EOG Resources, Inc. (EOG) Cut to “Sell” at Zacks Investment Research

EOG Resources, Inc. (NYSE:EOG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday, July 14th.

According to Zacks, “We are revising EOG Resources rating to “Sell” from “Hold”. The company has huge exposure to North American shale plays where the business environment is highly competitive and volatile. On top of that, long-term debt of EOG Resources has been rising since 2015 which is a matter of concern. Moreover, the credit ratings of the company’s bonds have been downgraded by credit rating agencies.  Given high debt load and weak credit ratings we think that the company might face difficulties in generating debt capital for financing future growth projects. Volatile oil and gas prices also remain a drag. This is evident from the pressure its top line is facing and has decreased at a CAGR of 34.9% over the last three years. Under these headwinds, we expect shares of EOG Resources to be under pressure in the near future.”

EOG has been the subject of several other research reports. Stifel Nicolaus restated a “buy” rating and issued a $111.00 price objective on shares of EOG Resources in a research report on Friday, May 26th. Scotiabank reaffirmed a “hold” rating and issued a $109.00 target price on shares of EOG Resources in a research note on Tuesday, May 16th. Credit Suisse Group set a $108.00 target price on shares of EOG Resources and gave the company a “hold” rating in a research note on Friday, June 2nd. Iberia Capital raised their target price on shares of EOG Resources from $109.00 to $119.00 and gave the company an “outperform” rating in a research note on Monday, April 3rd. Finally, Wells Fargo & Company raised shares of EOG Resources from a “market perform” rating to an “outperform” rating and set a $110.00 target price on the stock in a research note on Wednesday, May 10th. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and twenty-three have assigned a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $108.23.

Shares of EOG Resources (EOG) opened at 88.53 on Friday. EOG Resources has a 52 week low of $85.88 and a 52 week high of $109.37. The firm’s market capitalization is $51.12 billion. The stock has a 50 day moving average of $91.31 and a 200-day moving average of $94.17.

EOG Resources (NYSE:EOG) last posted its quarterly earnings data on Tuesday, August 1st. The energy exploration company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.10 by $0.02. The company had revenue of $2.61 billion during the quarter, compared to analyst estimates of $2.51 billion. EOG Resources had a negative net margin of 2.88% and a negative return on equity of 0.68%. The company’s revenue was up 47.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.38) EPS. Analysts expect that EOG Resources will post $0.59 earnings per share for the current year.

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Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of EOG Resources by 2.6% in the second quarter. Vanguard Group Inc. now owns 41,179,515 shares of the energy exploration company’s stock worth $3,727,570,000 after buying an additional 1,058,276 shares during the last quarter. BlackRock Inc. increased its position in shares of EOG Resources by 2,098.0% in the first quarter. BlackRock Inc. now owns 35,740,352 shares of the energy exploration company’s stock worth $3,486,473,000 after buying an additional 34,114,299 shares during the last quarter. Northern Trust Corp boosted its position in EOG Resources by 8.7% in the second quarter. Northern Trust Corp now owns 8,001,255 shares of the energy exploration company’s stock worth $724,272,000 after buying an additional 638,183 shares during the period. Jennison Associates LLC boosted its position in EOG Resources by 35.3% in the first quarter. Jennison Associates LLC now owns 6,971,347 shares of the energy exploration company’s stock worth $680,055,000 after buying an additional 1,816,980 shares during the period. Finally, Alliancebernstein L.P. boosted its position in EOG Resources by 8.0% in the second quarter. Alliancebernstein L.P. now owns 6,914,602 shares of the energy exploration company’s stock worth $625,910,000 after buying an additional 511,099 shares during the period. Institutional investors and hedge funds own 85.14% of the company’s stock.

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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