Why Centennial Resource Development Stock Dropped Over 6% at the Open Today
Shares of U.S. exploration and production company Centennial Resource Development (NASDAQ: CDEV) fell as much as 6% in the first half hour of trading on Nov. 12. That's not shocking given that oil and natural gas prices were weak in early trading. That said, by around 10:30 a.m. EST energy prices had stabilized and Centennial shares were at about the break-even mark.
There are a couple of big-picture issues here. The first is central to Centennial Resource Development. It is a small and heavily leveraged energy company. Add in a stock price that's soundly in penny-stock territory, and it doesn't take much for a material percentage move in the shares. Thus, even modest market developments can have a material impact on Centennial's stock. In fact, there are times when the stock makes dramatic percentage moves without any news at all.
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Source Fool.com
