Zacks Investment Research downgraded shares of Oasis Petroleum (NYSE:OAS) from a hold rating to a sell rating in a report released on Friday morning.
According to Zacks, “Investment thesis of Oasis Petroleum has been revised downward from 'Hold' to 'Sell' owing to multiple headwinds. Over the past three months, the shares of Oasis Petroleum have plunged about 47%, wider than the the broader industry's loss of 26% owing to falling crude prices amid an oversupplied market. With the company's operations mainly focused on Williston Basin, Oasis Petroleum faces lack of geographical diversification. Even though the company has tried to diversify its holdings by Delaware acreage buyout, the hefty premium paid for it is not appreciated. As it is, Delaware region itself is facing pipeline crisis and service cost inflation, which may limit OAS's margins. Further, the company issued more stocks to fund the cash portion of the deal, which led to stock dilution. Moreover, Oasis Petroleum has slashed fourth quarter production guidance range dampening investors' sentiments. “
A number of other brokerages also recently commented on OAS. Capital One Financial downgraded shares of Oasis Petroleum from an overweight rating to an underweight rating in a report on Thursday, December 20th. Oppenheimer started coverage on shares of Oasis Petroleum in a report on Wednesday, October 3rd. They issued a market perform rating for the company. Wolfe Research raised shares of Oasis Petroleum from a market perform rating to an outperform rating in a report on Wednesday, October 17th. Cowen started coverage on shares of Oasis Petroleum in a report on Thursday, November 29th. They issued a market perform rating for the company. Finally, Williams Capital set a $17.00 price target on shares of Oasis Petroleum and gave the company a buy rating in a report on Tuesday, November 6th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and fourteen have issued a buy rating to the stock. Oasis Petroleum has a consensus rating of Hold and an average price target of $13.95.
OAS opened at $6.33 on Friday. The company has a quick ratio of 0.55, a current ratio of 0.59 and a debt-to-equity ratio of 0.72. Oasis Petroleum has a 52 week low of $4.74 and a 52 week high of $14.57. The stock has a market cap of $2.09 billion, a price-to-earnings ratio of 316.50, a P/E/G ratio of 0.65 and a beta of 2.21.
Oasis Petroleum (NYSE:OAS) last announced its quarterly earnings results on Monday, November 5th. The energy producer reported $0.08 EPS for the quarter, missing the Zacks’ consensus estimate of $0.12 by ($0.04). Oasis Petroleum had a negative net margin of 7.08% and a positive return on equity of 3.12%. The business had revenue of $546.50 million during the quarter, compared to the consensus estimate of $455.65 million. The firm’s revenue for the quarter was up 79.4% on a year-over-year basis. On average, sell-side analysts forecast that Oasis Petroleum will post 0.38 EPS for the current fiscal year.
In other Oasis Petroleum news, insider Taylor L. Reid sold 30,000 shares of the firm’s stock in a transaction dated Monday, November 19th. The shares were sold at an average price of $8.04, for a total value of $241,200.00. Following the completion of the sale, the insider now owns 1,216,576 shares of the company’s stock, valued at $9,781,271.04. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.50% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Tokio Marine Asset Management Co. Ltd. purchased a new position in shares of Oasis Petroleum during the third quarter worth approximately $157,000. Cornerstone Wealth Management LLC increased its position in shares of Oasis Petroleum by 96.9% during the third quarter. Cornerstone Wealth Management LLC now owns 18,268 shares of the energy producer’s stock worth $2,167,000 after acquiring an additional 8,990 shares during the period. Cpwm LLC purchased a new position in shares of Oasis Petroleum during the third quarter worth approximately $306,000. Commonwealth Bank of Australia purchased a new position in shares of Oasis Petroleum during the third quarter worth approximately $323,000. Finally, Tower Research Capital LLC TRC increased its position in shares of Oasis Petroleum by 32.9% during the second quarter. Tower Research Capital LLC TRC now owns 23,405 shares of the energy producer’s stock worth $303,000 after acquiring an additional 5,794 shares during the period. 97.42% of the stock is owned by institutional investors and hedge funds.
Oasis Petroleum Company Profile
Oasis Petroleum Inc, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the North Dakota and Montana regions of the Williston Basin, and Permian Basin. As of December 31, 2017, the company had 502,660 net leasehold acres in the Williston Basin; and approximately 312.2 million barrels of oil equivalent of estimated net proved reserves.
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