Taking on analysts’ expectations and winning: ChampionX Corporation (CHX)

ChampionX Corporation (NASDAQ: CHX) stock jumped 1.44% on Wednesday to $27.42 against a previous-day closing price of $27.03. With 0.67 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.49 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $27.55 whereas the lowest price it dropped to was $26.76. The 52-week range on CHX shows that it touched its highest point at $33.65 and its lowest point at $16.64 during that stretch. It currently has a 1-year price target of $35.56. With its current market cap of 5.54 billion, CHX has annualized dividend of $0.34 while the current yield stands at 1.24%. Beta for the stock currently stands at 2.55.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CHX was up-trending over the past week, with a rise of 0.73%, but this was up by 2.50% over a month. Three-month performance dropped to -8.99% while six-month performance fell -11.23%. The stock gained 25.78% in the past year, while it has lost -5.42% so far this year. A look at the trailing 12-month EPS for CHX yields 0.89 with Next year EPS estimates of 2.39. For the next quarter, that number is 0.44. This implies an EPS growth rate of 37.50% for this year and 26.09% for next year. EPS is expected to grow by 31.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -11.90%.

Float and Shares Shorts:

At present, 198.29 million CHX shares are outstanding with a float of 197.74 million shares on hand for trading. On May 14, 2023, short shares totaled 8.81 million, which was 4.45% higher than short shares on Apr 13, 2023. In addition to Mr. Sivasankaran Somasundaram as the firm’s Pres, CEO & Director, Mr. Kenneth M. Fisher serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 101.41% of CHX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.62% of CHX, in contrast to 38.41% held by mutual funds. Shares owned by individuals account for 0.94%. As the largest shareholder in CHX with 10.55% of the stake, BlackRock Fund Advisors holds 20,886,011 shares worth 20,886,011. A second-largest stockholder of CHX, The Vanguard Group, Inc., holds 19,819,167 shares, controlling over 10.01% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in CHX, holding 7,422,065 shares or 3.75% stake. With a 3.13% stake in CHX, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 6,198,513 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.11% of CHX stock, is the second-largest Mutual Fund holder. It holds 6,154,251 shares valued at 166.66 million. Vanguard Small Cap Index Fund holds 2.63% of the stake in CHX, owning 5,196,473 shares worth 140.72 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, CHX reported revenue of $932.57M and operating income of $70.54M. The EBITDA in the recently reported quarter was $97.79M and diluted EPS was $0.13.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CHX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With CHX analysts setting a high price target of $40.00 and a low target of $32.00, the average target price over the next 12 months is $35.56. Based on these targets, CHX could surge 45.88% to reach the target high and rise by 16.7% to reach the target low. Reaching the average price target will result in a growth of 29.69% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Dividends & Yield:

In terms of dividends, CHX has a current ratio of $0.34, which is $0.34 over the trailing 12-months. Dividend yield is another indicator that appeals to many investors, and CHX currently yields $1.13. In the past year, CHX’s dividend yield has been $1.13. Accordingly, CHX has a current buyback yield of $4.06. This was $4.06 for the TTM.

Summary of Insider Activity:

Insiders traded CHX stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 48 over the past year. The total number of shares bought during that period was 652,334 while 606,821 shares were sold.

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