Why Centennial Resource Development Stock Rose and Then Fell Today
Shares of U.S. exploration and production company Centennial Resource Development (NASDAQ: CDEV) rose about 2.5% out of the gate on July 7. But that quickly turned around, with the stock down more than 5% by around 10:30 a.m. EDT. At roughly 3 p.m. EDT the stock was still down, but only about 2.5%. The ups and downs here make sense when you dig in a little bit.
Early in the day Centennial Resource Development shares benefited from the news that Wells Fargo had upgraded the energy company's target price to $7 per share. The shares closed July 6 at $6.67, so this kind of looks like a move by the analyst to catch up to the market action. Still, the implied upside was around 5%. So the 2.5% price rise in early trading does make a little sense.
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Source Fool.com