Cloud Peak Energy Inc. (CLD) Shares Jump 22% on Supreme Court Decision to Halt Obama’s Carbon Emissions Plan


Shares of Cloud Peak Energy Inc. (NYSE:CLD) are soaring this morning after it has been announced that the Supreme Court has halted President Obama’s plan to curb carbon emissions at power plants. The Supreme Court voted 5-4 to to grant a stay to opponents of the Clean Power Plan, and the plan is now on hold, pending a court ruling.

Under Obama’s plan, carbon pollution would be cut 32 percent under the pollution rate from 2005 by 2030. This angers some, particularly those companies such as Cloud Peak Energy (NYSE:CLD) which have built businesses that never took a planned cut in carbon emissions into account. Over 50% of the U.S. states are against this plan, and it appears as though the Supreme Court may be leaning to side with these states. This is only good news for companies like Cloud Peak Energy.

The stock is up 22.45% or $0.33 following the news, hitting $1.8 per share. About 51,799 shares traded hands. CLD has declined 63.79% since July 7, 2015 and is downtrending. It has underperformed the S&P500 by 54.32%.

From a total of 7 analysts covering Cloud Peak Energy (NYSE:CLD) stock, 1 rate it a “Buy”, 2 a “Sell”, and 4 a “Hold”. This means that 14% of the ratings are positive. The highest target price is $5 while the lowest target price is $2. The mean of all analyst targets is $3.16 which is 75.56% above today’s ($1.8) stock price. Cloud Peak Energy was the topic of 9 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. FBR Capital upgraded shares on February 4 to a “Market Perform” rating. FBR Capital initiated shares with a”Underperform” rating and a $2 target share price in their report from a September 18. UBS downgraded CLD stock in a recent report from November 20 to a “Sell” rating. Finally, Macquarie Research maintained the stock with a “Neutral” rating in a report they issued on an October 28.

The institutional sentiment decreased to 0.96 in Q2 2015. It’s down 0.26, from 1.22 in 2015Q2. The ratio is negative, as 34 funds sold all their Cloud Peak Energy Inc. shares they owned while 49 reduced their positions. 26 funds bought stakes while 54 increased their total positions. Institutions now own 68.11 million shares which is 2.62% more than the previous share count of 66.38 million in 2015Q2.

First Trust Bank Ltd. holds 5.01% of its total portfolio in Cloud Peak Energy Inc., equating to 635,100 shares. Towle & Co owns 4.40 million shares representing 2.64% of their total US portfolio. Moreover, Kopernik Global Investors Llc has 1.9% of their total portfolio invested in the company, equating to 3.45 million shares. The Virginia-based Aegis Financial Corp has a total of 1.16% of their portfolio invested in the stock. Adirondack Research & Management Inc., a New York-based fund reported 1.05 million shares owned.

Cloud Peak Energy Inc. is a holding firm that manages its 100% owned subsidiary, Cloud Peak Energy Resources LLC . The company has a market cap of $104.43 million. The Firm is a producer of coal in the United States of America and the Powder River basin (PRB). It currently has negative earnings. The Firm operates in three divisions: Owned and Operated Mines, Logistics and Related Activities, and Corporate and Other.