HOUSTON—Adam M. Vela, the Senior Vice President and General Counsel of Coterra Energy Inc. (NYSE:CTRA), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission dated November 20, Vela sold 16,435 shares of Coterra Energy's common stock. The shares were sold at an average price of $26.76, resulting in a total transaction value of approximately $439,800.
Following this sale, Vela retains ownership of 72,409 shares of Coterra Energy. The transaction was executed in multiple trades with prices ranging slightly from $26.76 to $26.77, as reported in the filing's footnotes.
Coterra Energy, a company operating in the crude petroleum and natural gas sector, is headquartered in Houston, Texas.
In other recent news, Coterra Energy has been the center of several significant developments. The company 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. Coterra also recently announced a $3.95 billion acquisition of assets from Franklin Mountain Energy and Avant Natural Resources, a move that is expected to strengthen its presence in the Permian Basin.
Truist Securities, Piper Sandler, and Wolfe Research have all adjusted their price targets for Coterra. Truist Securities increased its price target to $33.00, Piper Sandler raised its target to $35.00, and Wolfe Research bumped its target to $32.00, all maintaining positive ratings. However, JPMorgan (NYSE:JPM) lowered its target to $24, maintaining an overweight rating, following an updated financial model.
These acquisitions are anticipated to contribute significantly to oil volumes in 2025 and are projected to be more than 15% accretive to per share discretionary cash flow and free cash flow for the years 2025-2027. Despite operational challenges, Coterra 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 recent developments that investors should take note of.
InvestingPro Insights
In light of Adam M. Vela's recent stock sale, it's worth examining Coterra Energy's current financial position and market performance. According to InvestingPro data, Coterra Energy boasts a market capitalization of $20.38 billion, reflecting its significant presence in the energy sector. The company's P/E ratio stands at 16.61, suggesting a reasonable valuation relative to its earnings.
Coterra Energy has demonstrated strong recent performance, with InvestingPro Tips highlighting a robust return over the last month and three months. This positive momentum is further underscored by the stock trading near its 52-week high, with the current price at 95.57% of that peak.
Despite the insider sale, Coterra Energy maintains a solid financial foundation. An InvestingPro Tip notes that the company's liquid assets exceed its short-term obligations, indicating a healthy balance sheet. Additionally, Coterra operates with a moderate level of debt, which could provide financial flexibility in the volatile energy market.
For income-focused investors, Coterra Energy offers an attractive dividend yield of 3.06%. An impressive InvestingPro Tip reveals that the company has maintained dividend payments for 35 consecutive years, showcasing its commitment to shareholder returns even in challenging market conditions.
While these insights provide valuable context to Vela's stock sale, investors should note that InvestingPro offers 12 additional tips for Coterra Energy, providing a more comprehensive analysis for those seeking to deepen their understanding of the company's prospects.
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