How Cobalt International Energy Stock Has Performed since 4Q16



Underperformance to crude oil

Cobalt International Energy (CIE) reported its 4Q16 earnings before the market opened on March 14, 2017. Excluding one-time items, CIE missed the consensus EPS (earnings per share) estimate by $0.13. Since then, CIE stock has underperformed crude oil (USO) prices. CIE stock has fallen from $0.54 to $0.45, whereas crude oil has risen from $48.40 per barrel to $49.56 per barrel during the same period.

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Did CIE’s peers also underperform?

CIE’s peers Consol Energy (CNX) and Southwestern Energy (SWN) have risen ~4.0% and ~2.0%, respectively, since Cobalt International Energy’s 4Q16 earnings. The underperformance of Cobalt was more evident in light of better performances by oil and gas exploration and production companies (XOP) and the SPDR S&P 500 ETF (SPY).

Medium-term price action

What’s worrisome about CIE stock is its inability to rally despite an ~89.0% rise in crude oil prices since February 2016. CIE stock has fallen from $2.02 to $0.45 despite crude oil prices rising from a low of $26.05 to $49.56 since February, 2016.

Currently, CIE is trading below its 50-day and 200-day moving averages. On April 25, 2017, CIE stock closed at $0.45, while its 50-day and 200-day moving averages were $0.54 and $1.01, respectively. Currently, CIE stock is far below its 200-day moving average.


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