Zacks Investment Research Lowers Statoil ASA (STO) to Sell
According to Zacks, “The near term prospect for Statoil ASA’s upstream operation seems bleak following the persistent weak commodity prices. Although oil prices has recovered significantly from mid-February lows, a closer look reveals that it is way below the level the commodity was trading in mid-2014. Additionally, OPEC’s September crude production came at a record level, which contradicts the cartel’s pledge to recover oil prices by curbing production in an already over-supplied market. Overall, there might not be any respite to oil prices in the near term that could hinder the company’s upstream business. On top of that, Statoil ASA’s plan to lower 2016 spending for exploration activities may reduce the company’s production. Therefore, we caution investors against this company at this point.”
Other equities analysts have also issued reports about the company. Bank of America Corp. upgraded Statoil ASA from a neutral rating to a buy rating in a report on Friday, September 16th. Societe Generale raised Statoil ASA from a hold rating to a buy rating in a research report on Wednesday, July 6th. HSBC raised Statoil ASA from a hold rating to a buy rating in a research report on Wednesday, September 7th. DNB Markets raised Statoil ASA from a hold rating to a buy rating in a research report on Thursday, July 28th. Finally, Morgan Stanley downgraded Statoil ASA from an overweight rating to an equal weight rating in a research report on Thursday, July 21st. Six equities research analysts have rated the stock with a sell rating, five have given a hold rating and six have assigned a buy rating to the company’s stock. Statoil ASA has a consensus rating of Hold and an average price target of $15.53.
Shares of Statoil ASA (NYSE:STO) opened at 16.64 on Thursday. The stock’s 50 day moving average price is $16.10 and its 200-day moving average price is $16.35. Statoil ASA has a 12 month low of $10.89 and a 12 month high of $17.94. The firm’s market capitalization is $52.93 billion.
The firm also recently declared a quarterly dividend, which will be paid on Friday, December 16th. Shareholders of record on Thursday, November 3rd will be paid a dividend of $0.2201 per share. This represents a $0.88 dividend on an annualized basis and a yield of 5.29%. The ex-dividend date of this dividend is Tuesday, November 1st. Statoil ASA’s dividend payout ratio is -229.72%.
A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Advisor Group Inc. acquired a new position in shares of Statoil ASA during the second quarter worth approximately $125,000. Cubist Systematic Strategies LLC acquired a new position in shares of Statoil ASA during the second quarter worth approximately $225,000. Creative Planning boosted its position in shares of Statoil ASA by 6.3% in the third quarter. Creative Planning now owns 13,819 shares of the company’s stock worth $232,000 after buying an additional 816 shares in the last quarter. Fox Run Management L.L.C. acquired a new position in shares of Statoil ASA during the second quarter worth approximately $242,000. Finally, M&T Bank Corp boosted its position in shares of Statoil ASA by 13.1% in the second quarter. M&T Bank Corp now owns 14,206 shares of the company’s stock worth $246,000 after buying an additional 1,650 shares in the last quarter. Hedge funds and other institutional investors own 5.33% of the company’s stock.
Statoil ASA Company Profile
Statoil ASA is an energy company, engaged in oil and gas exploration and production activities. The Company’s segments include Development and Production Norway (DPN), Development and Production USA (DPUSA), Development and Production International (DPI), Marketing, Midstream and Processing (MMP), New Energy Solutions (NES), and Other.
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