Stone Energy (NYSE:SGY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday.
According to Zacks, “Over the past year Stone Energy plunged 19.1%, underperforming the industry’s 13.6% decline. We are concerned about Stone Energy’s declining proved crude and natural gas reserves. This because lower expected production amid favorable oil and gas pricing scenario could hurt the company’s free cashflow. Also, growing exploration exposure to the mature, low reserve life and capital intensive GoM shelf is expected to aggravate Stone Energy’s risk profile. However, we appreciate the company’s intention to merge with Talos Energy LLC. The companies will create a leading exploration and production firm with extensive operations in offshore resources. Also, Stone Energy has no current debt and long-term debt decreased drastically since 2016. On top of that, over the aforesaid time period, the company’s cash balances surged, reflecting strong financial strength.”
A number of other brokerages have also issued reports on SGY. BMO Capital Markets restated a “buy” rating and set a $2.75 target price on shares of Stone Energy in a research report on Wednesday, November 15th. National Securities lowered shares of Stone Energy from a “buy” rating to a “neutral” rating in a research report on Tuesday, November 28th. Scotiabank restated a “hold” rating and set a $2.50 target price on shares of Stone Energy in a research report on Tuesday, October 10th. ValuEngine upgraded shares of Stone Energy from a “strong sell” rating to a “sell” rating in a research report on Tuesday, October 31st. Finally, Canaccord Genuity restated a “buy” rating and set a $3.25 target price on shares of Stone Energy in a research report on Thursday, December 14th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the stock. Stone Energy has an average rating of “Hold” and a consensus target price of $9.50.
Stone Energy (NYSE:SGY) last announced its quarterly earnings results on Wednesday, November 1st. The oil and natural gas company reported $0.06 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.31) by $0.37. Stone Energy had a net margin of 68.43% and a return on equity of 590.23%. The business had revenue of $79.53 million for the quarter. During the same quarter last year, the company posted ($0.02) EPS. equities analysts expect that Stone Energy will post -1.17 earnings per share for the current year.
Large investors have recently made changes to their positions in the business. California State Teachers Retirement System acquired a new position in shares of Stone Energy during the 2nd quarter worth approximately $636,000. Teachers Advisors LLC bought a new stake in shares of Stone Energy during the 2nd quarter worth approximately $638,000. TIAA CREF Investment Management LLC bought a new stake in shares of Stone Energy during the 2nd quarter worth approximately $1,572,000. Schwab Charles Investment Management Inc. bought a new stake in shares of Stone Energy during the 2nd quarter worth approximately $1,740,000. Finally, Royce & Associates LP bought a new stake in shares of Stone Energy during the 2nd quarter worth approximately $3,943,000. Hedge funds and other institutional investors own 97.09% of the company’s stock.
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About Stone Energy
Stone Energy Corporation is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company operates in the Gulf of Mexico (GOM) basin. It has leveraged its operations in the GOM conventional shelf and has its reserve base in the prolific basins of the GOM deep water, Gulf Coast deep gas, and the Marcellus and Utica shales in Appalachia.
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