Analysts React to Sudden Slide in CenterPoint Energy Shares

At least two firms downgraded their views on CNP stock

Nov 15, 2019 at 9:51 AM
facebook twitter linkedin

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%.

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners