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How Is Cobalt Stock Performing after Its 1Q17 Results?

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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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