Crestwood Equity Partners LP (CEQP) Sees Shares Jump over 900% After Reverse 1:10 Split


Crestwood Equity Partners LP (NYSE:CEQP) shares are trading up in early trading after the company announced that it has completed a 1-for-10 reverse split on common shares. While the increase in share price seems quite positive, its jump can be attributed almost entirely to the split.

The reverse split reduces the number of oustanding common unit shares from about 685.5 million to just 68.6 million. The previous announcement of this move has caused larger than normal volume for this stock in the days leading up to this effective date.

The stock is up 933.68% or $18.02 after the positive news, hitting $19.95 per share. About 110,066 shares traded hands. CEQP has declined 71.32% since April 22, 2015 and is downtrending. It has underperformed by 70.31% the S&P500.

Out of 2 analysts covering Crestwood Equity (NYSE:CEQP), 0 rate it “Buy”, 1 “Sell”, while 1 “Hold”. This means 0 are positive. $4 is the highest target while $2.50 is the lowest. The $3.25 average target is -83.71% below today’s ($19.95) stock price. Crestwood Equity was the topic in 2 analyst reports since August 17, 2015 according to StockzIntelligence Inc. Bank of America downgraded the stock on October 8 to “Underperform” rating.

The institutional sentiment increased to 1.03 in Q2 2015. Its up 0.39, from 0.64 in 2015Q1. The ratio increased, as 11 funds sold all Crestwood Equity Partners LP shares owned while 26 reduced positions. 15 funds bought stakes while 23 increased positions. They now own 111.99 million shares or 5.30% less from 118.25 million shares in 2015Q1.

First Reserve Gp Xi Inc. holds 24.93% of its portfolio in Crestwood Equity Partners LP for 49.19 million shares. Fic Capital Inc owns 459,763 shares or 1.09% of their US portfolio. Moreover, Eagle Global Advisors Llc has 0.34% invested in the company for 3.19 million shares. The Illinois-based Advisory Research Inc has invested 0.33% in the stock. Hite Hedge Asset Management Llc, a Massachusetts-based fund reported 227,319 shares.

Crestwood Equity Partners LP develops, acquires, owns and operates primarily assets and activities within the energy midstream sector. The company has a market cap of $1.44 billion.