Zacks Investment Research downgraded shares of Cabot Oil & Gas (NYSE:COG) from a hold rating to a sell rating in a research note published on Friday morning.
According to Zacks, “Shares of Cabot have declined around 11% over the past six months, underperforming the broader industry’s gain of 1%. With natural gas prices trading below $3 per MMBtu and Cabot being one of the most gas-weighted exploration and production player, the company's earnings and revenues are under pressure. Also, Cabot is set to spend $950 million in 2018, higher than the 2017 spending level of around $765 million. This might lower the company's cash flow. Moreover, grappling with lawsuits and denied a water permit, we expect Cabot’s new pipeline initiative — the Constitution Pipeline Company — to be delayed substantially or get cancelled. This is set to impact the company's earnings outlook. Hence, we take a bearish stance on the prospects of the stock.”
A number of other brokerages have also issued reports on COG. KeyCorp set a $30.00 target price on shares of Cabot Oil & Gas and gave the stock a buy rating in a research report on Saturday, November 25th. JPMorgan Chase & Co. set a $37.00 target price on shares of Cabot Oil & Gas and gave the stock a buy rating in a research report on Monday, November 27th. Credit Suisse Group initiated coverage on shares of Cabot Oil & Gas in a research report on Monday, December 11th. They set a neutral rating and a $30.00 target price on the stock. Morgan Stanley restated a sell rating on shares of Cabot Oil & Gas in a research report on Thursday, December 14th. Finally, Williams Capital set a $30.00 target price on shares of Cabot Oil & Gas and gave the stock a hold rating in a research report on Thursday, December 21st. Four analysts have rated the stock with a sell rating, seven have given a hold rating and thirteen have assigned a buy rating to the company. Cabot Oil & Gas has a consensus rating of Hold and an average target price of $31.21.
Cabot Oil & Gas (NYSE:COG) last issued its quarterly earnings data on Friday, February 23rd. The oil and gas exploration company reported $0.13 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.09 by $0.04. Cabot Oil & Gas had a net margin of 5.69% and a return on equity of 8.60%. The business had revenue of $400.50 million during the quarter, compared to analysts’ expectations of $422.12 million. During the same period last year, the company posted $0.01 EPS. The company’s revenue was up 26.5% on a year-over-year basis. equities analysts expect that Cabot Oil & Gas will post 0.96 earnings per share for the current year.
Cabot Oil & Gas declared that its Board of Directors has authorized a share buyback plan on Friday, February 23rd that authorizes the company to repurchase 30,000,000 outstanding shares. This repurchase authorization authorizes the oil and gas exploration company to buy shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.
Hedge funds have recently modified their holdings of the company. Advisors Asset Management Inc. purchased a new position in shares of Cabot Oil & Gas in the 3rd quarter valued at $130,000. Glenmede Trust Co. NA raised its stake in shares of Cabot Oil & Gas by 119.3% in the 4th quarter. Glenmede Trust Co. NA now owns 5,008 shares of the oil and gas exploration company’s stock valued at $143,000 after acquiring an additional 2,724 shares during the period. MHI Funds LLC purchased a new position in shares of Cabot Oil & Gas in the 4th quarter valued at $147,000. Avestar Capital LLC purchased a new position in shares of Cabot Oil & Gas in the 4th quarter valued at $151,000. Finally, Fuller & Thaler Asset Management Inc. purchased a new position in shares of Cabot Oil & Gas in the 4th quarter valued at $186,000. 98.49% of the stock is currently owned by institutional investors and hedge funds.
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About Cabot Oil & Gas
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The Company operates in the segment of natural gas and oil development, exploitation, exploration and production, in the continental United States. Its assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs.
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