Zacks Investment Research Downgrades QEP Resources (QEP) to Hold
According to Zacks, “QEP Resources' quality acreage in the prolific Permian Basin bodes well for its production prospects. Moreover, the company maintains a very competitive cost structure, which contributes to the consistency of its growth and returns. Additionally, QEP Resources has an active stock buyback program, which increases shareholders' value. However, cost inflation in the Permian Basin is a concern for the company. Also, the shortage in takeaway capacity in the basin can impact QEP Resources’ output and profitability. Moreover, the company has a weak balance sheet. Therefore, the stock warrants a cautious stance.”
Several other equities research analysts have also recently issued reports on the company. SunTrust Banks set a $8.00 target price on QEP Resources and gave the stock a hold rating in a report on Tuesday, April 23rd. Wells Fargo & Co reaffirmed a hold rating on shares of QEP Resources in a report on Friday, April 12th. ValuEngine cut QEP Resources from a hold rating to a sell rating in a research note on Wednesday, February 27th. Finally, Raymond James set a $12.00 price objective on QEP Resources and gave the stock a buy rating in a research note on Wednesday, January 23rd. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and five have issued a buy rating to the stock. The stock presently has an average rating of Hold and a consensus target price of $11.75.
QEP Resources (NYSE:QEP) last issued its earnings results on Wednesday, April 24th. The pipeline company reported $0.15 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.02) by $0.17. QEP Resources had a positive return on equity of 1.91% and a negative net margin of 60.23%. The firm had revenue of $280.60 million for the quarter, compared to analysts’ expectations of $289.23 million. During the same period in the previous year, the firm posted ($0.20) earnings per share. The business’s revenue was down 34.6% compared to the same quarter last year. As a group, analysts predict that QEP Resources will post 0.48 EPS for the current year.
A number of hedge funds and other institutional investors have recently modified their holdings of QEP. Virtu Financial LLC bought a new stake in QEP Resources during the fourth quarter worth approximately $105,000. Bank of Montreal Can boosted its position in shares of QEP Resources by 9.7% during the fourth quarter. Bank of Montreal Can now owns 138,023 shares of the pipeline company’s stock valued at $776,000 after buying an additional 12,230 shares during the period. Strs Ohio boosted its position in shares of QEP Resources by 64.5% during the fourth quarter. Strs Ohio now owns 36,535 shares of the pipeline company’s stock valued at $205,000 after buying an additional 14,323 shares during the period. Quantamental Technologies LLC purchased a new position in shares of QEP Resources during the fourth quarter valued at approximately $43,000. Finally, Arizona State Retirement System boosted its position in shares of QEP Resources by 1.0% during the fourth quarter. Arizona State Retirement System now owns 169,940 shares of the pipeline company’s stock valued at $957,000 after buying an additional 1,675 shares during the period. 99.22% of the stock is currently owned by institutional investors.
QEP Resources Company Profile
QEP Resources, Inc operates as a crude oil and natural gas exploration and production company in the United States. The company conducts exploration and production activities in the Permian Basin in Western Texas; and Williston Basin in North Dakota. As of December 31, 2018, it had estimated proved reserves of approximately 658.2 MMboe.
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