Zacks Investment Research lowered shares of Parsley Energy (NYSE:PE) from a hold rating to a sell rating in a research note published on Tuesday morning.

According to Zacks, “For more than three months, Parsley Energy has seen its stock price decline precipitously. Since October, shares of the independent energy producer have plunged around 40% as a renewed slump in crude prices due to a persistent global supply glut sent a shockwave through the industry. Moreover, at the current sub-$50 oil price level, Parsley is unlikely to fund its operations, making it dependent on other sources of financing. As it is, Parsley's geographic concentration risk and infrastructural bottlenecks in the Permian region still remain matters of concern. Further, the high 2018 capex budget along with expected reduction in output in the fourth quarter due to weather related downtimes and asset sales may limit the company's overall earnings and margins. Given these headwinds, the company is perceived as a risky bet that ordinary investors should exit.”

Several other equities analysts also recently commented on PE. Stifel Nicolaus reiterated a buy rating and set a $57.00 price target on shares of Parsley Energy in a report on Wednesday, October 24th. Wells Fargo & Co began coverage on Parsley Energy in a report on Wednesday, October 24th. They set an outperform rating and a $47.00 price target on the stock. ValuEngine downgraded Parsley Energy from a sell rating to a strong sell rating in a report on Saturday, December 1st. Williams Capital reiterated a hold rating and set a $25.00 price target on shares of Parsley Energy in a report on Wednesday, December 12th. Finally, TD Securities lowered their price target on Parsley Energy from $40.00 to $38.00 and set a buy rating on the stock in a report on Friday, December 21st. Two investment analysts have rated the stock with a sell rating, four have given a hold rating, twenty-six have issued a buy rating and one has given a strong buy rating to the stock. The company currently has an average rating of Buy and an average price target of $33.33.

PE traded down $0.25 during midday trading on Tuesday, hitting $18.76. 241,707 shares of the company’s stock traded hands, compared to its average volume of 7,165,789. The firm has a market cap of $6.08 billion, a PE ratio of 27.17, a PEG ratio of 0.42 and a beta of 0.23. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.70 and a current ratio of 0.70. Parsley Energy has a one year low of $14.17 and a one year high of $33.43.

Parsley Energy (NYSE:PE) last issued its quarterly earnings data on Thursday, November 1st. The oil and natural gas company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.01. The firm had revenue of $511.00 million for the quarter, compared to analyst estimates of $493.44 million. Parsley Energy had a net margin of 21.70% and a return on equity of 6.77%. The company’s revenue for the quarter was up 112.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.12 earnings per share. On average, sell-side analysts anticipate that Parsley Energy will post 1.55 earnings per share for the current fiscal year.

In related news, Director A R. Alameddine acquired 5,000 shares of the stock in a transaction dated Tuesday, November 27th. The shares were acquired at an average price of $21.10 per share, for a total transaction of $105,500.00. Following the completion of the purchase, the director now owns 122,643 shares in the company, valued at approximately $2,587,767.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders bought 7,000 shares of company stock worth $145,490. 13.17% of the stock is currently owned by corporate insiders.

Hedge funds have recently modified their holdings of the stock. Korea Investment CORP bought a new position in Parsley Energy in the second quarter worth $654,000. Highland Capital Management LLC bought a new position in Parsley Energy in the third quarter worth $502,000. Credit Suisse AG lifted its position in Parsley Energy by 42.2% in the third quarter. Credit Suisse AG now owns 502,991 shares of the oil and natural gas company’s stock worth $14,713,000 after purchasing an additional 149,203 shares during the period. Lisanti Capital Growth LLC lifted its position in Parsley Energy by 29.2% in the third quarter. Lisanti Capital Growth LLC now owns 25,730 shares of the oil and natural gas company’s stock worth $753,000 after purchasing an additional 5,808 shares during the period. Finally, Jaffetilchin Investment Partners LLC bought a new position in shares of Parsley Energy during the third quarter valued at $985,000. 82.96% of the stock is owned by hedge funds and other institutional investors.

About Parsley Energy

Parsley Energy, Inc, an independent oil and natural gas company, engages in the acquisition, development, production, exploration, and sale of crude oil and natural gas properties in the Permian Basin in West Texas and Southeastern New Mexico. As of December 31, 2017, its acreage position consisted of 219,747 net acres, including 174,392 net acres in the Midland Basin and 45,355 net acres in the Delaware Basin; and 241.0 net producing horizontal wells and 731.5 net producing vertical wells, as well an estimated proved oil and natural gas reserves were 416.4 MMBoe.

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