RBC Capital Releases a Buy Rating on Calpine Corp

By Carrie Williams

In a report released yesterday, Shelby Tucker from RBC Capital reiterated a Buy rating on Calpine Corp (NYSE: CPN), with a price target of $14. The company’s shares closed yesterday at $10.88, close to its 52-week low of $10.39.

According to TipRanks.com, Tucker is a 4-star analyst with an average return of 4.4% and a 73.5% success rate. Tucker covers the Utilities sector, focusing on stocks such as Pinnacle West Capital Corp, Public Service Enterprise, and American Electric Power.

Calpine Corp has an analyst consensus of Strong Buy, with a price target consensus of $15.33.

Based on Calpine Corp’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $1.75 billion and quarterly net profit of $24 million. In comparison, last year the company earned revenue of $1.33 billion and had a GAAP net loss of $47 million.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CPN in relation to earlier this year. Most recently, in November 2016, Benjamin Moreland, a Director at CPN bought 50,000 shares for a total of $554,000.

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Calpine Corp. engages in the operation of natural gas-fired and geothermal power plants. It operates through the following segments: West, Texas, and East. The West segment includes the operation of the transmission grid within the bulk of California and providing open, nondiscriminatory transmission services. The Texas segment manages electric grid. The East segment operates a day-ahead and real-time wholesale energy market. The was founded by Peter Cartwright in June 1984 and is headquartered in Houston, TX.