Anadarko Petroleum (NYSE:APC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The brokerage presently has a $65.00 price target on the oil and gas development company’s stock. Zacks Investment Research‘s price target points to a potential upside of 14.22% from the stock’s current price.
According to Zacks, “In the last six months, Anadarko Petroleum's gain was higher than the industry it belongs to. Anadarko Petroleum’s earnings and revenues were higher than expectations in the fourth quarter primarily due to higher oil sales revenues. The company’s premium shale properties, which include the Delaware and Denver-Julesburg basins, and the Deepwater Gulf of Mexico, are expected to be the primary production drivers. Its international assets are also contributing toward the increase in its total production. To focus on high-return assets and achieve capital efficiency, Anadarko Petroleum has been systematically selling its non-core properties. The modifications in laws and regulations, rising expenses and competition from major integrated oil companies pose risks to the stock.”
APC has been the topic of several other research reports. Macquarie raised Anadarko Petroleum from a “neutral” rating to an “outperform” rating and set a $70.00 price objective on the stock in a report on Thursday, February 8th. Morgan Stanley set a $55.00 price objective on Anadarko Petroleum and gave the stock a “hold” rating in a report on Wednesday, October 18th. Jefferies Group reaffirmed a “buy” rating and set a $78.00 price objective on shares of Anadarko Petroleum in a report on Thursday, February 8th. Stifel Nicolaus set a $73.00 price objective on Anadarko Petroleum and gave the stock a “buy” rating in a report on Monday, January 29th. Finally, Scotiabank reaffirmed a “buy” rating and set a $62.00 price objective on shares of Anadarko Petroleum in a report on Wednesday, November 1st. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and twenty have given a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average price target of $68.19.
Anadarko Petroleum (NYSE:APC) last posted its quarterly earnings data on Tuesday, February 6th. The oil and gas development company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.15. Anadarko Petroleum had a negative return on equity of 7.48% and a negative net margin of 3.83%. The firm had revenue of $2.93 billion for the quarter, compared to the consensus estimate of $2.90 billion. During the same quarter in the prior year, the business earned ($0.50) EPS. The business’s revenue for the quarter was up 22.7% compared to the same quarter last year. analysts anticipate that Anadarko Petroleum will post 0.65 earnings per share for the current year.
Anadarko Petroleum declared that its board has initiated a share buyback program on Wednesday, February 7th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the oil and gas development company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.
A number of hedge funds have recently added to or reduced their stakes in APC. Stelac Advisory Services LLC bought a new position in shares of Anadarko Petroleum in the 3rd quarter valued at about $107,000. Fis Group Inc. bought a new position in shares of Anadarko Petroleum in the 3rd quarter valued at about $107,000. Steward Partners Investment Advisory LLC bought a new position in shares of Anadarko Petroleum in the 3rd quarter valued at about $116,000. Cerebellum GP LLC bought a new position in shares of Anadarko Petroleum in the 4th quarter valued at about $131,000. Finally, Resources Investment Advisors Inc. bought a new position in shares of Anadarko Petroleum in the 4th quarter valued at about $142,000. Hedge funds and other institutional investors own 87.82% of the company’s stock.
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About Anadarko Petroleum
Anadarko Petroleum Corporation (Anadarko) is an independent exploration and production company. The Company is engaged in developing, acquiring, and exploring for oil and natural-gas resources. The Company’s segments include Oil and Gas Exploration and Production; Midstream, and Marketing. The Company’s geographical segments include the United States and International.
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