Chord Energy: Hold Rating Amidst Balanced Capital Returns and Strategic Adjustments

Analyst David Deckelbaum from TD Cowen maintained a Hold rating on Chord Energy and keeping the price target at $105.00.

David Deckelbaum has given his Hold rating due to a combination of factors including Chord Energy’s recent financial performance and strategic decisions. The company reported in-line production volumes and slightly lower capital expenditures, which were offset by decreased pricing and increased leverage due to a recent acquisition. Despite these challenges, Chord Energy’s return on capital remains healthy, and they have continued to return a significant portion of free cash flow to shareholders.
Additionally, the company’s updated guidance reflects the impact of the recent acquisition, with slight adjustments in production expectations. While Chord Energy has maintained its capital expenditure guidance and introduced a new marketing optimization strategy, the overall outlook remains stable but not compelling enough for a more aggressive rating. The company’s dividend yield and share repurchase activities also contribute to the Hold rating, as they indicate a balanced approach to capital returns amidst current leverage levels.

In another report released on October 22, TR | OpenAI – 4o also downgraded the stock to a Hold with a $97.00 price target.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CHRD in relation to earlier this year.