CVR Energy (NYSE:CVI) Shares Gap Down – Here’s Why

CVR Energy Inc. (NYSE:CVI)’s share price gapped down prior to trading on Tuesday. The stock had previously closed at $55.92, but opened at $51.06. CVR Energy shares last traded at $50.6810, with a volume of 300,685 shares.

Trending Headlines about CVR Energy

Here are the key news stories impacting CVR Energy this week:

• Positive Sentiment: CVR Energy reported third-quarter EPS of $4.00, exceeding the $2.91 analyst consensus, while revenue rose 68.8% year over year to $3.28 billion, well above the $2.35 billion estimate. The results indicate substantially stronger operating performance than the prior-year quarter, when EPS was $0.40. CVR Energy quarterly earnings press release
• Positive Sentiment: The company agreed to acquire Marathon Petroleum’s St. Paul Park, Minnesota, and Mandan, North Dakota, refineries in a transaction valued at approximately $4.2 billion. The deal would significantly expand CVR’s refining footprint and could increase scale and regional market access if successfully integrated. Marathon beats estimates and agrees to sell refineries to CVR Energy
• Neutral Sentiment: The acquisition comes amid stronger conditions for U.S. refiners, with global conflicts supporting refined-product sales. However, the ultimate benefit will depend on purchase financing, refining margins and CVR’s ability to integrate the two assets. Carl Icahn’s CVR Energy near refinery deal
• Negative Sentiment: Investors may be concerned that a roughly $4.2 billion transaction is very large relative to CVR’s approximately $5.3 billion market capitalization. The added capital requirements, leverage, execution risk and exposure to cyclical refining margins appear to be offsetting the positive earnings surprise and contributing to the stock’s decline. Marathon refinery sale to CVR Energy

Analyst Upgrades and Downgrades

CVI has been the topic of several analyst reports. Zacks Research raised shares of CVR Energy from a “hold” rating to a “strong-buy” rating in a report on Friday, October 16th. The Goldman Sachs Group lifted their target price on CVR Energy from $36.00 to $50.00 and gave the company a “sell” rating in a research note on Friday, October 9th. Mizuho boosted their target price on shares of CVR Energy from $29.00 to $52.00 and gave the stock an “underperform” rating in a report on Thursday, October 8th. Wall Street Zen upgraded CVR Energy from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 10th. Finally, UBS Group raised their price objective on CVR Energy from $35.00 to $53.00 and gave the company a “neutral” rating in a report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, CVR Energy presently has a consensus rating of “Reduce” and an average target price of $45.75.

CVR Energy Price Performance

The company has a quick ratio of 0.92, a current ratio of 1.42 and a debt-to-equity ratio of 2.38. The stock has a market capitalization of $4.87 billion, a PE ratio of 71.62 and a beta of 0.90. The company has a 50-day moving average of $52.63 and a 200 day moving average of $35.76.

CVR Energy (NYSE:CVI) last announced its quarterly earnings data on Tuesday, November 3rd. The oil and gas company reported $4.00 earnings per share for the quarter, beating analysts’ consensus estimates of $2.91 by $1.09. The company had revenue of $3.28 billion for the quarter, compared to analyst estimates of $2.35 billion. CVR Energy had a negative return on equity of 15.21% and a net margin of 0.81%. The firm’s revenue for the quarter was up 68.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.40 EPS. Sell-side analysts predict that CVR Energy Inc. will post 4.20 EPS for the current year.

Hedge Funds Weigh In On CVR Energy

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Sterling Capital Management LLC lifted its stake in CVR Energy by 851.4% in the third quarter. Sterling Capital Management LLC now owns 999 shares of the oil and gas company’s stock worth $51,000 after acquiring an additional 894 shares during the last quarter. Nykredit A S acquired a new stake in CVR Energy during the second quarter worth approximately $29,000. EverSource Wealth Advisors LLC lifted its position in shares of CVR Energy by 44.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,102 shares of the oil and gas company’s stock worth $37,000 after buying an additional 339 shares during the last quarter. PNC Financial Services Group Inc. lifted its position in shares of CVR Energy by 51.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,142 shares of the oil and gas company’s stock worth $38,000 after buying an additional 388 shares during the last quarter. Finally, Farther Finance Advisors LLC lifted its position in shares of CVR Energy by 197.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 1,153 shares of the oil and gas company’s stock worth $59,000 after buying an additional 765 shares during the last quarter. Hedge funds and other institutional investors own 98.88% of the company’s stock.

About CVR Energy

CVR Energy, Inc (NYSE:CVI) is a diversified energy company engaged primarily in petroleum refining and nitrogen fertilizer production. Through its refining operations, the company processes crude oil into transportation fuels and other refined products, including gasoline, diesel fuel, jet fuel and asphalt.

CVR Energy operates refineries in Coffeyville, Kansas, and Wynnewood, Oklahoma. The facilities primarily serve customers in the Midcontinent region of the United States and are supported by related logistics and distribution assets.