine Corporation (NYSE:CPN) Ratings Coverage

Out of 13 analysts covering Calpine Corporation (NYSE:CPN), 10 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 77% are positive. Calpine Corporation has been the topic of 24 analyst reports since July 31, 2015 according to StockzIntelligence Inc. On Tuesday, August 25 the stock rating was maintained by Deutsche Bank with “Buy”. The rating was maintained by Citigroup on Tuesday, March 29 with “Buy”. The stock of Calpine Corporation (NYSE:CPN) has “Outperform” rating given on Tuesday, February 16 by RBC Capital Markets. Suntrust Robinson maintained the shares of CPN in a report on Wednesday, August 24 with “Neutral” rating. As per Monday, March 7, the company rating was maintained by SunTrust. The company was initiated on Friday, September 18 by Citigroup. On Wednesday, August 24 the stock rating was maintained by SunTrust with “Neutral”. The stock of Calpine Corporation (NYSE:CPN) has “Hold” rating given on Tuesday, March 8 by Argus Research. RBC Capital Markets maintained the shares of CPN in a report on Monday, August 3 with “Outperform” rating. On Friday, January 29 the stock rating was initiated by Guggenheim with “Buy”.

According to Zacks Investment Research, “CALPINE CORPORATION is helping meet the needs of an economy that demands more and cleaner sources of electricity. Calpine is a major U.S. power company, capable of delivering nearly 24,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 18 states in the U.S. The company owns, leases and operates low-carbon, natural gas-fired and renewable geothermal power plants. Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves.”

Insitutional Activity: The institutional sentiment decreased to 0.65 in 2016 Q2. Its down 0.34, from 0.99 in 2016Q1. The ratio fall, as 51 funds sold all Calpine Corporation shares owned while 110 reduced positions. 24 funds bought stakes while 81 increased positions. They now own 328.39 million shares or 1.19% more from 324.54 million shares in 2016Q1.
Round Table Svcs Limited Com holds 80,500 shares or 0.67% of its portfolio. North Star Inv accumulated 0% or 300 shares. Moreover, Blackrock Fund Advsr has 0.01% invested in Calpine Corporation (NYSE:CPN) for 3.84 million shares. The Delaware-based Dupont Management has invested 0.05% in Calpine Corporation (NYSE:CPN). Evanson Asset Mngmt Ltd Com holds 0.05% of its portfolio in Calpine Corporation (NYSE:CPN) for 11,008 shares. First Quadrant Limited Partnership Ca reported 42,500 shares or 0.01% of all its holdings. Federated Pa, a Pennsylvania-based fund reported 15,290 shares. Loomis Sayles L P last reported 0.08% of its portfolio in the stock. First Republic Investment has 0.01% invested in the company for 41,307 shares. Concert Wealth reported 10,515 shares or 0.02% of all its holdings. Moreover, American Insur Tx has 0.14% invested in Calpine Corporation (NYSE:CPN) for 158,375 shares. Corsair Capital Management Limited Partnership has 1.26% invested in the company for 562,535 shares. Blackrock Gp Ltd has 3.09M shares for 0.02% of their US portfolio. Amp Capital Invsts holds 0.01% or 95,723 shares in its portfolio. The Georgia-based Advisory Serv Ntwk Ltd Liability Company has invested 0.01% in Calpine Corporation (NYSE:CPN).

Insider Transactions: Since May 31, 2016, the stock had 0 insider purchases, and 5 selling transactions for $8.00 million net activity. Shares for $3.47M were sold by Fusco Jack A.

More news for Calpine Corporation (NYSE:CPN) were recently published by: Streetinsider.com, which released: “Calpine Corporation (CPN) Tops Q3 EPS by 4c” on October 28, 2016. Streetinsider.com‘s article titled: “Calpine Corporation (CPN) to Acquire NAES in ~$900M Deal” and published on October 10, 2016 is yet another important article.

CPN Company Profile

Calpine Corporation, incorporated on June 27, 1996, is a power generation company. The Firm is engaged in the ownership and operation of primarily natural gas-fired and geothermal power plants in North America. The Company’s divisions include West (including geothermal), Texas and East (including Canada). In the Northeast and Mid-Atlantic regions, the Company has generating units capable of burning either natural gas or fuel oil. The Firm operates its business through various divisions and subsidiaries.

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