Energy & Mining

Big Move for Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Clean Diesel Technologies, Inc. (NASDAQ:CDTI) stock rocketed up over 28% in Friday’s trading on the back of over 5 million shares traded – over 35 times the stock’s 30-day, daily average. The Thursday close of $1.65 was just $0.13 above the 52-week low of $1.52 which was hit in August. However, CDTI shares are still over 43% below their 52-week high of $3.72 that was hit last May.

Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Clean Technologies Business Model

Clean Diesel Technologies, Inc. (NASDAQ:CDTI) is a global manufacturer and distributor of heavy duty diesel and light duty vehicle emissions control systems and products to major automakers and retrofitters. Accordingly, their business is largely moved by legislation addressing global emission standards in response to government concerns over the effects of fossil fuel usage.

The company has two revenue producing channels. Their Heavy Duty Diesel Systems Division specializes in the design and manufacture of verified exhaust emission control solutions. Their Catalyst Division produces catalyst formulations for gasoline, diesel and natural gas-induced emissions.

CDTI Stock

Clean Diesel Technologies, Inc. (NASDAQ:CDTI) has a market capitalization under $50 million and CDTI is considered a micro-cap stock. However they have considerable sales revenues for a company their size although the figures have been declining. In 2012, Clean Diesel Technologies, Inc. (NASDAQ:CDTI) reported sales of $60.5 million. That number has declined year-on-year and for 2016 the reported figure was just $36.8 million. Earnings have not been pleasant for the investors either. In 2012 the loss was (-$6.71) per share. That figure shrank each of the successive three years and in 2015 the per share loss was only (-$2.67). Unfortunately, the loss expanded in 2016 to (-$3.84). Dilution has also weighed on CDTI stockholders. The number of outstanding shares has increased from 1.45 million in 2012 to 6.11 million in 2016.

The consensus target price for CDTI stock is $3.00 – around 48% higher than where the shares are currently valued.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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