EOG Resources (NYSE:EOG) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of EOG Resources (NYSE:EOG) from a buy rating to a hold rating in a research note published on Wednesday, January 10th.

According to Zacks, “EOG Resources holds premium acreages in the Permian, Bakken and Eagle Ford oil shale plays in the United States. Notably, during 2016, almost 50% of the wells drilled by the firm met the standard of premium wells. The company expected 80% and 90% of the wells to meet the standards in 2017 and 2018, respectively. In the promising U.S. shale plays, EOG Resources has identified 8,000 premium wells that can give access to almost 7.3 billion barrels of oil equivalent estimated potential reserves over a period of 10 years. EOG’s pricing chart history is also impressive having outperformed the industry. However, the company’s lack of exposure to international resources is a drag for the company. On top of that, increasing debt load on the company’s shoulder is a cause of concern.  Moreover, cash balances have been declining substantially over the first nine months, reflecting balance sheet weakness.”

EOG has been the topic of a number of other research reports. Morgan Stanley set a $116.00 price objective on EOG Resources and gave the stock a buy rating in a research note on Wednesday, October 18th. Barclays lifted their target price on EOG Resources from $101.00 to $117.00 and gave the stock an overweight rating in a report on Wednesday, October 11th. Citigroup upgraded EOG Resources from a neutral rating to a buy rating and set a $125.00 target price for the company in a report on Wednesday, January 3rd. Bank of America cut EOG Resources from a buy rating to a neutral rating and set a $125.00 target price for the company. in a report on Thursday, January 4th. They noted that the move was a valuation call. Finally, Argus lifted their target price on EOG Resources to $133.00 and gave the stock a buy rating in a report on Monday, January 8th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and nineteen have given a buy rating to the stock. EOG Resources presently has a consensus rating of Buy and an average target price of $116.52.

Shares of EOG Resources (EOG) opened at $116.52 on Wednesday. The company has a quick ratio of 1.11, a current ratio of 1.27 and a debt-to-equity ratio of 0.46. EOG Resources has a 12 month low of $81.99 and a 12 month high of $119.00. The stock has a market capitalization of $67,370.00, a P/E ratio of 11,652.00, a price-to-earnings-growth ratio of 4.36 and a beta of 0.98.

EOG Resources (NYSE:EOG) last released its quarterly earnings data on Thursday, November 2nd. The energy exploration company reported $0.19 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.12 by $0.07. EOG Resources had a return on equity of 1.73% and a net margin of 0.10%. The business had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.59 billion. During the same quarter in the previous year, the company posted ($0.40) EPS. The company’s revenue was up 24.8% compared to the same quarter last year. sell-side analysts expect that EOG Resources will post 0.95 earnings per share for the current year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 31st. Shareholders of record on Wednesday, January 17th were issued a $0.1675 dividend. This represents a $0.67 annualized dividend and a dividend yield of 0.58%. The ex-dividend date of this dividend was Tuesday, January 16th. EOG Resources’s dividend payout ratio is 6,700.00%.

In other EOG Resources news, EVP Michael P. Donaldson sold 1,741 shares of the company’s stock in a transaction on Thursday, December 21st. The stock was sold at an average price of $106.00, for a total value of $184,546.00. Following the completion of the sale, the executive vice president now directly owns 75,118 shares in the company, valued at approximately $7,962,508. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP David W. Trice sold 3,114 shares of the company’s stock in a transaction on Monday, November 6th. The stock was sold at an average price of $106.65, for a total value of $332,108.10. Following the completion of the sale, the executive vice president now owns 80,415 shares of the company’s stock, valued at $8,576,259.75. The disclosure for this sale can be found here. Insiders sold a total of 73,048 shares of company stock valued at $8,152,193 over the last quarter. Company insiders own 0.53% of the company’s stock.

Several hedge funds have recently modified their holdings of EOG. Schroder Investment Management Group lifted its holdings in shares of EOG Resources by 13.2% in the 2nd quarter. Schroder Investment Management Group now owns 12,110 shares of the energy exploration company’s stock worth $1,090,000 after buying an additional 1,415 shares during the period. Twin Tree Management LP bought a new position in shares of EOG Resources in the 2nd quarter worth $445,000. HPM Partners LLC raised its position in shares of EOG Resources by 32.0% in the 2nd quarter. HPM Partners LLC now owns 23,018 shares of the energy exploration company’s stock worth $2,084,000 after acquiring an additional 5,578 shares in the last quarter. Aberdeen Asset Management PLC UK raised its position in shares of EOG Resources by 4.9% in the 2nd quarter. Aberdeen Asset Management PLC UK now owns 5,022,672 shares of the energy exploration company’s stock worth $454,652,000 after acquiring an additional 234,254 shares in the last quarter. Finally, Alliancebernstein L.P. raised its position in shares of EOG Resources by 8.0% in the 2nd quarter. Alliancebernstein L.P. now owns 6,914,602 shares of the energy exploration company’s stock worth $625,910,000 after acquiring an additional 511,099 shares in the last quarter. Institutional investors and hedge funds own 85.38% of the company’s stock.

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EOG Resources Company Profile

EOG Resources, Inc explores for, develops, produces and markets crude oil and natural gas in major producing basins in the United States, The Republic of Trinidad and Tobago, the United Kingdom, The People’s Republic of China, Canada and, from time to time, select other international areas. Its operations are all crude oil and natural gas exploration and production related.

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