How Is Cobalt Stock Performing after Its 1Q17 Results?



Cobalt International’s stock price

Cobalt International Energy (CIE) announced its 1Q17 earnings on May 8, 2017, before the market opened. For 1Q17, excluding one-time items, Cobalt International missed the consensus EPS (earnings per share) estimate by $0.02. Since releasing these earnings, the company has seen its stock fall from $0.31 to $0.26 in three trading sessions.

Since its 1Q17 earnings, Cobalt International Energy is underperforming crude oil (USO). In the past three days, crude prices have risen from $46.22 per barrel to $47.33 per barrel during the same period.

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Peer performances

CIE’s peers Consol Energy (CNX) and Murphy Oil (MUR) have risen ~3% and ~5%, respectively, since Cobalt’s 1Q17 earnings. The stock’s underperformance was more evident in light of the better performances by the oil and gas exploration and production peers (XOP) and the S&P 500 ETF (SPY).

Medium-term price action

What’s worrisome for some about Cobalt’s stock price is its apparent inability to rally, despite the ~82% rise in crude oil prices since February 2016. The stock has fallen $2.02 to $0.26 since then, though crude oil prices have moved from a low of $26.05 to $47.33 during that period.

CIE is now trading below its 50-day and 200-day moving averages. On May 10, 2017, CIE stock closed at $0.26, while its 50-day and 200-day moving averages stand at $0.45 and $0.95, respectively. This means that CIE’s stock price is stretched significantly below its 200-day moving average.

Now let’s examine short interest in CIE.


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