In a report released yesterday, Kalei Akamine from Bank of America Securities maintained a Hold rating on EOG Resources, with a price target of $124.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Kalei Akamine has given his Hold rating due to a combination of factors influencing EOG Resources’ financial standing and future prospects. Despite EOG Resources reporting an adjusted EPS that surpassed expectations, the company’s cash usage was higher than anticipated, which significantly impacted its net cash position. The substantial cash outflow, driven by strategic acquisitions and shareholder returns, has reduced EOG’s cash reserves by half, raising concerns about its financial flexibility.
Furthermore, while the acquisition of Encino is expected to enhance production, the updated guidance aligns with expectations, suggesting limited immediate upside. The anticipated tax benefits and production efficiencies provide some positive outlook, but the overall financial performance and strategic cash utilization suggest a cautious stance. Consequently, the limited potential for stock price appreciation relative to the price objective supports the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $140.00 price target.
Based on the recent corporate insider activity of 95 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 EOG in relation to earlier this year.