Analysts React to Sudden Slide in CenterPoint Energy Shares

At least two firms downgraded their views on CNP stock

by Josh Selway

Published on Nov 15, 2019 at 9:51 AM

Utilities stock CenterPoint Energy, Inc. (NYSE:CNP) fell sharply yesterday, closing the session down 5% amid heavy trading volume to hit a fresh 52-week low. It's not entirely clear what was behind the selling, but a number of bear notes have come through since yesterday's close.

Last evening Credit Suisse downgraded CNP stock to "neutral" from "outperform," and SunTrust Robinson followed suit this morning by cutting its view on the shares to "hold" from "buy." A couple other price-target cuts have come through, as well, including Mizuho's $2 cut to $28.50. Before all this, analysts were largely bullish, with nine of the 12 in coverage recommending to investors to buy the shares.

Options traders have been jumping on puts recently, meaning they may be betting on more downside for the equity. For example, the 10-day put/call volume ratio is 1.55 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), a number that ranks in the 83rd annual percentile, showing unusual demand for long puts in the last two weeks.

Looking closer at the charts, CenterPoint is selling off again today, down 5% at $25.36, already hitting another annual low of $25.15. This brings the security's November losses to more than 12%.

a schaeffer's exclusive

PLAY TRENDS LIKE A PRO!

5 tips to leverage profits in this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.
Roller Coaster Week Defined by Trade Headlines, Jobs Report
The Dow made outsized moves in both directions this week
Needham is Buying Trade Desk Ahead of the 2020 Election
Trade Desk stock has more than doubled in 2019
The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.