California Resources (NYSE:CRC) Shares Gap Down Following Analyst Downgrade

California Resources Co. (NYSE:CRC) shares dipped early in trading on Wednesday after Barclays revised their price target for the stock from $57.00 to $55.00. The stock closed at $39.17 on the previous day but opened at a lower price of $38.17. Following the initial drop, California Resources shares last traded at $38.71, with a total volume of 95,620 shares exchanged.

A variety of other equity analysts have also weighed in on CRC lately. StockNews.com upgraded California Resources from a "sell" rating to a "hold" rating in a research note issued on November 16. In another report, Capital One Financial raised the shares of California Resources to a "strong-buy" rating on December 9. Furthermore, Truist Financial initiated coverage on California Resources on January 13, assigning a "buy" rating with a price objective of $75.00 for the stock. On January 14, Royal Bank of Canada reaffirmed an "outperform" rating while setting a target price of $70.00. Lastly, JPMorgan Chase & Co. commenced coverage of California Resources on December 20, giving it a "neutral" rating with a price target of $63.00. In summary, three research analysts rated the stock with a hold rating, ten gave a buy rating, and one issued a strong buy rating. According to MarketBeat.com, the stock holds a consensus rating of "Moderate Buy" with a consensus target price of $67.08.

Insider Transactions

In related news, Executive Vice President Omar Hayat sold 16,016 shares of the company on December 12. The shares were sold at an average price of $55.18, bringing the total transaction value to approximately $883,762.88. Post-transaction, Hayat holds 30,940 shares of California Resources, valued at around $1,707,269.20, which marks a 34.11% reduction in his holdings. This sale has been disclosed in a legal filing with the SEC.

Institutional Ownership Trends

Recent activity among institutional investors shows significant buying and selling of shares of CRC. GSA Capital Partners LLP acquired a new stake in California Resources worth $682,000 in the third quarter. Additionally, the Swiss National Bank increased its holdings by 12.7%, owning 121,900 shares valued at $6,396,000 after purchasing an additional 13,700 shares recently. Geode Capital Management LLC also raised its stake by 3.6%, now owning 1,592,663 shares worth $83,583,000 thanks to 55,815 additional shares bought during the third quarter. Natixis Advisors LLC bought into California Resources for the first time in the third quarter with an investment of approximately $579,000. And lastly, State Street Corp expanded its position by 5.1%, bringing their total ownership to 3,449,988 shares valued at $181,021,000. Overall, institutional investors hold 97.79% of the company's stock.

Market Performance

The stock has seen a slight decrease of 0.1%. California Resources currently has a 50-day simple moving average of $49.77 and a 200-day average of $52.12. With a market capitalization of $3.58 billion, the company has a price-to-earnings (P/E) ratio of 6.16, a price-to-earnings growth (PEG) ratio of 1.02, and a beta of 1.06. The company maintains a debt-to-equity ratio of 0.32, along with a current ratio of 0.97 and a quick ratio of 0.89.

Recent Earnings Report

California Resources recently reported its quarterly earnings on March 3. The company posted earnings per share (EPS) of $0.91, which fell short of the consensus estimate of $0.96 by $0.05. The revenue reported was $877 million, whereas analysts had anticipated $901.36 million. California Resources achieved a net margin of 17.43% and a return on equity of 12.16%. Analysts forecasting earnings suggest that the company will post a projected EPS of 3.85 for the current year.

Dividends Announcement

The company announced a quarterly dividend, which will be distributed on March 21. Shareholders on record as of March 10 will receive a dividend of $0.3875 per share. This translates to an annualized dividend of $1.55, reflecting a dividend yield of 3.96%. The ex-dividend date is set for March 10, with a payout ratio of 24.41% related to the dividend.

About California Resources

California Resources Corporation operates as an independent oil and natural gas exploration and production entity, specializing in carbon management in the U.S. The company engages in the exploration, production, and distribution of crude oil, natural gas, and natural gas liquids to various marketers and refineries, ensuring access to transportation and storage facilities.

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