Zacks Investment Research upgraded shares of Pioneer Natural Resources (NYSE:PXD) from a hold rating to a buy rating in a report released on Tuesday morning. The brokerage currently has $194.00 price target on the oil and gas development company’s stock.
According to Zacks, “Pioneer remains focused on the Permian Basin, which is among the lucrative oil shale plays with less risk for operation. The region has been growing production even with reduced investment. Moreover, we appreciate the excellent financial health of the company. Pioneer has debt to capitalization ratio of 16.6% which is much lower than 45.7% for the broader industry. On top of that, Pioneer Natural has increased its capital budget and expects it between $3.3 – $3.4 billion, up from its earlier budget of $2.9 billion. Moreover, the company’s return on capital (ROC) of 6.1% over the last one year is evident of the company’s efficiency in spending. In view of these positives, we consider the stock to have considerable upside potential.”
A number of other analysts also recently issued reports on the stock. Morgan Stanley reissued a buy rating and set a $234.00 target price (down previously from $240.00) on shares of Pioneer Natural Resources in a research report on Friday, October 12th. Seaport Global Securities downgraded shares of Pioneer Natural Resources from a buy rating to a neutral rating and dropped their target price for the stock from $230.00 to $210.00 in a research report on Wednesday, October 10th. Oppenheimer assumed coverage on shares of Pioneer Natural Resources in a research report on Wednesday, October 3rd. They set a market perform rating for the company. Piper Jaffray Companies assumed coverage on shares of Pioneer Natural Resources in a research report on Friday, September 28th. They set an overweight rating for the company. Finally, Susquehanna Bancshares raised shares of Pioneer Natural Resources from a neutral rating to a positive rating and increased their target price for the stock from $211.00 to $216.00 in a research report on Monday, September 17th. Four investment analysts have rated the stock with a hold rating, twenty-seven have given a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $234.62.
Pioneer Natural Resources (NYSE:PXD) last posted its earnings results on Tuesday, August 7th. The oil and gas development company reported $1.41 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.49 by ($0.08). The business had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.27 billion. Pioneer Natural Resources had a return on equity of 7.29% and a net margin of 12.23%. As a group, equities research analysts anticipate that Pioneer Natural Resources will post 6.85 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, October 12th. Shareholders of record on Friday, September 28th were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 0.38%. The ex-dividend date was Thursday, September 27th. This is a boost from Pioneer Natural Resources’s previous quarterly dividend of $0.04. Pioneer Natural Resources’s dividend payout ratio is currently 14.81%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PXD. FMR LLC boosted its holdings in Pioneer Natural Resources by 27.9% in the 2nd quarter. FMR LLC now owns 6,431,051 shares of the oil and gas development company’s stock worth $1,217,012,000 after acquiring an additional 1,401,626 shares during the period. BlackRock Inc. boosted its holdings in Pioneer Natural Resources by 9.1% in the 2nd quarter. BlackRock Inc. now owns 12,425,606 shares of the oil and gas development company’s stock worth $2,351,423,000 after acquiring an additional 1,032,381 shares during the period. Bessemer Group Inc. boosted its stake in shares of Pioneer Natural Resources by 892.8% during the 2nd quarter. Bessemer Group Inc. now owns 844,901 shares of the oil and gas development company’s stock valued at $159,889,000 after buying an additional 759,801 shares during the last quarter. PointState Capital LP purchased a new position in shares of Pioneer Natural Resources during the 2nd quarter valued at approximately $83,764,000. Finally, Morgan Stanley boosted its stake in shares of Pioneer Natural Resources by 39.3% during the 2nd quarter. Morgan Stanley now owns 961,513 shares of the oil and gas development company’s stock valued at $181,958,000 after buying an additional 271,144 shares during the last quarter. Hedge funds and other institutional investors own 88.80% of the company’s stock.
About Pioneer Natural Resources
Pioneer Natural Resources Company operates as an independent oil and gas exploration and production company in the United States. The company explores for, develops, and produces oil, natural gas liquids (NGLs), and gas. It has operations primarily in the Permian Basin in West Texas, the Eagle Ford Shale play in South Texas, the Raton field in southeast Colorado, and the West Panhandle field in the Texas Panhandle.
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