Concho Resources Inc. (NYSE:CXO) Cut to “Sell” at Zacks Investment Research
Concho Resources Inc. (NYSE:CXO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “Considering Concho Resources' service cost inflation and the negative sentiment surrounding oil prices, we have turned bearish on the Permian pure play. With rig prices rising on the back of stronger demand and stiff competition putting upward pressure on service costs, the company's margins are set to suffer. As it is, land prices in the Permian are surging, which will again make drilling costly. Crude's renewed decline will hamper Concho Resources' earnings and cash flows. Lack of geographical diversification also keep us worried. Therefore, ahead of its second-quarter results, we see the company as a risky bet that is best avoided at the moment.”
CXO has been the topic of a number of other research reports. Scotiabank set a $156.00 price target on shares of Concho Resources and gave the stock a “buy” rating in a report on Monday, March 27th. Citigroup Inc. cut their price target on shares of Concho Resources from $168.00 to $166.00 and set a “buy” rating on the stock in a report on Thursday, July 13th. ValuEngine upgraded shares of Concho Resources from a “sell” rating to a “hold” rating in a report on Friday, June 2nd. Credit Suisse Group set a $164.00 price target on shares of Concho Resources and gave the stock a “buy” rating in a report on Friday, June 2nd. Finally, BMO Capital Markets reiterated a “buy” rating and set a $180.00 price target on shares of Concho Resources in a report on Thursday, June 22nd. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and sixteen have assigned a buy rating to the company’s stock. Concho Resources has a consensus rating of “Buy” and an average price target of $154.10.
Shares of Concho Resources (NYSE:CXO) traded up 0.58% during mid-day trading on Wednesday, hitting $127.20. 1,128,900 shares of the company’s stock traded hands. The firm has a 50-day moving average of $121.37 and a 200 day moving average of $129.84. Concho Resources has a 52 week low of $112.73 and a 52 week high of $147.55. The company has a market cap of $18.71 billion, a PE ratio of 87.54 and a beta of 1.08.
Concho Resources (NYSE:CXO) last issued its quarterly earnings results on Wednesday, May 3rd. The oil and natural gas company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.18. The company had revenue of $612 million for the quarter, compared to analyst estimates of $607.71 million. Concho Resources had a net margin of 10.60% and a return on equity of 2.44%. Concho Resources’s revenue was up 115.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.05) earnings per share. Equities research analysts predict that Concho Resources will post $1.58 EPS for the current year.
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In other news, Director Lawrence J. Nagy sold 120,000 shares of Concho Resources stock in a transaction dated Wednesday, May 17th. The shares were sold at an average price of $0.27, for a total transaction of $32,400.00. 1.20% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CXO. Quadrature Capital Ltd boosted its position in Concho Resources by 642.6% in the fourth quarter. Quadrature Capital Ltd now owns 35,610 shares of the oil and natural gas company’s stock valued at $4,721,000 after buying an additional 30,815 shares during the period. Kentucky Retirement Systems bought a new position in Concho Resources during the fourth quarter worth $1,405,000. Kentucky Retirement Systems Insurance Trust Fund bought a new position in Concho Resources during the fourth quarter worth $627,000. Macquarie Group Ltd. boosted its position in Concho Resources by 12.4% in the fourth quarter. Macquarie Group Ltd. now owns 12,380 shares of the oil and natural gas company’s stock worth $1,641,000 after buying an additional 1,370 shares during the last quarter. Finally, Chevy Chase Trust Holdings Inc. boosted its position in Concho Resources by 4.7% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 127,726 shares of the oil and natural gas company’s stock worth $16,393,000 after buying an additional 5,684 shares during the last quarter. Institutional investors and hedge funds own 93.05% of the company’s stock.
About Concho Resources
Concho Resources Inc is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s four operating areas include the Northern Delaware Basin, the Southern Delaware Basin, the Midland Basin and the New Mexico Shelf.
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