Central Puerto (NYSE:CEPU) Shares Down 3.2% - Here's What Happened

On Friday, shares of Central Puerto S.A. (NYSE:CEPU) experienced a decline of 3.2%. The stock opened as low as $13.25 and was last seen trading at $13.24. During midday trading, approximately 127,363 shares changed hands, which marks a striking 74% decrease from the average daily trading volume of 497,237 shares. The closing price the previous day stood at $13.67.

Investors should take note of some key financial metrics for Central Puerto. The company holds a market capitalization of $1.97 billion, a price-to-earnings ratio of 5.10, and a beta of 1.21. Its quick ratio is at 1.97, while the current ratio is 2.13, indicating a healthy liquidity position. Additionally, Central Puerto maintains a low debt-to-equity ratio of 0.18. The stock's 50-day moving average price rests at $14.16, and the 200-day moving average is considerably lower at $11.16.

Quarterly Earnings Results

Recently, Central Puerto released its quarterly earnings report on November 11th. The company reported earnings of $0.20 per share (EPS) for the quarter, falling short of analysts' expectations, which had estimated a consensus EPS of $0.39, missing by $0.19. Their revenue for the quarter was reported at $185.00 million, also below analyst estimates of $200.26 million. Despite the underperformance, Central Puerto posted a return on equity of 22.76% and a substantial net margin of 56.44%. Analysts predict that Central Puerto will achieve an EPS of 0.63 for the current fiscal year.

Dividend Increase

In a positive development, the company announced an increase in its dividend, with a payment made on December 13th. Shareholders of record as of November 29th received a dividend of $0.3954 per share, which is a significant increase from the previous dividend of $0.07. This new dividend represents a yield of 1.4%, and the company’s dividend payout ratio stands at 14.90%.

Institutional Investor Activity

Several institutional investors have been actively adjusting their positions in Central Puerto. Acadian Asset Management LLC, for instance, took on a new position valued at approximately $320,000 in the second quarter, while Truist Financial Corp also acquired a new stake valued around $161,000. Notably, GAMMA Investing LLC increased its stake by 62.4% during the third quarter, bringing its total ownership to 3,694 shares valued at around $35,000. Other investors, including Financial Management Professionals Inc. and Verition Fund Management LLC, also acquired new positions in Central Puerto during the third quarter. Collectively, institutional investors currently hold 2.97% of the company's stock.

Company Overview

Central Puerto S.A. is engaged in the generation of electric power in Argentina. The company operates through three main segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. Central Puerto utilizes various methods to generate energy, including thermal plants, hydroelectric sources, and wind farms.

Final Thoughts

As readers consider their investment options, it’s worth noting that while Central Puerto has received a "Hold" rating among analysts, other stocks are currently being recommended as better investment opportunities. Investors might want to assess these recommendations carefully.

Stocks, Analysis, Earnings