Occidental Petroleum (OXY) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research downgraded shares of Occidental Petroleum (NYSE:OXY) from a buy rating to a hold rating in a report released on Wednesday morning.

According to Zacks, “As Oil prices continue to improve, Occidental Petroleum gains from more oil production in the Permian Resources and concentrating on high-margin production region. The ongoing capital investment will further strengthen the existing operation of the company. The company generates a stable cash flow and its Chemical plant will further improve the same. However,  in last 12 months Occidental Petroleum's shares have underperformed its industry. Occidental Petroleum, like other oil and natural gas companies, faces the risks of cost overruns and development interruptions due to delays in drilling and other approvals. Stringent federal and state laws are tailwinds for the company.”

Several other analysts also recently weighed in on the stock. Morgan Stanley reduced their price objective on shares of Occidental Petroleum from $96.00 to $88.00 and set a buy rating for the company in a research report on Tuesday, November 20th. Citigroup reduced their price objective on shares of Occidental Petroleum from $97.00 to $95.00 and set a buy rating for the company in a research report on Wednesday, November 14th. BMO Capital Markets restated a neutral rating on shares of Occidental Petroleum in a research report on Wednesday, November 14th. Barclays assumed coverage on shares of Occidental Petroleum in a research report on Monday, November 12th. They set an overweight rating and a $84.00 price objective for the company. Finally, ValuEngine upgraded shares of Occidental Petroleum from a sell rating to a hold rating in a research report on Saturday, November 10th. Eight analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company. Occidental Petroleum has an average rating of Buy and an average target price of $87.75.

Shares of NYSE:OXY opened at $69.83 on Wednesday. The company has a market cap of $52.72 billion, a PE ratio of 16.63, a P/E/G ratio of 2.25 and a beta of 0.80. The company has a quick ratio of 1.21, a current ratio of 1.33 and a debt-to-equity ratio of 0.47. Occidental Petroleum has a twelve month low of $62.47 and a twelve month high of $87.67.

Occidental Petroleum (NYSE:OXY) last issued its quarterly earnings data on Monday, November 5th. The oil and gas producer reported $1.77 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.26. The business had revenue of $6.18 billion during the quarter, compared to the consensus estimate of $4.60 billion. Occidental Petroleum had a net margin of 22.19% and a return on equity of 15.43%. The company’s revenue was up 98.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.18 EPS. On average, equities research analysts forecast that Occidental Petroleum will post 5.17 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 15th. Investors of record on Monday, December 10th will be given a $0.78 dividend. The ex-dividend date of this dividend is Friday, December 7th. This represents a $3.12 annualized dividend and a yield of 4.47%. Occidental Petroleum’s dividend payout ratio (DPR) is 350.56%.

Hedge funds have recently added to or reduced their stakes in the stock. Pendal Group Ltd acquired a new position in Occidental Petroleum in the 2nd quarter valued at $190,000. Cornerstone Wealth Management LLC acquired a new position in Occidental Petroleum in the 2nd quarter valued at $2,053,000. Sumitomo Life Insurance Co. increased its stake in Occidental Petroleum by 4.2% in the 2nd quarter. Sumitomo Life Insurance Co. now owns 26,343 shares of the oil and gas producer’s stock valued at $2,204,000 after buying an additional 1,062 shares during the period. NewSquare Capital LLC increased its stake in Occidental Petroleum by 4,588.9% in the 2nd quarter. NewSquare Capital LLC now owns 2,110 shares of the oil and gas producer’s stock valued at $175,000 after buying an additional 2,065 shares during the period. Finally, Acadian Asset Management LLC increased its stake in Occidental Petroleum by 57.6% in the 2nd quarter. Acadian Asset Management LLC now owns 43,900 shares of the oil and gas producer’s stock valued at $3,673,000 after buying an additional 16,042 shares during the period. Hedge funds and other institutional investors own 81.53% of the company’s stock.

Occidental Petroleum Company Profile

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. The company operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas.

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