Steve Cohen of Point72 Asset Management bought more than 740,000 shares of C&J Energy Services (CJES, Financial) on Sept. 12, increasing his stake in the company to 6.5 percent, according to GuruFocus’ Real Time Picks.
Point72 has held the stock in C&J Energy since the fourth quarter of 2011. The firm is a revamp of Cohen’s embattled SAC Capital Advisors, which pled guilty to insider trading charges earlier this year.
C&J Energy is a Houston-based firm and an independent provider of hydraulic fracturing, pressure pumping and other oilfield services. In August, it acquired Tiger Cased Hole Services, a provider of cased-hole wireline services, which opened up the West Coast market for C&J Energy. C&J Energy also acquired Nabors Industries which is headquartered in Bermuda.
C&J Energy is currently trading at $27.82, higher than its median P/S valuation at $24.37. Revenue has grown steadily since March, after a stagnant period from June to December 2013.
However, the company’s EBIT per share has declined since 2013 to 2.1. This is despite the rising price of WTI oil over the past two years, which is still expected to decline in price in 2015.
In January, C&J Energy’s price rose above the P/E price in the Peter Lynch chart for the first time since July 2011. The price at the P/E line is 11.7, which suggests C&J Energy’s stock may currently be overvalued.
C&J Energy’s debt-to-equity ratio has fluctuated since 2010 and currently stands at 0.42, which is on par with the oil and gas industry’s current median.
John Keeley (Trades, Portfolio), John Burbank (Trades, Portfolio), and George Soros (Trades, Portfolio) are other gurus who have increased their stakes in C&J Energy since June.
