CenterPoint Energy (CNP), a prominent electric and natural gas utility company, is scheduled to pay dividends on June 08, 2023. Dividends provide an attractive opportunity for investors seeking regular income from their stock holdings. In this article, we will explore the upcoming dividend payment by CNP, its significance for investors, and an interesting pair trading opportunity with Pair Trader Electric Utilities, Services, Real Estate, Precious Metals (TA).
On June 08, 2023, CenterPoint Energy (CNP) is set to distribute a dividend of $0.19 per share. The record date for this dividend is also June 08, 2023, meaning shareholders who are registered on this date will receive the dividend. However, it's crucial to note that the ex-dividend date is on May 17, 2023, several business days before the record date.
The ex-dividend date is significant for investors as it determines whether they will be eligible to receive the upcoming dividend. If an investor purchases CNP shares on or after the ex-dividend date (May 17, 2023), they will not receive the dividend payment. Instead, the dividend amount is retained by the seller of the shares. On the other hand, if an investor buys CNP shares before the ex-dividend date, they become eligible to receive the dividend.
Pair trading is a popular trading strategy that involves taking both long and short positions in two correlated instruments to benefit from their relative performance. In this case, we can explore a pair trading opportunity with Pair Trader Electric Utilities, Services, Real Estate, Precious Metals (TA).
Pair trading involves analyzing the historical price relationship between two instruments and taking advantage of any deviations from their usual correlation. By going long on one stock and short on the other, traders can profit from the convergence of their prices.
To execute a pair trade involving CNP and TA, traders would need to conduct in-depth analysis of the price movements, historical correlations, and fundamental factors affecting these stocks. A quantitative approach using statistical models, such as cointegration and mean reversion, can be employed to identify optimal entry and exit points for the trade.
The 10-day moving average for CNP crossed bearishly below the 50-day moving average on May 19, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 02, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on CNP as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CNP turned negative on April 26, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
CNP moved below its 50-day moving average on May 15, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CNP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CNP entered a downward trend on May 30, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CNP's RSI Indicator exited the oversold zone, of 17 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for CNP moved above the 200-day moving average on May 19, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CNP advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
CNP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CNP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.859) is normal, around the industry mean (1.722). P/E Ratio (22.371) is within average values for comparable stocks, (42.564). Projected Growth (PEG Ratio) (2.423) is also within normal values, averaging (2.849). Dividend Yield (0.026) settles around the average of (0.051) among similar stocks. P/S Ratio (1.909) is also within normal values, averaging (3.357).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of power generation and electrical distribution services
A.I.dvisor indicates that over the last year, CNP has been closely correlated with AEE. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if CNP jumps, then AEE could also see price increases.