EOG Resources (EOG) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research downgraded shares of EOG Resources (NYSE:EOG) from a buy rating to a hold rating in a research note issued to investors on Thursday.

According to Zacks, “Besides being the largest player in the Eagle Ford, EOG Resources also holds significant top tier acreage in Permian, Bakken play and Powder River Basin. In fact, with the recent discovery of Mowry and Niobrara sites in Powder River Basin, the firm has solidified its position and poised itself for greater returns. Moreover, EOG Resources’ healthy financials provides it financial flexibility to tap into growth opportunities. Also, in the third quarter of 2018, the company’s discretionary cash flow surged more than 95% year over year, reflecting strength in its operations.However, the company’s lack of exposure to international resources is a drag. Its Permian operations can also take a hit due to takeaway capacity constraints. Moreover, rising operating expenses possesses threat to its bottom-line. Therefore, the stock warrants a cautious stance.”

A number of other research firms also recently issued reports on EOG. Stephens set a $122.00 price target on EOG Resources and gave the company a hold rating in a research note on Wednesday, July 25th. Piper Jaffray Companies set a $138.00 price target on EOG Resources and gave the company a buy rating in a research note on Sunday, September 30th. Stifel Nicolaus set a $147.00 price target on EOG Resources and gave the company a buy rating in a research note on Friday, August 3rd. Morgan Stanley boosted their price target on EOG Resources from $122.00 to $123.00 and gave the company a hold rating in a research note on Wednesday, September 26th. Finally, BMO Capital Markets restated a buy rating and set a $140.00 price target on shares of EOG Resources in a research note on Thursday, October 11th. Ten analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company’s stock. EOG Resources currently has a consensus rating of Buy and a consensus target price of $137.61.

NYSE:EOG traded down $5.48 during mid-day trading on Thursday, reaching $100.52. The company’s stock had a trading volume of 148,917 shares, compared to its average volume of 4,466,007. EOG Resources has a 12-month low of $96.54 and a 12-month high of $133.53. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.92 and a current ratio of 1.09. The firm has a market cap of $61.47 billion, a price-to-earnings ratio of 89.65, a price-to-earnings-growth ratio of 1.27 and a beta of 1.16.

EOG Resources (NYSE:EOG) last issued its earnings results on Friday, November 2nd. The energy exploration company reported $1.75 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.56 by $0.19. The business had revenue of $4.78 billion during the quarter, compared to analyst estimates of $4.20 billion. EOG Resources had a return on equity of 16.79% and a net margin of 30.90%. EOG Resources’s revenue was up 80.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.19 EPS. As a group, research analysts predict that EOG Resources will post 5.89 earnings per share for the current year.

In other news, Director Charles R. Crisp sold 1,792 shares of the business’s stock in a transaction that occurred on Tuesday, September 11th. The stock was sold at an average price of $116.80, for a total transaction of $209,305.60. Following the completion of the transaction, the director now directly owns 49,741 shares in the company, valued at $5,809,748.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP David W. Trice sold 2,489 shares of the business’s stock in a transaction that occurred on Friday, September 28th. The stock was sold at an average price of $127.44, for a total value of $317,198.16. Following the transaction, the executive vice president now owns 74,807 shares of the company’s stock, valued at $9,533,404.08. The disclosure for this sale can be found here. Insiders own 0.51% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. Bainco International Investors raised its holdings in EOG Resources by 0.5% during the second quarter. Bainco International Investors now owns 84,702 shares of the energy exploration company’s stock worth $10,539,000 after purchasing an additional 438 shares in the last quarter. Parkwood LLC raised its holdings in EOG Resources by 8.3% during the second quarter. Parkwood LLC now owns 5,747 shares of the energy exploration company’s stock worth $715,000 after purchasing an additional 438 shares in the last quarter. Security National Trust Co. raised its holdings in EOG Resources by 6.3% during the second quarter. Security National Trust Co. now owns 7,689 shares of the energy exploration company’s stock worth $957,000 after purchasing an additional 455 shares in the last quarter. Greenwood Capital Associates LLC raised its holdings in EOG Resources by 1.1% during the second quarter. Greenwood Capital Associates LLC now owns 41,385 shares of the energy exploration company’s stock worth $5,150,000 after purchasing an additional 470 shares in the last quarter. Finally, Delaney Dennis R raised its holdings in EOG Resources by 5.4% during the second quarter. Delaney Dennis R now owns 9,245 shares of the energy exploration company’s stock worth $1,150,000 after purchasing an additional 475 shares in the last quarter. Institutional investors and hedge funds own 85.65% of the company’s stock.

About EOG Resources

EOG Resources, Inc, together with its subsidiaries, explores for, develops, produces, and markets crude oil and natural gas. The company's principal producing areas are located in New Mexico, North Dakota, Texas, Utah, and Wyoming in the United States; and the Republic of Trinidad and Tobago, the United Kingdom, the People's Republic of China, and Canada.

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