Investors Purchase Large Volume of Call Options on Covanta (NYSE:CVA)

Covanta Holding Co. (NYSE:CVA) was the target of unusually large options trading activity on Thursday. Traders bought 3,641 call options on the company. This is an increase of approximately 1,300% compared to the average daily volume of 260 call options.

Several institutional investors and hedge funds have recently added to or reduced their stakes in CVA. Norges Bank purchased a new position in shares of Covanta during the 4th quarter valued at $93,980,000. Peregrine Capital Management LLC lifted its stake in Covanta by 72.4% in the 4th quarter. Peregrine Capital Management LLC now owns 1,464,057 shares of the energy company’s stock worth $19,223,000 after purchasing an additional 614,661 shares in the last quarter. BlackRock Inc. lifted its stake in Covanta by 6.3% in the 4th quarter. BlackRock Inc. now owns 8,332,583 shares of the energy company’s stock worth $109,407,000 after purchasing an additional 492,283 shares in the last quarter. Fuller & Thaler Asset Management Inc. lifted its stake in Covanta by 5.8% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 6,297,482 shares of the energy company’s stock worth $82,686,000 after purchasing an additional 342,581 shares in the last quarter. Finally, Morgan Stanley lifted its stake in Covanta by 68.8% in the 4th quarter. Morgan Stanley now owns 793,034 shares of the energy company’s stock worth $10,413,000 after purchasing an additional 323,201 shares in the last quarter. Institutional investors own 72.73% of the company’s stock.

CVA has been the subject of a number of research analyst reports. Zacks Investment Research raised shares of Covanta from a “hold” rating to a “buy” rating and set a $16.00 target price for the company in a research report on Monday, March 15th. Raymond James reaffirmed a “hold” rating on shares of Covanta in a research report on Monday, February 22nd. Finally, Barclays lifted their target price on shares of Covanta from $12.00 to $16.00 and gave the stock an “overweight” rating in a research report on Friday, January 29th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Covanta has an average rating of “Buy” and a consensus price target of $13.90.

Shares of Covanta stock traded up $0.09 on Thursday, hitting $13.71. 15,340 shares of the company’s stock were exchanged, compared to its average volume of 916,620. The company has a 50-day simple moving average of $14.06 and a 200-day simple moving average of $12.75. The stock has a market capitalization of $1.81 billion, a PE ratio of -64.85 and a beta of 1.48. Covanta has a 1 year low of $6.57 and a 1 year high of $15.56. The company has a debt-to-equity ratio of 8.93, a quick ratio of 1.11 and a current ratio of 1.11.

Covanta (NYSE:CVA) last issued its quarterly earnings results on Wednesday, February 17th. The energy company reported $0.09 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.01) by $0.10. The business had revenue of $491.00 million for the quarter, compared to analysts’ expectations of $487.47 million. Covanta had a negative net margin of 1.48% and a negative return on equity of 9.01%. During the same quarter last year, the company posted $0.09 EPS. On average, analysts expect that Covanta will post -0.31 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, April 9th. Investors of record on Thursday, March 25th were paid a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 2.33%. The ex-dividend date was Wednesday, March 24th. Covanta’s dividend payout ratio (DPR) is 457.14%.

About Covanta

Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and internationally. It owns and operates infrastructure for the conversion of waste to energy (WtE), as well as engages in related waste transport and disposal, and other renewable energy generation businesses.

See Also: What Are Cryptocurrencies?

Receive News & Ratings for Covanta Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Covanta and related companies with MarketBeat.com's FREE daily email newsletter.