Concho Resources (CXO) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research downgraded shares of Concho Resources (NYSE:CXO) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.

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.”

Several other brokerages have also issued reports on CXO. Scotiabank set a $145.00 target price on Concho Resources and gave the company a buy rating in a research report on Saturday, November 25th. Barclays raised their target price on Concho Resources from $144.00 to $156.00 and gave the company an overweight rating in a research report on Monday, November 20th. Stifel Nicolaus set a $185.00 target price on Concho Resources and gave the company a buy rating in a research report on Thursday, October 5th. Jefferies Group raised Concho Resources from a hold rating to a buy rating and set a $159.00 price objective for the company in a report on Monday, October 9th. Finally, SunTrust Banks set a $145.00 price objective on Concho Resources and gave the stock a buy rating in a report on Tuesday, October 31st. Nine investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. The stock presently has a consensus rating of Buy and a consensus target price of $153.89.

Shares of Concho Resources (NYSE:CXO) traded down $2.34 during trading on Wednesday, hitting $135.97. The stock had a trading volume of 964,500 shares, compared to its average volume of 1,272,063. Concho Resources has a 1 year low of $106.73 and a 1 year high of $147.77. The stock has a market cap of $20,566.14, a price-to-earnings ratio of 83.32 and a beta of 1.09. The company has a current ratio of 0.66, a quick ratio of 0.66 and a debt-to-equity ratio of 0.32.

Concho Resources (NYSE:CXO) last announced its earnings results on Tuesday, October 31st. The oil and natural gas company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.19. Concho Resources had a return on equity of 2.92% and a net margin of 24.19%. The firm had revenue of $627.00 million during the quarter, compared to analyst estimates of $614.12 million. During the same period last year, the firm posted $0.32 EPS. The business’s revenue was up 45.8% compared to the same quarter last year. equities analysts forecast that Concho Resources will post 1.82 EPS for the current fiscal year.

A number of institutional investors and hedge funds have recently made changes to their positions in CXO. Toronto Dominion Bank boosted its stake in Concho Resources by 12.4% in the 3rd quarter. Toronto Dominion Bank now owns 56,398 shares of the oil and natural gas company’s stock worth $7,428,000 after purchasing an additional 6,206 shares during the period. Nordea Investment Management AB boosted its stake in Concho Resources by 33.6% in the 2nd quarter. Nordea Investment Management AB now owns 7,968 shares of the oil and natural gas company’s stock worth $968,000 after purchasing an additional 2,003 shares during the period. Texas Capital Bancshares Inc. TX boosted its stake in Concho Resources by 5.5% in the 3rd quarter. Texas Capital Bancshares Inc. TX now owns 7,274 shares of the oil and natural gas company’s stock worth $958,000 after purchasing an additional 380 shares during the period. Capital Advisors Inc. OK bought a new position in Concho Resources in the 2nd quarter worth about $2,093,000. Finally, Birinyi Associates Inc. boosted its stake in Concho Resources by 4.3% in the 2nd quarter. Birinyi Associates Inc. now owns 11,000 shares of the oil and natural gas company’s stock worth $1,337,000 after purchasing an additional 450 shares during the period. 94.55% of the stock is owned by institutional investors.

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About Concho Resources

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.

Analyst Recommendations for Concho Resources (NYSE:CXO)

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