ONEOK (NYSE:OKE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “In last 12 months shares of ONEOK have underperformed the industry. ONEOK is subject to strict regulations and intense competition in midstream energy services. Fluctuating weather pattern is also a major concern for the company. However, ONEOK has widespread pipelines and storage facilities in some prolific oil and gas regions of the United States. ONEOK is poised to gain from increased drilling activities in the basin where the company has well-placed assets. The increase in fee-based earnings, acquisition of ONEOK Partners, capital-growth projects and increasing drilling activities from the producers will further boost the performance of the company.”
Several other analysts have also recently weighed in on OKE. BidaskClub cut ONEOK from a “hold” rating to a “sell” rating in a report on Thursday, August 17th. Argus restated a “buy” rating and set a $59.00 price target (up from $55.00) on shares of ONEOK in a report on Thursday, August 24th. Jefferies Group restated a “hold” rating and set a $52.00 price target (up from $51.00) on shares of ONEOK in a report on Friday, September 1st. Barclays started coverage on ONEOK in a report on Tuesday, September 5th. They set an “equal weight” rating and a $58.00 price target on the stock. Finally, J P Morgan Chase & Co restated a “neutral” rating and set a $58.00 price target on shares of ONEOK in a report on Monday, September 11th. One research analyst has rated the stock with a sell rating, nine have given a hold rating and six have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $59.07.
ONEOK (NYSE:OKE) last released its quarterly earnings results on Tuesday, October 31st. The utilities provider reported $0.43 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.49 by ($0.06). The firm had revenue of $2.91 billion for the quarter, compared to the consensus estimate of $2.80 billion. ONEOK had a return on equity of 9.25% and a net margin of 3.76%. During the same quarter last year, the firm posted $0.43 earnings per share. equities analysts forecast that ONEOK will post 1.73 earnings per share for the current fiscal year.
In related news, Director Brian L. Derksen acquired 1,800 shares of the business’s stock in a transaction that occurred on Monday, November 20th. The shares were bought at an average cost of $51.00 per share, with a total value of $91,800.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.00% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in ONEOK by 17.3% in the second quarter. Vanguard Group Inc. now owns 27,197,952 shares of the utilities provider’s stock valued at $1,418,645,000 after buying an additional 4,002,795 shares during the period. BlackRock Inc. lifted its stake in ONEOK by 28.4% in the second quarter. BlackRock Inc. now owns 24,014,654 shares of the utilities provider’s stock valued at $1,252,605,000 after buying an additional 5,317,251 shares during the period. State Street Corp lifted its stake in ONEOK by 53.7% in the second quarter. State Street Corp now owns 17,416,296 shares of the utilities provider’s stock valued at $908,434,000 after buying an additional 6,086,061 shares during the period. Tortoise Capital Advisors L.L.C. lifted its stake in ONEOK by 269.7% in the third quarter. Tortoise Capital Advisors L.L.C. now owns 13,348,843 shares of the utilities provider’s stock valued at $739,659,000 after buying an additional 9,737,701 shares during the period. Finally, Kayne Anderson Capital Advisors LP lifted its stake in ONEOK by 184.7% in the third quarter. Kayne Anderson Capital Advisors LP now owns 9,476,645 shares of the utilities provider’s stock valued at $525,098,000 after buying an additional 6,148,494 shares during the period. 71.02% of the stock is currently owned by hedge funds and other institutional investors.
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ONEOK Company Profile
ONEOK, Inc is an energy midstream service provider in the United States. The Company owns and operates natural gas liquids (NGL) systems, and is engaged in the gathering, processing, storage and transportation of natural gas. THe Company’s operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions.
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