QEP Resources Inc. (QEP) Downgraded to “Sell” at 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 report issued to clients and 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 have also recently commented on QEP. Evercore ISI started coverage on shares of QEP Resources in a research report on Friday, October 7th. They issued a “hold” rating and a $22.00 target price for the company. Goldman Sachs Group Inc. started coverage on shares of QEP Resources in a research report on Thursday, October 6th. They issued a “neutral” rating and a $21.00 target price for the company. Mizuho started coverage on shares of QEP Resources in a research report on Wednesday, October 5th. They issued a “buy” rating and a $24.00 target price for the company. Barclays PLC upgraded shares of QEP Resources from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $17.00 to $22.00 in a research report on Wednesday, August 3rd. Finally, KLR Group restated a “buy” rating and issued a $32.00 target price (up from $31.00) on shares of QEP Resources in a research report on Tuesday, August 2nd. One investment analyst has rated the stock with a sell rating, four have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $22.38.
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Shares of QEP Resources (NYSE:QEP) traded up 2.08% during trading on Wednesday, reaching $17.66. 2,566,130 shares of the company’s stock were exchanged. QEP Resources has a 52-week low of $8.54 and a 52-week high of $20.96. The stock’s market cap is $4.23 billion. 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 data on Wednesday, July 27th. The company reported ($0.23) earnings per share for the quarter, topping the consensus estimate of ($0.35) by $0.12. QEP Resources had a negative net margin of 67.39% and a negative return on equity of 4.04%. The business earned $333.70 million during the quarter, compared to analysts’ expectations of $362.17 million. During the same quarter in the previous year, the company earned $0.09 EPS. The business’s revenue was down 41.9% on a year-over-year basis. On average, equities research analysts forecast that QEP Resources will post ($1.19) EPS for the current year.
Several large investors have recently bought and sold shares of the stock. Creative Planning raised its stake in QEP Resources by 0.6% in the third quarter. Creative Planning now owns 32,954 shares of the company’s stock worth $644,000 after buying an additional 200 shares in the last quarter. IBM Retirement Fund raised its stake in QEP Resources by 1.0% in the second quarter. IBM Retirement Fund now owns 21,811 shares of the company’s stock worth $385,000 after buying an additional 207 shares in the last quarter. Cipher Capital LP raised its stake in QEP Resources by 0.5% in the second quarter. Cipher Capital LP now owns 50,100 shares of the company’s stock worth $884,000 after buying an additional 235 shares in the last quarter. Suntrust Banks Inc. raised its stake in QEP Resources by 9.4% in the second quarter. Suntrust Banks Inc. now owns 13,533 shares of the company’s stock worth $237,000 after buying an additional 1,167 shares in the last quarter. Finally, Capstone Asset Management Co. raised its stake in QEP Resources by 8.6% in the second quarter. Capstone Asset Management Co. now owns 15,027 shares of the company’s stock worth $265,000 after buying an additional 1,190 shares in the last quarter. 87.51% of the stock is currently owned by institutional investors.
QEP Resources Company Profile
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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