Crescent Energy (NYSE:CRGY) Stock Breaks Below Fifty Day Moving Average – Here’s Why

Crescent Energy Company (NYSE:CRGY)’s share price crossed below its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $13.62 and traded as low as $13.41. Crescent Energy shares last traded at $13.4850, with a volume of 8,610,001 shares changing hands.

Key Headlines Impacting Crescent Energy

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

• Positive Sentiment: Crescent reported third-quarter earnings of $0.77 per share, exceeding the $0.59 consensus estimate and rising from $0.35 a year earlier. Revenue of $1.35 billion also topped expectations of $1.24 billion. Crescent Energy Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management characterized the quarter as strong financially and operationally, with attention also focused on cash flow generation. The results provide evidence of improving earnings momentum and were expected to be discussed further on the November 3 conference call. Crescent Energy Reports Strong Third-Quarter Results and Cash Flow
• Neutral Sentiment: Crescent confidentially submitted a draft registration statement for a proposed initial public offering of Crescent Royalties. A separate listing could help establish value for the royalty business and potentially provide capital, but the offering’s size, valuation, timing and ownership structure have not been disclosed. Crescent Royalties Proposed IPO
• Negative Sentiment: Despite the earnings and revenue beats, investors may be concerned that Crescent’s net margin remains low at 1.27%, while its quick and current ratios are below 1. The proposed subsidiary IPO may also add near-term structural uncertainty, helping explain the weaker share-price reaction to otherwise favorable results. Crescent Energy Announces Royalty Subsidiary IPO Filing

Wall Street Analyst Weigh In

Several research firms have issued reports on CRGY. Morgan Stanley downgraded shares of Crescent Energy to an “underweight” rating in a research note on Monday, August 3rd. Evercore reiterated an “outperform” rating on shares of Crescent Energy in a research report on Wednesday, October 14th. Raymond James Financial reissued a “strong-buy” rating on shares of Crescent Energy in a report on Thursday, September 10th. Mizuho upped their target price on Crescent Energy from $15.00 to $16.00 and gave the company a “neutral” rating in a research report on Tuesday, August 4th. Finally, UBS Group decreased their target price on Crescent Energy from $19.00 to $18.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $17.14.

Crescent Energy Price Performance

The company has a market cap of $5.70 billion, a price-to-earnings ratio of -269.65 and a beta of 1.60. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.00. The company’s 50 day moving average price is $13.62 and its 200 day moving average price is $11.98.

Crescent Energy (NYSE:CRGY) last issued its earnings results on Monday, November 2nd. The company reported $0.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.59 by $0.18. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.24 billion. Crescent Energy had a return on equity of 10.52% and a net margin of 1.27%. Equities research analysts forecast that Crescent Energy Company will post 2.03 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Kohlberg Kravis Roberts & Co. L.P. boosted its position in shares of Crescent Energy by 7.1% in the 1st quarter. Kohlberg Kravis Roberts & Co. L.P. now owns 28,655,357 shares of the company’s stock worth $386,847,000 after buying an additional 1,897,230 shares in the last quarter. Dimensional Fund Advisors LP raised its position in Crescent Energy by 2.3% during the first quarter. Dimensional Fund Advisors LP now owns 13,171,033 shares of the company’s stock worth $177,810,000 after acquiring an additional 298,818 shares during the last quarter. Jennison Associates LLC lifted its holdings in shares of Crescent Energy by 74.1% in the first quarter. Jennison Associates LLC now owns 4,254,407 shares of the company’s stock valued at $57,435,000 after purchasing an additional 1,810,225 shares in the last quarter. Cetera Investment Advisers grew its position in shares of Crescent Energy by 5.1% in the first quarter. Cetera Investment Advisers now owns 3,341,779 shares of the company’s stock valued at $45,114,000 after purchasing an additional 163,268 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its position in shares of Crescent Energy by 64.5% in the third quarter. Assenagon Asset Management S.A. now owns 3,251,891 shares of the company’s stock valued at $41,917,000 after purchasing an additional 1,274,787 shares during the last quarter. 52.11% of the stock is owned by hedge funds and other institutional investors.

About Crescent Energy

Crescent Energy Company is an independent energy company focused on the acquisition, development and operation of oil and natural gas properties in the United States. Its activities include exploration and production, well development, production optimization and management of mature and unconventional oil and gas assets.

The company’s portfolio is concentrated in onshore U.S. basins, including the Eagle Ford in South Texas and the Uinta Basin in Utah, along with other producing properties.