HOUSTON—Kevin William Smith, the Senior Vice President and Chief Technology Officer of Coterra Energy Inc. (NYSE:CTRA), a $19.26 billion market cap energy company, has recently sold shares in the company, according to a recent SEC filing. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value estimate. On December 3, Smith sold 29,643 shares of Coterra Energy common stock at an average price of $26.16 per share, totaling approximately $775,460.
Earlier, on November 29, Smith acquired 48,876 shares through the vesting of restricted stock units, which were granted in December 2021. These shares were acquired at no cost as part of his compensation package. However, on the same day, 19,233 shares were withheld by the company to cover tax obligations related to the vesting, valued at an average price of $26.72 per share, totaling $513,905.
Following these transactions, Smith's direct ownership of Coterra Energy shares now stands at 77,075. InvestingPro data reveals that Coterra Energy has maintained dividend payments for 35 consecutive years and generally trades with low price volatility. For detailed insights and additional ProTips about CTRA, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Coterra Energy has made significant strides in its operations, most notably with the announcement of a $3.95 billion acquisition of assets from Franklin Mountain Energy and Avant Natural Resources. The acquisitions are expected to bolster Coterra's presence in the Permian Basin and contribute significantly to oil volumes in 2025. In addition, these acquisitions are projected to be more than 15% accretive to per share discretionary cash flow and free cash flow for the years 2025-2027.
These strategic moves have led to adjustments in the company's stock target by various analyst firms. Truist Securities increased Coterra's price target to $33, citing the positive impact of the acquisitions on the company's financial outlook. Piper Sandler raised its price target to $35, reflecting the incorporation of these acquisitions into their valuation. Wolfe Research also raised its price target to $32, noting potential efficiencies from the acquisitions. However, JPMorgan lowered its target to $24, maintaining an overweight rating.
In terms of financial performance, Coterra reported strong Q3 results, with a net income of $252 million and total production averaging 669 thousand barrels of oil equivalent per day, exceeding their guidance. Despite operational challenges, the company demonstrated increased drilling efficiency and frac pumping hours, indicating a commitment to high-quality projects and disciplined capital allocation. The company also emphasized its dedication to shareholders, returning 96% of free cash flow via dividends and share repurchases, and diversifying its revenue through new LNG sales agreements. These are all recent developments that investors should take note of.
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