Civitas Resources sees significant stock drop after missing financial targets
- Investors in Civitas Resources suffered losses during the class period from February 27, 2024 to February 24, 2025.
- Civitas Resources reported financial results with significant misses on revenue and earnings estimates, leading to an 18% drop in stock price.
- A class action lawsuit has been initiated allowing affected investors a chance to recover their losses.
In the United States, Robbins Geller Rudman & Dowd LLP has reported that investors in Civitas Resources, Inc. who suffered substantial losses from February 27, 2024, to February 24, 2025, are encouraged to seek appointment as lead plaintiffs in a class action lawsuit against the company. The significant timeframe of the class period indicates widespread investor concern over alleged misleading statements from the company regarding its production capabilities and financial health. On February 24, 2025, Civitas Resources disclosed its financial results for the fourth quarter and the entire year of 2024, revealing a revenue of $1.29 billion. This amount fell short of analysts' expectations by $3.44 million. Additionally, the company reported non-GAAP earnings per share of $1.78 for the quarter, which missed consensus estimates by $0.21 per share. The earnings report highlighted a troubling trend for investors, as Civitas anticipated a year-over-year decline of approximately 4% in oil production, raising concerns about the company's operational viability moving forward. The firm's outlook emphasized increasing challenges, including the need for acquiring additional resources and locations, which could necessitate incurring significant debt or selling off assets. Specifically, Civitas mentioned that low production rates were expected due to natural declines following peak production at the DJ Basin in 2024, further compounded by weather issues and processing downtime. As a result, investors reacted negatively to the news, leading to an over 18% drop in the stock price after the announcement. The securities class action lawsuit is part of a broader response to these troubling financial disclosures. The Private Securities Litigation Reform Act allows any affected investors during the specified class period to seek participation as lead plaintiff in the case against Civitas Resources. Robbins Geller, known for recovering substantial amounts for investors, will guide the lead plaintiff through legal proceedings, supporting claims of misrepresentation and lack of transparency from the company that led to significant financial losses for its shareholders. By July 1, 2025, the deadline for seeking lead plaintiff status is imminent, encouraging more investors to consider whether they will join the growing wave of litigation against Civitas Resources.