Zacks Investment Research downgraded shares of Stone Energy (NYSE:SGY) from a buy rating to a hold rating in a research note released on Friday, January 5th.
According to Zacks, “Over the past year Stone Energy plunged 19.1%, underperforming the industry’s 13.6% decline. We are concerned about Stone Energy’s declining proved crude and natural gas reserves. This because lower expected production amid favorable oil and gas pricing scenario could hurt the company’s free cashflow. Also, growing exploration exposure to the mature, low reserve life and capital intensive GoM shelf is expected to aggravate Stone Energy’s risk profile. However, we appreciate the company’s intention to merge with Talos Energy LLC. The companies will create a leading exploration and production firm with extensive operations in offshore resources. Also, Stone Energy has no current debt and long-term debt decreased drastically since 2016. On top of that, over the aforesaid time period, the company’s cash balances surged, reflecting strong financial strength.”
Several other brokerages have also weighed in on SGY. BMO Capital Markets reissued a buy rating and set a $2.75 price objective on shares of Stone Energy in a report on Wednesday, November 15th. National Securities lowered shares of Stone Energy from a buy rating to a neutral rating in a report on Tuesday, November 28th. Scotiabank reissued a hold rating and set a $2.50 price objective on shares of Stone Energy in a report on Tuesday, October 10th. ValuEngine upgraded shares of Stone Energy from a strong sell rating to a sell rating in a research report on Tuesday, October 31st. Finally, Canaccord Genuity restated a buy rating and issued a $3.25 price target on shares of Stone Energy in a research report on Thursday, December 14th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and two have given a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus price target of $9.50.
Stone Energy (NYSE:SGY) last announced its quarterly earnings data on Wednesday, November 1st. The oil and natural gas company reported $0.06 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.31) by $0.37. The company had revenue of $79.53 million during the quarter. Stone Energy had a net margin of 68.43% and a return on equity of 590.23%. During the same period in the prior year, the business earned ($0.02) earnings per share. equities analysts forecast that Stone Energy will post -1.17 earnings per share for the current year.
Several institutional investors have recently bought and sold shares of SGY. Nationwide Fund Advisors bought a new position in shares of Stone Energy in the 2nd quarter worth about $204,000. Susquehanna International Group LLP bought a new stake in Stone Energy in the 3rd quarter valued at about $206,000. Federated Investors Inc. PA bought a new stake in Stone Energy in the 2nd quarter valued at about $207,000. Sei Investments Co. lifted its position in Stone Energy by 12.7% in the 2nd quarter. Sei Investments Co. now owns 13,039 shares of the oil and natural gas company’s stock valued at $240,000 after purchasing an additional 1,465 shares during the last quarter. Finally, New York State Common Retirement Fund bought a new stake in Stone Energy in the 2nd quarter valued at about $384,000. Institutional investors own 97.09% of the company’s stock.
About Stone Energy
Stone Energy Corporation is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company operates in the Gulf of Mexico (GOM) basin. It has leveraged its operations in the GOM conventional shelf and has its reserve base in the prolific basins of the GOM deep water, Gulf Coast deep gas, and the Marcellus and Utica shales in Appalachia.
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