QEP Resources Inc. (QEP) Downgraded by Zacks Investment Research
QEP Resources Inc. (NYSE:QEP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “With natural gas and oil prices remaining weak, QEP's core business – exploration and production – has been facing high degree of volatility. As a result, the company has been able to extract less value for its products. This, in turn, has adversely affected the group’s earnings and cash flows. QEP’s valuation has also been negatively impacted by its natural gas-heavy production mix. Additionally, the energy company's decision to suspend dividend due to market weakness has further contributed to negative outlook by the investors. To make matters worse, QEP halved its 2016 growth plans and plans to rapidly reduce its operating rig count. Given these headwinds, we see QEP as a risky bet that ordinary investors should exit.”
Several other equities analysts also recently weighed in on QEP. Barclays PLC upgraded QEP Resources from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $17.00 to $22.00 in a report on Wednesday, August 3rd. Drexel Hamilton restated a “buy” rating and set a $33.00 price target on shares of QEP Resources in a report on Wednesday, June 22nd. Cantor Fitzgerald restated a “buy” rating on shares of QEP Resources in a report on Wednesday, June 22nd. FBR & Co restated a “marketperform” rating on shares of QEP Resources in a report on Wednesday, July 20th. Finally, Mizuho began coverage on QEP Resources in a report on Wednesday, October 5th. They set a “buy” rating and a $24.00 price target for the company. One research analyst has rated the stock with a sell rating, four have issued a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. The stock has an average rating of “Buy” and an average price target of $22.38.
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QEP Resources (NYSE:QEP) traded up 2.72% during midday trading on Wednesday, reaching $17.77. 2,847,956 shares of the company’s stock traded hands. The stock’s market cap is $4.26 billion. QEP Resources has a one year low of $8.54 and a one year high of $20.96. The stock’s 50 day moving average price is $18.32 and its 200-day moving average price is $17.91.
QEP Resources (NYSE:QEP) last issued its quarterly earnings results on Wednesday, July 27th. The company reported ($0.23) earnings per share for the quarter, beating the consensus estimate of ($0.35) by $0.12. QEP Resources had a negative return on equity of 4.04% and a negative net margin of 67.39%. The firm earned $333.70 million during the quarter, compared to the consensus estimate of $362.17 million. During the same period last year, the company earned $0.09 earnings per share. The company’s revenue was down 41.9% on a year-over-year basis. Equities analysts predict that QEP Resources will post ($1.19) earnings per share for the current year.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. TIAA CREF Investment Management LLC boosted its position in QEP Resources by 110.7% in the first quarter. TIAA CREF Investment Management LLC now owns 1,047,334 shares of the company’s stock worth $14,778,000 after buying an additional 550,264 shares during the last quarter. Prudential Financial Inc. boosted its position in QEP Resources by 14.1% in the first quarter. Prudential Financial Inc. now owns 113,947 shares of the company’s stock worth $1,608,000 after buying an additional 14,100 shares in the last quarter. Franklin Resources Inc. boosted its position in QEP Resources by 44.6% in the first quarter. Franklin Resources Inc. now owns 697,405 shares of the company’s stock worth $9,840,000 after buying an additional 215,000 shares in the last quarter. BlackRock Inc. boosted its position in QEP Resources by 40.1% in the first quarter. BlackRock Inc. now owns 92,902 shares of the company’s stock worth $1,311,000 after buying an additional 26,582 shares in the last quarter. Finally, BlackRock Fund Advisors boosted its position in QEP Resources by 18.2% in the first quarter. BlackRock Fund Advisors now owns 6,982,556 shares of the company’s stock worth $98,524,000 after buying an additional 1,077,086 shares in the last quarter. 87.51% of the stock is currently owned by hedge funds and other institutional investors.
About QEP Resources
QEP Resources, Inc (QEP) is a holding company with two subsidiaries, QEP Energy Company and QEP Marketing Company, which are engaged in two primary lines of business: oil and gas exploration and production (QEP Energy), and oil and gas marketing, operation of a gas gathering system and an underground gas storage facility, and corporate activities (QEP Marketing and Other).
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