Concho Resources (NYSE:CXO) Cut to “Hold” at Zacks Investment Research

Concho Resources (NYSE:CXO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday, December 6th.

According to Zacks, “Concho Resources' core operations are focused in the prolific Permian basin, providing this large-cap E&P with an enviable acreage of low-risk top-tier assets and a multiyear drilling inventory. While Concho's track record of production growth remains strong, it has been achieved at a competitive cost structure. CXO also maintains a robust balance sheet, while following a prudent investment approach. However, we remain concerned of the service cost inflation and the company’s lack of geographical diversification. Further, until the commodity prices rebound sufficiently, we believe investors should exhibit caution before accumulating shares.”

Other analysts have also recently issued research reports about the stock. Royal Bank of Canada set a $158.00 price objective on shares of Concho Resources and gave the stock a “buy” rating in a report on Thursday, August 24th. Citigroup cut their price objective on shares of Concho Resources from $151.00 to $149.00 and set a “buy” rating on the stock in a report on Tuesday, August 15th. BMO Capital Markets reissued a “buy” rating on shares of Concho Resources in a report on Friday, August 11th. Jefferies Group raised shares of Concho Resources from a “hold” rating to a “buy” rating and set a $159.00 price objective on the stock in a report on Monday, October 9th. Finally, Stifel Nicolaus set a $185.00 price objective on shares of Concho Resources and gave the stock a “buy” rating in a report on Thursday, October 5th. Ten analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $151.63.

Shares of Concho Resources (NYSE:CXO) traded down $1.11 during trading on Wednesday, reaching $150.22. 888,934 shares of the company were exchanged, compared to its average volume of 1,009,083. Concho Resources has a one year low of $106.73 and a one year high of $155.05. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $22,502.17, a P/E ratio of 39.95 and a beta of 1.09.

Concho Resources (NYSE:CXO) last issued its quarterly earnings results on Tuesday, October 31st. The oil and natural gas company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.19. Concho Resources had a net margin of 24.19% and a return on equity of 2.92%. The company had revenue of $627.00 million during the quarter, compared to the consensus estimate of $614.12 million. During the same quarter in the previous year, the firm earned $0.32 earnings per share. The firm’s quarterly revenue was up 45.8% on a year-over-year basis. analysts predict that Concho Resources will post 1.85 EPS for the current year.

Institutional investors and hedge funds have recently made changes to their positions in the business. Israel Discount Bank of New York increased its stake in Concho Resources by 32.0% in the 2nd quarter. Israel Discount Bank of New York now owns 825 shares of the oil and natural gas company’s stock valued at $100,000 after buying an additional 200 shares during the period. Sun Life Financial INC increased its stake in Concho Resources by 10,850.0% in the 2nd quarter. Sun Life Financial INC now owns 1,095 shares of the oil and natural gas company’s stock valued at $133,000 after buying an additional 1,085 shares during the period. Twin Tree Management LP acquired a new position in Concho Resources in the 2nd quarter valued at $137,000. C M Bidwell & Associates Ltd. increased its stake in Concho Resources by 1.4% in the 2nd quarter. C M Bidwell & Associates Ltd. now owns 1,495 shares of the oil and natural gas company’s stock valued at $182,000 after buying an additional 20 shares during the period. Finally, Commonwealth Equity Services Inc acquired a new position in Concho Resources in the 3rd quarter valued at $206,000. 94.47% of the stock is currently owned by institutional investors.

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Concho Resources Company Profile

Concho Resources Inc is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s four operating areas include the Northern Delaware Basin, the Southern Delaware Basin, the Midland Basin and the New Mexico Shelf.

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