Concho Resources (NYSE:CXO) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “Concho Resources shares have gained 1.8% over the last year, against the Zacks Oil & Gas U.S. Exploration & Production industry's decrease of 16.4% over the same time period. The company's core operations are focused in the prolific Permian basin, providing this large-cap E&P with an enviable acreage of low-risk top-tier assets and a multiyear drilling inventory. With the recently announced $9.5 billion RSP Permian acquisition, the company will be able to further bolster its scale and leadership position in the region. And while Concho's track record of production growth remains strong, it has been achieved at a competitive cost structure. Despite all the above-mentioned positives, service cost inflation and lack of geographical diversification keep us on the sidelines. Thus, we see limited upside from current levels and take a cautious stance on CXO shares.”
A number of other research analysts also recently issued reports on the company. Credit Suisse Group initiated coverage on Concho Resources in a report on Monday, December 11th. They set a “neutral” rating and a $136.00 price objective for the company. KLR Group downgraded Concho Resources to a “hold” rating and set a $154.00 price objective for the company. in a report on Wednesday, December 27th. Royal Bank of Canada set a $167.00 price objective on Concho Resources and gave the stock a “buy” rating in a report on Wednesday, December 20th. Bank of America upgraded Concho Resources from a “neutral” rating to a “buy” rating and set a $190.00 price objective for the company in a report on Thursday, January 4th. Finally, Jefferies Group set a $173.00 price objective on Concho Resources and gave the stock a “buy” rating in a report on Wednesday, December 20th. Nine research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $171.19.
Shares of Concho Resources stock traded up $1.41 during trading hours on Monday, hitting $135.04. The company’s stock had a trading volume of 1,025,432 shares, compared to its average volume of 1,635,408. Concho Resources has a 12 month low of $106.73 and a 12 month high of $162.91. The company has a market capitalization of $19,919.95, a P/E ratio of 64.61 and a beta of 0.97. The company has a debt-to-equity ratio of 0.30, a current ratio of 0.51 and a quick ratio of 0.50.
Concho Resources (NYSE:CXO) last announced its quarterly earnings results on Tuesday, February 20th. The oil and natural gas company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.20. The company had revenue of $780.00 million during the quarter, compared to the consensus estimate of $720.51 million. Concho Resources had a return on equity of 3.61% and a net margin of 36.97%. The company’s revenue for the quarter was up 48.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.20 earnings per share. equities analysts anticipate that Concho Resources will post 3.74 EPS for the current fiscal year.
In other news, VP E Joseph Wright sold 83,759 shares of the firm’s stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $148.27, for a total value of $12,418,946.93. Following the completion of the sale, the vice president now directly owns 159,268 shares of the company’s stock, valued at $23,614,666.36. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Timothy A. Leach sold 40,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $148.14, for a total value of $5,925,600.00. Following the completion of the sale, the chairman now directly owns 737,837 shares of the company’s stock, valued at $109,303,173.18. The disclosure for this sale can be found here. 0.99% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. lifted its position in shares of Concho Resources by 1.9% in the fourth quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 22,573 shares of the oil and natural gas company’s stock valued at $3,444,000 after buying an additional 428 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec lifted its position in shares of Concho Resources by 4.1% in the third quarter. Caisse DE Depot ET Placement DU Quebec now owns 12,600 shares of the oil and natural gas company’s stock valued at $1,667,000 after buying an additional 500 shares during the last quarter. New Mexico Educational Retirement Board lifted its position in shares of Concho Resources by 3.6% in the fourth quarter. New Mexico Educational Retirement Board now owns 14,300 shares of the oil and natural gas company’s stock valued at $2,148,000 after buying an additional 500 shares during the last quarter. Private Advisor Group LLC lifted its position in shares of Concho Resources by 25.6% in the fourth quarter. Private Advisor Group LLC now owns 2,739 shares of the oil and natural gas company’s stock valued at $426,000 after buying an additional 559 shares during the last quarter. Finally, LS Investment Advisors LLC lifted its position in shares of Concho Resources by 14.5% in the fourth quarter. LS Investment Advisors LLC now owns 4,724 shares of the oil and natural gas company’s stock valued at $710,000 after buying an additional 597 shares during the last quarter. 95.70% of the stock is owned by institutional investors.
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About Concho Resources
Concho Resources Inc, an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The company's principal operating areas are located in the Permian Basin of southeast New Mexico and west Texas. As of December 31, 2017, its total estimated proved reserves were 840 million barrels of oil equivalent.
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