Cabot Oil & Gas (COG) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of Cabot Oil & Gas (NYSE:COG) from a hold rating to a sell rating in a research report released on Tuesday.

According to Zacks, “Based on the number of near-term challenges, the investment thesis for Cabot Oil & Gas is lowered to Sell from Hold. Being a natural gas-weighted company, Cabot continues to reel under the effects of the commodity's price struggles, which is struggling to stay above the $3 level for a prolonged period. Negative free cash flow during the most recent quarter, lowering of annual production guidance and setbacks in the development of the Constitution pipeline also keep us worried. Considering these factors, Cabot Oil & Gas is viewed as a risky bet., which forms the basis of the bearish stance.”

Other research analysts also recently issued research reports about the stock. ValuEngine downgraded shares of Cabot Oil & Gas from a hold rating to a sell rating in a research note on Tuesday, June 26th. TD Securities started coverage on shares of Cabot Oil & Gas in a research report on Thursday, July 5th. They set a buy rating and a $29.00 price objective for the company. Morgan Stanley boosted their price objective on shares of Cabot Oil & Gas from $28.00 to $29.00 and gave the stock an overweight rating in a research report on Thursday, July 12th. UBS Group raised shares of Cabot Oil & Gas from a neutral rating to a positive rating in a report on Monday, July 30th. Finally, Susquehanna Bancshares raised shares of Cabot Oil & Gas from a neutral rating to a positive rating and boosted their price objective for the company from $27.00 to $28.00 in a research note on Monday, July 30th. Three investment analysts have rated the stock with a sell rating, seven have issued a hold rating and sixteen have issued a buy rating to the company. Cabot Oil & Gas has a consensus rating of Buy and a consensus target price of $29.19.

Cabot Oil & Gas stock opened at $23.38 on Tuesday. Cabot Oil & Gas has a 12-month low of $21.48 and a 12-month high of $29.57. The stock has a market cap of $9.94 billion, a P/E ratio of 48.71, a PEG ratio of 0.77 and a beta of 0.41. The company has a quick ratio of 1.64, a current ratio of 1.67 and a debt-to-equity ratio of 0.57.

Cabot Oil & Gas (NYSE:COG) last announced its quarterly earnings results on Friday, July 27th. The oil and gas exploration company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.05). Cabot Oil & Gas had a net margin of 7.75% and a return on equity of 10.84%. The company had revenue of $453.50 million for the quarter, compared to analyst estimates of $384.57 million. During the same quarter in the prior year, the business earned $0.14 earnings per share. Cabot Oil & Gas’s revenue was down 1.5% on a year-over-year basis. As a group, equities research analysts predict that Cabot Oil & Gas will post 0.97 earnings per share for the current year.

Several hedge funds and other institutional investors have recently modified their holdings of COG. Piedmont Investment Advisors LLC purchased a new stake in shares of Cabot Oil & Gas during the 2nd quarter worth $123,000. Cerebellum GP LLC boosted its position in shares of Cabot Oil & Gas by 198.9% during the 3rd quarter. Cerebellum GP LLC now owns 7,671 shares of the oil and gas exploration company’s stock worth $173,000 after purchasing an additional 5,105 shares in the last quarter. Parkwood LLC purchased a new stake in shares of Cabot Oil & Gas during the 2nd quarter worth $212,000. Welch & Forbes LLC purchased a new stake in shares of Cabot Oil & Gas during the 2nd quarter worth $214,000. Finally, BB&T Securities LLC purchased a new stake in shares of Cabot Oil & Gas during the 2nd quarter worth $215,000. Institutional investors own 94.74% of the company’s stock.

Cabot Oil & Gas Company Profile

Cabot Oil & Gas Corporation, an independent oil and gas company, explores for, exploits, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States. It primarily focuses on the Marcellus Shale with approximately 172,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; and the Eagle Ford Shale with approximately 79,000 net acres in the oil window of the play located in Atascosa, Frio, and La Salle Counties, Texas.

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