Vanguard Natural Resources Downgraded by Wunderlich to Hold (VNR)
Vanguard Natural Resources (NYSE:VNR) was downgraded by stock analysts at Wunderlich from a “buy” rating to a “hold” rating in a report issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $29.00 price target on the stock, down from their previous price target of $34.00. Wunderlich’s price objective would indicate a potential downside of 5.10% from the company’s current price.
The analysts wrote, “Vanguard Natural Resources (VNR) reported 2Q Adj. EBITDA of $97.7mm, missing our and the Street’s estimate of $103mm. Although production at 315Mmcfe/d was in line with our est., low NGL realizations more than offset an 18% sequential rise in production. We believe that lower NGL prices would continue to be a primary headwind for VNR as less than 10% of its NGL production is hedged. Poor liquidity in the NGL market and a backwardated curve would make it even more difficult for VNR to layer on additional NGL hedges. Although VNR has been successful in growing production through acquisitions, a consistently below 1.0x coverage ratio does not warrant it to trade at a significant premium to its peers. Accordingly, we are downgrading the stock to Hold and reducing our price target to $29.”
A number of other firms have also recently commented on VNR. Analysts at Robert W. Baird raised their price target on shares of Vanguard Natural Resources from $31.00 to $33.00 in a research note on Wednesday, July 30th. They now have a “neutral” rating on the stock. Analysts at Citigroup Inc. downgraded shares of Vanguard Natural Resources from a “buy” rating to a “neutral” rating in a research note on Tuesday, July 29th. They now have a $34.00 price target on the stock, up previously from $32.00. Eight analysts have rated the stock with a hold rating and three have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $32.19.
Vanguard Natural Resources (NYSE:VNR) traded down 5.07% during mid-day trading on Wednesday, hitting $29.012. The stock had a trading volume of 2,245,777 shares. Vanguard Natural Resources has a 52-week low of $26.76 and a 52-week high of $33.04. The stock’s 50-day moving average is $31.82 and its 200-day moving average is $30.65. The company has a market cap of $2.349 billion and a price-to-earnings ratio of 391.79.
Vanguard Natural Resources (NYSE:VNR) last posted its quarterly earnings results on Monday, August 4th. The company reported $0.27 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.35 by $0.08. The company had revenue of $161.52 million for the quarter, compared to the consensus estimate of $160.02 million. During the same quarter in the prior year, the company posted $0.27 earnings per share. The company’s quarterly revenue was up 38.4% on a year-over-year basis. Analysts expect that Vanguard Natural Resources will post $1.41 EPS for the current fiscal year.
The company also recently announced a jun 14 dividend, which is scheduled for Thursday, August 14th. Investors of record on Friday, August 1st will be paid a dividend of $0.21 per share. This represents a dividend yield of 7.92%. The ex-dividend date is Wednesday, July 30th.
Vanguard Natural Resources, LLC (NYSE:VNR) is focused on the acquisition and development of oil and natural gas properties in the United States.
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