An issue of Sanchez Energy Corp (NYSE:SN) bonds rose 2% as a percentage of their face value during trading on Thursday after the company announced weaker than expected quarterly earnings. The high-yield debt issue has a 6.125% coupon and will mature on January 15, 2023. The debt is now trading at $39.50 and was trading at $52.00 one week ago. Price changes in a company’s bonds in credit markets sometimes anticipate parallel changes in its stock price. The energy producer reported ($0.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.14). The company had revenue of $277.71 million for the quarter, compared to analysts’ expectations of $255.06 million. Sanchez Energy had a negative net margin of 15.50% and a negative return on equity of 8.74%. The business’s revenue was up 50.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.22 EPS.
A number of equities analysts recently issued reports on the stock. ValuEngine downgraded shares of Sanchez Energy from a “sell” rating to a “strong sell” rating in a report on Monday, July 16th. Capital One Financial reissued an “underweight” rating on shares of Sanchez Energy in a report on Tuesday, August 7th. Royal Bank of Canada downgraded shares of Sanchez Energy from an “outperform” rating to a “sector perform” rating and set a $7.00 price objective on the stock. in a report on Wednesday, August 8th. SunTrust Banks set a $4.00 price objective on shares of Sanchez Energy and gave the stock a “hold” rating in a report on Wednesday, August 8th. Finally, Northland Securities reissued a “hold” rating and issued a $3.00 price objective on shares of Sanchez Energy in a report on Thursday, August 9th. Two analysts have rated the stock with a sell rating and eleven have issued a hold rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $3.88.
In related news, CFO Howard J. Sr Thill, Sr. sold 21,877 shares of the firm’s stock in a transaction that occurred on Monday, October 15th. The shares were sold at an average price of $2.46, for a total value of $53,817.42. Following the transaction, the chief financial officer now owns 348,373 shares of the company’s stock, valued at $856,997.58. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 14.70% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Congress Asset Management Co. MA raised its stake in Sanchez Energy by 12.0% during the 3rd quarter. Congress Asset Management Co. MA now owns 589,386 shares of the energy producer’s stock worth $1,356,000 after acquiring an additional 63,220 shares during the period. Stonebridge Capital Management Inc. raised its stake in Sanchez Energy by 67.3% during the 3rd quarter. Stonebridge Capital Management Inc. now owns 122,416 shares of the energy producer’s stock worth $282,000 after acquiring an additional 49,231 shares during the period. Northern Trust Corp raised its stake in Sanchez Energy by 6.1% during the 2nd quarter. Northern Trust Corp now owns 921,311 shares of the energy producer’s stock worth $4,165,000 after acquiring an additional 52,905 shares during the period. Jane Street Group LLC raised its stake in Sanchez Energy by 73.8% during the 2nd quarter. Jane Street Group LLC now owns 135,695 shares of the energy producer’s stock worth $613,000 after acquiring an additional 57,627 shares during the period. Finally, MetLife Investment Advisors LLC bought a new stake in Sanchez Energy during the 2nd quarter worth approximately $180,000. Institutional investors own 48.96% of the company’s stock.
The company has a market capitalization of $135.53 million, a P/E ratio of -5.56 and a beta of 1.69.
About Sanchez Energy (NYSE:SN)
Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of U.S. onshore unconventional oil and natural gas resources. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana.
See Also: Earnings Per Share (EPS)
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