Zacks Investment Research Lowers EOG Resources, Inc. (EOG) to Sell
EOG Resources, Inc. (NYSE:EOG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.
According to Zacks, “EOG Resources has sole exposure to the North American shale plays for which the company will likely allocate its entire capital budget. Business in the continent is most volatile and highly competitive. Hence, lack of exposure to more profitable international resources is a drag for the company. We are also concerned about the explorer’s high debt load. Over the last two years, the company’s long-term debt has risen significantly. Also, in Feb 2016, major credit rating agencies lowered the rating of the company’s long-term bonds. If the business scenario remains unfavorable owing to weak commodity prices, any further rating downgrade will make it difficult for the company to raise debt capital for growth projects.Along with rising debt, the company’s cashflow from core operations has been declining over the last two years. Hence, EOG Resources’ capability to pay dividend in the coming quarters is in question.”
EOG has been the subject of several other research reports. Stifel Nicolaus reissued a “buy” rating and issued a $111.00 price target on shares of EOG Resources in a report on Friday, May 26th. Scotiabank reissued a “hold” rating and issued a $109.00 price target on shares of EOG Resources in a report on Tuesday, May 16th. Credit Suisse Group set a $108.00 price target on EOG Resources and gave the stock a “hold” rating in a report on Friday, June 2nd. Iberia Capital raised their price target on EOG Resources from $109.00 to $119.00 and gave the stock an “outperform” rating in a report on Monday, April 3rd. Finally, Wells Fargo & Company upgraded EOG Resources from a “market perform” rating to an “outperform” rating and set a $110.00 price objective for the company in a research note on Wednesday, May 10th. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and twenty-three have given a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $108.59.
Shares of EOG Resources (NYSE:EOG) traded down 0.45% during trading on Friday, reaching $93.24. The company’s stock had a trading volume of 313,762 shares. EOG Resources has a 12-month low of $78.04 and a 12-month high of $109.37. The stock’s market capitalization is $53.82 billion. The firm’s 50-day moving average is $89.73 and its 200-day moving average is $95.44.
EOG Resources (NYSE:EOG) last issued its quarterly earnings results on Monday, May 8th. The energy exploration company reported $0.15 earnings per share for the quarter, hitting the consensus estimate of $0.15. The business had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.19 billion. EOG Resources had a negative return on equity of 2.69% and a negative net margin of 6.70%. The company’s quarterly revenue was up 92.8% on a year-over-year basis. During the same quarter last year, the company earned ($0.83) earnings per share. Equities analysts expect that EOG Resources will post $0.80 earnings per share for the current year.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in EOG. Waverton Investment Management Ltd increased its position in EOG Resources by 5.2% in the first quarter. Waverton Investment Management Ltd now owns 674,943 shares of the energy exploration company’s stock worth $65,841,000 after buying an additional 33,173 shares during the last quarter. Hills Bank & Trust Co. boosted its stake in shares of EOG Resources by 1.1% in the first quarter. Hills Bank & Trust Co. now owns 19,574 shares of the energy exploration company’s stock worth $1,909,000 after buying an additional 213 shares during the period. Boltwood Capital Management boosted its stake in shares of EOG Resources by 10.8% in the first quarter. Boltwood Capital Management now owns 5,385 shares of the energy exploration company’s stock worth $525,000 after buying an additional 525 shares during the period. Trust Co boosted its stake in shares of EOG Resources by 0.8% in the fourth quarter. Trust Co now owns 3,403 shares of the energy exploration company’s stock worth $344,000 after buying an additional 26 shares during the period. Finally, Atalanta Sosnoff Capital LLC boosted its stake in shares of EOG Resources by 17,593.3% in the first quarter. Atalanta Sosnoff Capital LLC now owns 590,955 shares of the energy exploration company’s stock worth $57,647,000 after buying an additional 587,615 shares during the period. Institutional investors and hedge funds own 84.86% of the company’s stock.
About EOG Resources
EOG Resources, Inc explores for, develops, produces and markets crude oil and natural gas in major producing basins in the United States, The Republic of Trinidad and Tobago, the United Kingdom, The People’s Republic of China, Canada and, from time to time, select other international areas. Its operations are all crude oil and natural gas exploration and production related.
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