Zacks Investment Research upgraded shares of China Petroleum & Chemical (NYSE:SNP) from a sell rating to a hold rating in a research note issued to investors on Wednesday.
According to Zacks, “We appreciate Sinopec’s large-scale natural gas discoveries, especially in the Shunbei area in Xinjiang Tarim Basin, Hangjinqi of Nei Mongol, Dongpo of west Sichuan and Weirong block in southwestern Sichuan province, which will support long-term production. Sinopec’s dividend yield is also impressive and higher than that of the industry. Sinopec’s debt-to-capitalization ratio is 11.4%, significantly lower than the industry’s 49.4%. This reflects the company’s strong balance sheet. However, we believe Sinopec’s matured domestic oil fields and associated rising costs will remain an overhang on its operations. As it is, Sinopec’s operating expenses rose in 2017 and the trend continued through the first six months of 2018. Moreover, declining oil production amid recovering crude prices is hurting the company’s upstream business. Given these factors, we prefer to wait for a better entry point.”
Several other research analysts have also recently commented on SNP. Goldman Sachs Group cut shares of China Petroleum & Chemical from a buy rating to a neutral rating in a research report on Monday, June 4th. They noted that the move was a valuation call. ValuEngine upgraded shares of China Petroleum & Chemical from a hold rating to a buy rating in a research report on Tuesday, July 24th. Four research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. China Petroleum & Chemical currently has an average rating of Hold and a consensus target price of $106.00.
China Petroleum & Chemical (NYSE:SNP) last posted its earnings results on Sunday, August 26th. The oil and gas company reported $2.82 EPS for the quarter, topping the consensus estimate of $1.68 by $1.14. China Petroleum & Chemical had a net margin of 2.71% and a return on equity of 7.14%. The firm had revenue of $106.54 billion during the quarter. equities research analysts expect that China Petroleum & Chemical will post 9.72 earnings per share for the current fiscal year.
The business also recently declared a special dividend, which will be paid on Friday, September 28th. Stockholders of record on Thursday, September 6th will be paid a $2.3455 dividend. This is a positive change from China Petroleum & Chemical’s previous special dividend of $1.51. This represents a dividend yield of 12.6%. The ex-dividend date of this dividend is Wednesday, September 5th. China Petroleum & Chemical’s dividend payout ratio is currently 74.69%.
Several large investors have recently modified their holdings of the company. Renaissance Technologies LLC lifted its stake in shares of China Petroleum & Chemical by 2.7% in the 2nd quarter. Renaissance Technologies LLC now owns 1,533,500 shares of the oil and gas company’s stock worth $137,770,000 after acquiring an additional 40,870 shares during the period. Pendal Group Ltd lifted its stake in China Petroleum & Chemical by 4.5% during the second quarter. Pendal Group Ltd now owns 416,784 shares of the oil and gas company’s stock valued at $37,444,000 after purchasing an additional 17,871 shares during the last quarter. Northern Trust Corp lifted its stake in China Petroleum & Chemical by 5.0% during the second quarter. Northern Trust Corp now owns 370,208 shares of the oil and gas company’s stock valued at $33,260,000 after purchasing an additional 17,546 shares during the last quarter. Royal Bank of Canada lifted its stake in China Petroleum & Chemical by 19.1% during the first quarter. Royal Bank of Canada now owns 322,910 shares of the oil and gas company’s stock valued at $28,572,000 after purchasing an additional 51,676 shares during the last quarter. Finally, Aperio Group LLC lifted its stake in China Petroleum & Chemical by 17.1% during the second quarter. Aperio Group LLC now owns 173,683 shares of the oil and gas company’s stock valued at $15,604,000 after purchasing an additional 25,398 shares during the last quarter. 1.04% of the stock is owned by institutional investors.
About China Petroleum & Chemical
China Petroleum & Chemical Corporation, an energy and chemical company, engages in the oil and gas, and chemical operations and businesses in the People's Republic of China. It operates through five segments: Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others.
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