Market cap of Covanta Holding Corporation [CVA] reaches 1.23B – now what?

Covanta Holding Corporation [NYSE: CVA] price surged by 0.54 percent to reach at $0.05. The company report on August 24, 2020 that Covanta Holding Corporation Announces Tax Exempt Bond Refinancing.

Covanta Holding Corporation (NYSE: CVA) (“Covanta” or the “Company”) today announced that it has entered into a loan agreement with the National Finance Authority (New Hampshire) under which they agreed to issue $129.4 million in new tax exempt bonds (the “Series 2020 bonds”) to refinance certain outstanding bonds issued in 2015. The Series 2020 bonds bear interest at a weighted average coupon of 3.71% and are subject to mandatory tender for purchase in 2040. The new bonds are unsecured obligations of Covanta Holding Corporation and are not guaranteed by any of our subsidiaries, whereas the refunded bonds were guaranteed by our subsidiary, Covanta Energy LLC. Descriptions of both series of bonds are listed below.

The transaction lowers the weighted average coupon on the bonds by over 145 basis points, and as a result of the removal of our subsidiary guarantee, also reduces the leverage ratio under our senior secured credit facilities on a pro forma basis.

A sum of 1447525 shares traded at recent session while its average daily volume was at 946.88K shares. Covanta Holding Corporation shares reached a high of $9.385 and dropped to a low of $9.17 until finishing in the latest session at $9.26.

The one-year CVA stock forecast points to a potential upside of 16.35. The average equity rating for CVA stock is currently 2.40, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Covanta Holding Corporation [CVA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CVA shares is $11.07 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CVA stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Stifel have made an estimate for Covanta Holding Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 03, 2020. While these analysts kept the previous recommendation, UBS dropped their target price from $14 to $13. The new note on the price target was released on May 13, 2020, representing the official price target for Covanta Holding Corporation stock. Previously, the target price had yet another raise from $6.50 to $9.50, while Stifel kept a Hold rating on CVA stock. On April 15, 2020, analysts decreased their price target for CVA shares from 17.50 to 6.50.

The Average True Range (ATR) for Covanta Holding Corporation is set at 0.28, with the Price to Sales ratio for CVA stock in the period of the last 12 months amounting to 0.66. The Price to Book ratio for the last quarter was 4.37, with the Price to Cash per share for the same quarter was set at 0.29. Price to Free Cash Flow for CVA in the course of the last twelve months was 72.59 with Quick ratio for the last quarter at 1.00.

CVA Stock Performance Analysis:

Covanta Holding Corporation [CVA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.93. With this latest performance, CVA shares dropped by -2.63% in over the last four-week period, additionally sinking by -36.83% over the last 6 months – not to mention a drop of -43.61% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CVA stock in for the last two-week period is set at 39.88, with the RSI for the last a single of trading hit 31.79, and the three-weeks RSI is set at 44.61 for Covanta Holding Corporation [CVA]. The present Moving Average for the last 50 days of trading for this stock 9.54, while it was recorded at 9.38 for the last single week of trading, and 11.42 for the last 200 days.

Insight into Covanta Holding Corporation Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Covanta Holding Corporation [CVA] shares currently have an operating margin of +5.03 and a Gross Margin at +11.55. Covanta Holding Corporation’s Net Margin is presently recorded at +0.53.

Return on Total Capital for CVA is now 3.17, given the latest momentum, and Return on Invested Capital for the company is 0.34. Return on Equity for this stock inclined to 2.32, with Return on Assets sitting at 0.26. When it comes to the capital structure of this company, Covanta Holding Corporation [CVA] has a Total Debt to Total Equity ratio set at 682.98. Additionally, CVA Total Debt to Total Capital is recorded at 87.23, with Total Debt to Total Assets ending up at 69.13. Long-Term Debt to Equity for the company is recorded at 674.73, with the Long-Term Debt to Total Capital now at 86.18.

Reflecting on the efficiency of the workforce at the company, Covanta Holding Corporation [CVA] managed to generate an average of $2,500 per employee. Receivables Turnover for the company is 6.23 with a Total Asset Turnover recorded at a value of 0.49.Covanta Holding Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.


With the latest financial reports released by the company, Covanta Holding Corporation posted 0.1/share EPS, while the average EPS was predicted by analysts to be reported at 0.09/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 11.10%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CVA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Covanta Holding Corporation go to 15.00%.

Covanta Holding Corporation [CVA] Insider Position Details

There are presently around $913 million, or 82.40% of CVA stock, in the hands of institutional investors. The top three institutional holders of CVA stocks are: CHAI TRUST CO LLC with ownership of 12,949,182, which is approximately 0% of the company’s market cap and around 1.30% of the total institutional ownership; VANGUARD GROUP INC, holding 11,422,007 shares of the stock with an approximate value of $105.77 million in CVA stocks shares; and BLACKROCK INC., currently with $76.68 million in CVA stock with ownership of nearly 2.52% of the company’s market capitalization.

120 institutional holders increased their position in Covanta Holding Corporation [NYSE:CVA] by around 11,647,835 shares. Additionally, 130 investors decreased positions by around 11,173,641 shares, while 32 investors held positions by with 75,823,135 shares. The mentioned changes placed institutional holdings at 98,644,611 shares, according to the latest SEC report filing. CVA stock had 36 new institutional investments in for a total of 4,170,923 shares, while 55 institutional investors sold positions of 5,072,754 shares during the same period.

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