Zacks Investment Research lowered shares of ConocoPhillips (NYSE:COP) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.
According to Zacks, “Being a firm in the exploration and production industry, ConocoPhillips’ profitability has expectedly been hit by this weakly priced oil and gas market. As a result, the company’s revenue has been decreasing at a CAGR of 33.8% over the last three years. We are concerned about the company’s escalating debt levels. It is to be noted that at the end of second-quarter 2017, ConocoPhillips had only $7.5 billion in cash and cash equivalents, while its debt had climbed to $23.5 billion. Moreover, the company’s cash flow is expected to remain tight even after the capital-expenditure reductions. Hence, we do not see any improvement in the company’s upstream operations unless there’s a recovery in commodity prices.”
A number of other research analysts have also issued reports on COP. Scotiabank reiterated a buy rating and set a $53.00 price target on shares of ConocoPhillips in a research note on Friday, September 29th. BidaskClub lowered shares of ConocoPhillips from a hold rating to a sell rating in a research note on Thursday, August 17th. Royal Bank Of Canada restated a buy rating and set a $54.00 target price on shares of ConocoPhillips in a research report on Friday, September 29th. Piper Jaffray Companies set a $45.00 target price on shares of ConocoPhillips and gave the stock a buy rating in a research report on Friday, August 25th. Finally, Jefferies Group LLC set a $59.00 target price on shares of ConocoPhillips and gave the stock a buy rating in a research report on Sunday, July 30th. Four analysts have rated the stock with a sell rating, seven have given a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company. ConocoPhillips presently has a consensus rating of Hold and an average price target of $54.15.
ConocoPhillips (NYSE:COP) last issued its quarterly earnings results on Thursday, July 27th. The energy producer reported $0.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.16. ConocoPhillips had a negative net margin of 12.29% and a negative return on equity of 2.86%. The business had revenue of $8.88 billion for the quarter, compared to analyst estimates of $6.74 billion. During the same period in the previous year, the business posted ($0.79) earnings per share.
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The firm also recently declared a quarterly dividend, which will be paid on Friday, December 1st. Shareholders of record on Monday, October 16th will be issued a $0.265 dividend. This represents a $1.06 annualized dividend and a dividend yield of 2.13%. The ex-dividend date is Friday, October 13th. ConocoPhillips’s dividend payout ratio (DPR) is presently -34.98%.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Financial Management Professionals Inc. lifted its holdings in shares of ConocoPhillips by 0.3% in the second quarter. Financial Management Professionals Inc. now owns 2,294 shares of the energy producer’s stock valued at $100,000 after purchasing an additional 6 shares in the last quarter. First Command Bank lifted its holdings in shares of ConocoPhillips by 9.4% in the second quarter. First Command Bank now owns 2,313 shares of the energy producer’s stock valued at $101,000 after purchasing an additional 199 shares in the last quarter. Krilogy Financial LLC lifted its holdings in shares of ConocoPhillips by 48.6% in the second quarter. Krilogy Financial LLC now owns 2,392 shares of the energy producer’s stock valued at $105,000 after purchasing an additional 782 shares in the last quarter. Advantage Investment Management LLC lifted its holdings in shares of ConocoPhillips by 65.3% in the first quarter. Advantage Investment Management LLC now owns 2,425 shares of the energy producer’s stock valued at $121,000 after purchasing an additional 958 shares in the last quarter. Finally, Westside Investment Management Inc. lifted its holdings in shares of ConocoPhillips by 468.4% in the first quarter. Westside Investment Management Inc. now owns 2,427 shares of the energy producer’s stock valued at $119,000 after purchasing an additional 2,000 shares in the last quarter. 68.90% of the stock is currently owned by institutional investors.
ConocoPhillips is an independent exploration and production company. The Company explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The Company operates through five segments: Alaska, Lower 48, Canada, Europe and North Africa, Asia Pacific and Middle East, and Other International.
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