Investing

Goldman Sachs Maintains CVR Energy Sell Recommendation

George Maybach

Published: July 25, 2023 11:39 pm

Last Updated: July 26, 2023 12:45 pm

Fintel reports that on July 25, 2023, Goldman Sachs maintained coverage of CVR Energy (NYSE:CVI) with a Sell recommendation.

Analyst Price Forecast Suggests 7.24% Downside

As of July 6, 2023, the average one-year price target for CVR Energy is 32.30. The forecasts range from a low of 29.29 to a high of $35.70. The average price target represents a decrease of 7.24% from its latest reported closing price of 34.82.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for CVR Energy is 8,474MM, a decrease of 21.60%. The projected annual non-GAAP EPS is 3.30.

CVR Energy Declares $0.50 Dividend

On May 1, 2023 the company declared a regular quarterly dividend of $0.50 per share ($2.00 annualized). Shareholders of record as of May 15, 2023 received the payment on May 22, 2023. Previously, the company paid $0.50 per share.

At the current share price of $34.82 / share, the stock’s dividend yield is 5.74%.

Looking back five years and taking a sample every week, the average dividend yield has been 8.68%, the lowest has been 3.97%, and the highest has been 22.80%. The standard deviation of yields is 4.22 (n=152).

The current dividend yield is 0.70 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.36. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -0.38%.

What is the Fund Sentiment?

There are 500 funds or institutions reporting positions in CVR Energy. This is an increase of 39 owner(s) or 8.46% in the last quarter. Average portfolio weight of all funds dedicated to CVI is 0.14%, a decrease of 13.51%. Total shares owned by institutions increased in the last three months by 4.17% to 104,322K shares. The put/call ratio of CVI is 0.30, indicating a bullish outlook.

What are Other Shareholders Doing?

Icahn Carl C holds 71,199K shares representing 70.82% ownership of the company. No change in the last quarter.

IJR – iShares Core S&P Small-Cap ETF holds 2,129K shares representing 2.12% ownership of the company.

Pacer Advisors holds 1,743K shares representing 1.73% ownership of the company. In it’s prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.

XOP – SPDR(R) S&P(R) Oil & Gas Exploration & Production ETF holds 1,316K shares representing 1.31% ownership of the company. In it’s prior filing, the firm reported owning 2,035K shares, representing a decrease of 54.60%. The firm decreased its portfolio allocation in CVI by 7.58% over the last quarter.

Renaissance Technologies holds 1,304K shares representing 1.30% ownership of the company. In it’s prior filing, the firm reported owning 1,001K shares, representing an increase of 23.27%. The firm increased its portfolio allocation in CVI by 32.22% over the last quarter.

CVR Energy Background Information
(This description is provided by the company.)

Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the petroleum refining and marketing business through its interest in CVR Refining and the nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP. CVR Energy subsidiaries serve as the general partner and own 36 percent of the common units of CVR Partners.

This article originally appeared on Fintel