Callon Petroleum (NYSE:CPE) is demonstrating a promising growth trend as it continues to increase its earnings per share (EPS), a key component of business success. Over the past year, the company's EPS has risen from $13.16 to $15.07, marking a 14% gain that shareholders are likely to appreciate. This is in line with the InvestingPro Tips which highlight the company's consistently increasing earnings per share.
Despite a consistent EBIT margin year on year, the company has seen a slight decrease in revenue. This raises questions about short-term growth prospects and highlights the importance of understanding the reasons behind these results. According to InvestingPro data, the company's revenue growth for the second quarter of 2023 was -9.3%, which could be attributed to the anticipated sales decline mentioned in the InvestingPro Tips.
In an encouraging sign for investors, Callon Petroleum insiders have shown substantial confidence in the company by investing $2.1 million in stock over the last year, without any recorded sales. The largest single acquisition was made by Independent Director Steven Webster, who purchased shares worth $1.5 million at approximately $31.63 each.
Further enhancing investor confidence, insiders collectively hold a considerable shareholding in Callon Petroleum, amounting to $46 million in shares. Although this represents only about 1.7% of the company, it is a significant enough sum to indicate alignment between business leaders and ordinary shareholders. The company's market cap, as reported by InvestingPro, stands at $2510 million.
Adding to positive indicators for the company, CEO Joe Gatto's compensation package is comparatively modest for CEOs at similar-sized companies. In the year up to December 2022, Gatto received total compensation worth $4.2 million, which falls below the average for comparable companies and suggests that leadership is prioritizing shareholder interests.
The combination of profit growth and significant insider shareholding makes Callon Petroleum a prime candidate for investor watchlists and potentially further research. Investors should also be mindful of certain warning signs associated with the company. For instance, InvestingPro Tips indicate that the stock price movements are quite volatile, which is reflected in the -2.69% one-week price total return and -9.46% one-month price total return recorded by InvestingPro.
The insider transactions discussed refer to reportable transactions in the relevant jurisdiction. For more insights and tips, InvestingPro offers additional tips here.
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