Centennial Resource Development Inc. [NASDAQ: CDEV] plunged by -$1.05 during the normal trading session on Tuesday and reaching a high of $5.69 during the day while it closed the day at $4.83. The company report on March 17, 2021 that Centennial Resource Development, Inc. Announces Pricing of $150.0 Million Exchangeable Senior Notes Offering.
Centennial Resource Development, Inc. (NASDAQ: CDEV) (the “Company” or “Centennial”) announced the pricing of a public offering of $150,000,000 aggregate principal amount of 3.25% exchangeable senior notes due 2028 (the “notes”) of its wholly owned operating subsidiary, Centennial Resource Production, LLC (“CRP”). The notes will be fully and unconditionally guaranteed, on a senior, unsecured basis, by Centennial and its subsidiaries that currently guarantee CRP’s outstanding senior notes. The issuance and sale of the notes are scheduled to settle on March 19, 2021, subject to customary closing conditions. CRP also granted the underwriters of the notes a 30-day option to purchase up to an additional $22,500,000 principal amount of notes, solely to cover over-allotments.
The notes will be senior, unsecured obligations of CRP and will accrue interest at a rate of 3.25% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. The notes will mature on April 1, 2028, unless earlier repurchased, redeemed or exchanged. Before January 3, 2028, noteholders will have the right to exchange their notes only upon the occurrence of certain events. From and after January 3, 2028, noteholders may exchange their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. CRP will settle exchanges by paying or delivering, as applicable, cash, shares of Centennial’s Class A common stock, par value $0.0001 per share (the “common stock”), or a combination of cash and shares of Centennial’s common stock, at CRP’s election. The initial exchange rate is 159.2610 shares of common stock per $1,000 principal amount of notes, which represents an initial exchange price of approximately $6.28 per share of common stock. The initial exchange price represents a premium of approximately 30.0% over the last reported sale price of $4.83 per share of Centennial’s common stock on March 16, 2021. The exchange rate and exchange price will be subject to adjustment upon the occurrence of certain events.
Centennial Resource Development Inc. stock has also loss -1.43% of its value over the past 7 days. However, CDEV stock has inclined by 161.08% in the 3 months of the year. Over the past six months meanwhile, it has gained 742.78% and gained 222.00% year-on date.
The market cap for CDEV stock reached $1.33 billion, with 278.36 million shares outstanding and 181.75 million shares in the current float. Compared to the average trading volume of 8.69M shares, CDEV reached a trading volume of 23656007 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Centennial Resource Development Inc. [CDEV]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CDEV shares is $3.69 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CDEV stock is a recommendation set at 3.10. 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.
Johnson Rice have made an estimate for Centennial Resource Development Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 09, 2021. The new note on the price target was released on February 03, 2021, representing the official price target for Centennial Resource Development Inc. stock. Previously, the target price had yet another raise to $1.80, while Stifel analysts kept a Hold rating on CDEV stock.
The Average True Range (ATR) for Centennial Resource Development Inc. is set at 0.56, with the Price to Sales ratio for CDEV stock in the period of the last 12 months amounting to 2.29. The Price to Book ratio for the last quarter was 0.52, with the Price to Cash per share for the same quarter was set at 0.02. Price to Free Cash Flow for CDEV in the course of the last twelve months was 7.80 with Quick ratio for the last quarter at 0.50.
CDEV stock trade performance evaluation
Centennial Resource Development Inc. [CDEV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.43. With this latest performance, CDEV shares gained by 39.19% in over the last four-week period, additionally plugging by 742.78% over the last 6 months – not to mention a rise of 845.02% 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 CDEV stock in for the last two-week period is set at 56.59, with the RSI for the last a single of trading hit 51.50, and the three-weeks RSI is set at 59.51 for Centennial Resource Development Inc. [CDEV]. The present Moving Average for the last 50 days of trading for this stock 3.35, while it was recorded at 5.45 for the last single week of trading, and 1.55 for the last 200 days.
Centennial Resource Development Inc. [CDEV]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Centennial Resource Development Inc. [CDEV] shares currently have an operating margin of -15.39 and a Gross Margin at -2.84. Centennial Resource Development Inc.’s Net Margin is presently recorded at -117.64.
Return on Total Capital for CDEV is now -2.23, given the latest momentum, and Return on Invested Capital for the company is -17.09. Return on Equity for this stock declined to -23.30, with Return on Assets sitting at -15.24. When it comes to the capital structure of this company, Centennial Resource Development Inc. [CDEV] has a Total Debt to Total Equity ratio set at 41.18. Additionally, CDEV Total Debt to Total Capital is recorded at 29.17, with Total Debt to Total Assets ending up at 26.41. Long-Term Debt to Equity for the company is recorded at 41.05, with the Long-Term Debt to Total Capital now at 29.08.
Reflecting on the efficiency of the workforce at the company, Centennial Resource Development Inc. [CDEV] managed to generate an average of -$4,522,099 per employee. Receivables Turnover for the company is 7.42 with a Total Asset Turnover recorded at a value of 0.13.Centennial Resource Development Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 0.50.
Earnings per share (EPS) analysis for Centennial Resource Development Inc. [CDEV] stock
With the latest financial reports released by the company, Centennial Resource Development Inc. posted -1.99/share EPS, while the average EPS was predicted by analysts to be reported at -0.07/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -2,742.90%. 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 CDEV.
Centennial Resource Development Inc. [CDEV]: Insider Ownership positions
There are presently around $772 million, or 58.30% of CDEV stock, in the hands of institutional investors. The top three institutional holders of CDEV stocks are: RIVERSTONE HOLDINGS LLC with ownership of 83,459,210, which is approximately 0% of the company’s market cap and around 3.90% of the total institutional ownership; PRESCOTT GROUP CAPITAL MANAGEMENT, L.L.C., holding 10,274,689 shares of the stock with an approximate value of $49.63 million in CDEV stocks shares; and VANGUARD GROUP INC, currently with $47.6 million in CDEV stock with ownership of nearly 21.957% of the company’s market capitalization.
Positions in Centennial Resource Development Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 48 institutional holders increased their position in Centennial Resource Development Inc. [NASDAQ:CDEV] by around 15,896,333 shares. Additionally, 38 investors decreased positions by around 5,488,806 shares, while 28 investors held positions by with 138,503,298 shares. The mentioned changes placed institutional holdings at 159,888,437 shares, according to the latest SEC report filing. CDEV stock had 20 new institutional investments in for a total of 3,476,660 shares, while 16 institutional investors sold positions of 736,878 shares during the same period.