The Arizona State Retirement System is making strategic moves in the stock market, with their most recent acquisition being shares of Crescent Energy (NYSE:CRGY). In a 13F filing with the Securities and Exchange Commission, the firm disclosed their new position, which includes 10,712 shares valued at approximately $128,000. This move by the Arizona State Retirement System showcases their ability to make calculated investments in promising companies.
Crescent Energy is an energy company that explores for, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. As of March 7th, Crescent Energy reported quarterly earnings of $1.51 per share which surpasses analysts’ expectations by $0.88 per share.
During the quarter ending March 7th, Crescent Energy reported a net margin of 7.92% and a return on equity of 65.47%. These numbers are impressive especially amidst an economic environment wrought with uncertainty. The company’s revenue during this period also surpassed analyst expectations at $684.76 million compared to the expected revenue of $543 million.
Crescent Energy’s portfolio holds various oil and natural gas assets located in key proven basins across the United States such as the Eagle Ford, Rockies, Barnett Permian Mid-Con and other such basins respectively.
As seen from Crescent Energy’s impressive financial reports coupled with the acquisition made by Arizona State Retirement System’ it can be extrapolated that pressing forward maybe beneficial for prospective investors looking to invest in energy equities going forward despite current pandemonium enhanced by COVID-19 ramifications impacting cross-sectorally across several industries.
As for what lies ahead concerning risk management measures or further revelations on stake incrementations regarding these agents in question remains yet to be seen but it is evident that proactivity could lead to profitability in this ever-shifting financial climate where flexibility reigns supreme as King towards staying competitive on today’s market ecosystem.
Hedge Funds Flock to Crescent Energy, Despite Lowered Expectations
Crescent Energy, an American oil and natural gas company, has attracted the attention of several hedge funds leading to them making significant changes to their positions within the company. Sandia Investment Management LP purchased a position in Crescent Energy valued at roughly $67,000 during the third quarter, while Kohlberg Kravis Roberts & Co. L.P. spent approximately $7,324,000 on new shares. Cantor Fitzgerald L.P and Point72 Asset Management L.P. also splurged on new positions in the company during this period worth $297,000 and $77,000 respectively. Finally, Magnolia Capital Advisors LLC increased its position in Crescent Energy by 41.4% equating to owning 73,300 shares with an estimated worth of $987,000.
Despite these large purchases by hedge funds and institutional investors alike, CRGY’s had a low opening of $9.55 on Friday with a one year high of $18.96 showing that there is still some way for the stock price to rise before reaching previous highs made last year when it was first listed.
Crescent Energy recently announced a quarterly dividend payout which will take place next month where investors will be given a payment of $0.12 per share they own as long as they are investors of record from May 24th.
CRGY made headlines earlier this year due to its volatile stock prices causing many analysts to lower price targets such as Mizuho who dimmed expectations from an initial target price of $19 down to just $18. Meanwhile Truist Financial hope for better from CRGY upgrading its initial price objective to be priced at up from their initial target price by increasing it from just $17 to now be priced at £21 dollars more recently.
In conclusion despite lowering targets by some analysts there remain plenty out there who hold faith in the company that originally went public back in 2012; with Bloomberg.com quoting one seller rating, two hold ratings, and three buy ratings garnering a consensus rating of “Hold” with a consensus target price of $16.33, investors will have to wait and see just what the next step for CRGY entails.
Discussion about this post