Zacks Investment Research Lowers Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to Sell

Zacks Investment Research downgraded shares of Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) from a hold rating to a sell rating in a research note released on Tuesday, Zacks.com reports. Zacks Investment Research currently has $12.00 price target on the oil and gas exploration company’s stock.

According to Zacks, “Brazil's state-run energy giant Petrobras is riding high on the back of its impressive portfolio, particularly in the country’s pre-salt reservoirs. It is the operator in most of these exploration areas and holds interests in them ranging from 20% to 100%. This puts Petrobras in an enviable position to maintain an impressive production growth profile for years to come. Meanwhile, the company’s ambitious divestment plans appear to be working well as far as deleveraging is concerned. Having said all of this, the fact that Rio de Janeiro-based Petrobras is still reeling under huge debt burden cannot be overlooked. The firm is also having to deal with years of mismanagement and corruption, while investors remain wary of the risk of political interference. As such, Petrobras warrants a cautious stance at the moment.”

Other equities analysts also recently issued research reports about the stock. The Goldman Sachs Group upgraded shares of Petróleo Brasileiro S.A. – Petrobras from a neutral rating to a buy rating and set a $14.20 target price for the company in a research note on Wednesday, December 15th. HSBC raised shares of Petróleo Brasileiro S.A. – Petrobras from a hold rating to a buy rating in a research note on Tuesday, November 16th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of Hold and a consensus price target of $12.62.

NYSE PBR opened at $12.61 on Tuesday. Petróleo Brasileiro S.A. – Petrobras has a 52-week low of $7.06 and a 52-week high of $12.62. The company has a 50-day simple moving average of $10.77 and a 200 day simple moving average of $10.69. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.91 and a current ratio of 1.20. The company has a market capitalization of $82.24 billion, a PE ratio of 3.20, a price-to-earnings-growth ratio of 0.18 and a beta of 1.75.

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) last posted its quarterly earnings data on Thursday, October 28th. The oil and gas exploration company reported $0.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.20). The company had revenue of $23.26 billion for the quarter, compared to analysts’ expectations of $22.36 billion. Petróleo Brasileiro S.A. – Petrobras had a return on equity of 25.88% and a net margin of 34.87%. As a group, analysts forecast that Petróleo Brasileiro S.A. – Petrobras will post 2.93 EPS for the current fiscal year.

The business also recently announced a — dividend, which was paid on Wednesday, December 22nd. Shareholders of record on Friday, December 3rd were given a dividend of $0.381 per share. The ex-dividend date of this dividend was Thursday, December 2nd. This is a positive change from Petróleo Brasileiro S.A. – Petrobras’s previous — dividend of $0.29. This represents a yield of 19.4%. Petróleo Brasileiro S.A. – Petrobras’s payout ratio is presently 19.29%.

Institutional investors have recently made changes to their positions in the business. D Orazio & Associates Inc. bought a new stake in Petróleo Brasileiro S.A. – Petrobras during the third quarter valued at approximately $27,000. Activest Wealth Management bought a new stake in Petróleo Brasileiro S.A. – Petrobras during the second quarter valued at approximately $36,000. McIlrath & Eck LLC bought a new stake in Petróleo Brasileiro S.A. – Petrobras during the third quarter valued at approximately $35,000. Rockefeller Capital Management L.P. bought a new stake in Petróleo Brasileiro S.A. – Petrobras during the second quarter valued at approximately $49,000. Finally, Koshinski Asset Management Inc. bought a new stake in shares of Petróleo Brasileiro S.A. – Petrobras in the 4th quarter worth approximately $51,000. Institutional investors and hedge funds own 10.84% of the company’s stock.

About Petróleo Brasileiro S.A. – Petrobras

Petróleo Brasileiro SA engages in oil and gas exploration, production, and distribution activities. It operates through the following segments: Exploration and Production; Refining, Transportation, and Marketing; Gas and Power; and Corporate and Other Business. The Exploration and Production segment involves crude oil, natural gas liquids, and natural gas exploration, development, and production.

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