Southwestern Energy (NYSE:SWN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Monday, Zacks.com reports. They currently have a $3.00 target price on the energy company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 21.95% from the company’s previous close.
According to Zacks, “Southwestern Energy has a diversified reserve base in multiple U.S. basins and remains focused on investments in high-return areas. Production in the region is estimated to grow 20% to 75,600 barrels per day, while generating significant free cash flow. The growing production will likely help it to reach its target of achieving higher margin from the Appalachia region. Also, the management has also been working diligently to streamline the company’s portfolio, thereby impairing debt burden and increasing shareholder value. However, the company’s high exposure to debt is concerning, as it can affect financial flexibility. Also, despite its strong cost controlling efforts, in first-quarter 2019, the company witnessed an increase in operating costs and expenses by almost 17% year over year. As such, the stock warrants a cautious stance.”
Other analysts have also issued research reports about the stock. B. Riley set a $2.00 price target on shares of Ascena Retail Group and gave the stock a “hold” rating in a research note on Friday, May 17th. Wolfe Research lowered shares of Southwestern Energy from a “peer perform” rating to an “underperform” rating in a research note on Thursday, April 18th. Credit Suisse Group upgraded shares of Laredo Petroleum from an “underperform” rating to a “neutral” rating and set a $2.83 price target for the company in a research note on Tuesday, July 9th. They noted that the move was a valuation call. Oppenheimer began coverage on shares of Southwestern Energy in a research note on Thursday, June 6th. They issued a “market perform” rating for the company. Finally, Morgan Stanley set a $23.00 price target on shares of Cabot Oil & Gas and gave the stock a “hold” rating in a research note on Monday, June 24th. Seven investment analysts have rated the stock with a sell rating, eight have issued a hold rating and one has assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $5.21.
SWN opened at $2.46 on Monday. The stock has a market capitalization of $1.32 billion, a price-to-earnings ratio of 2.41, a P/E/G ratio of 0.41 and a beta of 1.06. The firm’s 50 day moving average price is $3.01. Southwestern Energy has a 52-week low of $2.36 and a 52-week high of $6.23. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.94 and a quick ratio of 0.94.
Southwestern Energy (NYSE:SWN) last posted its quarterly earnings data on Thursday, April 25th. The energy company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.06. The company had revenue of $990.00 million for the quarter, compared to analyst estimates of $563.69 million. Southwestern Energy had a net margin of 23.47% and a return on equity of 23.46%. The business’s quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.28 earnings per share. As a group, analysts forecast that Southwestern Energy will post 0.67 earnings per share for the current year.
A number of institutional investors have recently added to or reduced their stakes in SWN. Legacy Advisors LLC acquired a new position in shares of Southwestern Energy during the first quarter valued at $49,000. Stevens Capital Management LP acquired a new position in shares of Southwestern Energy during the first quarter valued at $54,000. Cleararc Capital Inc. acquired a new position in shares of Southwestern Energy during the first quarter valued at $65,000. Van Hulzen Asset Management LLC acquired a new position in shares of Southwestern Energy during the first quarter valued at $67,000. Finally, First Republic Investment Management Inc. boosted its holdings in shares of Southwestern Energy by 18.1% during the first quarter. First Republic Investment Management Inc. now owns 19,277 shares of the energy company’s stock valued at $90,000 after acquiring an additional 2,950 shares during the period. 94.63% of the stock is owned by hedge funds and other institutional investors.
Southwestern Energy Company Profile
Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States. It operates through two segments, Exploration and Production, and Midstream. The company focuses on the development of unconventional natural gas reservoirs located in Pennsylvania and West Virginia.
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