Zacks Investment Research lowered shares of Denbury Resources Inc. (NYSE:DNR) from a hold rating to a strong sell rating in a research note published on Tuesday morning.
According to Zacks, “Denbury’s total proved reserve – majority of which is oil – has been decreasing steadily over the last two years. Since 2014, estimated reserves fell over 40%, which is a matter of concern. Declining reserves raise questions over the company’s production capabilities which might hurt cashflow for shareholders. Moreover, Denbury’s cash balances have been on the decline since 2015, making the current low of $2 million as of Mar 31, 2017. Long-term debt stands at almost $3 billion, signifying weak financials. Also, since the beginning of 2013, there has been a steady decline in cashflow from the company’s core operations. Weak businesses following persistently low oil and natural gas prices have compelled the company to suspend dividend payment since the beginning of the fourth quarter of 2015.”
DNR has been the topic of a number of other reports. Stifel Nicolaus restated a hold rating and set a $2.50 price target on shares of Denbury Resources in a research report on Friday, July 14th. BMO Capital Markets decreased their price target on Denbury Resources from $2.00 to $1.00 and set a no rating at time rating on the stock in a research report on Friday, July 14th. ValuEngine lowered Denbury Resources from a hold rating to a sell rating in a research report on Friday, June 2nd. Credit Suisse Group restated an underperform rating and set a $2.00 price target on shares of Denbury Resources in a research report on Friday, June 2nd. Finally, UBS AG restated a sell rating and set a $1.50 price target (down from $2.00) on shares of Denbury Resources in a research report on Friday, May 5th. Six investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $2.64.
Denbury Resources (NYSE:DNR) traded down 2.431% on Tuesday, reaching $1.405. The company had a trading volume of 1,969,178 shares. Denbury Resources has a one year low of $1.27 and a one year high of $4.29. The stock’s market cap is $547.10 million. The company has a 50-day moving average of $1.49 and a 200 day moving average of $2.39.
Denbury Resources (NYSE:DNR) last issued its earnings results on Thursday, May 4th. The oil and natural gas company reported ($0.02) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.01) by $0.01. Denbury Resources had a positive return on equity of 2.49% and a negative net margin of 72.85%. The company had revenue of $264 million during the quarter, compared to analyst estimates of $254.67 million. During the same period in the previous year, the company posted ($0.03) earnings per share. The company’s quarterly revenue was up 35.5% on a year-over-year basis. On average, equities research analysts predict that Denbury Resources will post $0.04 EPS for the current year.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in shares of Denbury Resources by 18.3% in the first quarter. Vanguard Group Inc. now owns 56,483,974 shares of the oil and natural gas company’s stock worth $145,729,000 after buying an additional 8,753,615 shares during the last quarter. BlackRock Inc. raised its position in shares of Denbury Resources by 15,599.0% in the first quarter. BlackRock Inc. now owns 47,422,302 shares of the oil and natural gas company’s stock worth $122,349,000 after buying an additional 47,120,229 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Denbury Resources by 146.4% in the first quarter. Dimensional Fund Advisors LP now owns 8,529,233 shares of the oil and natural gas company’s stock worth $22,004,000 after buying an additional 5,067,230 shares during the last quarter. Norges Bank purchased a new position in shares of Denbury Resources during the fourth quarter worth approximately $25,138,000. Finally, Bank of New York Mellon Corp raised its position in shares of Denbury Resources by 9.0% in the first quarter. Bank of New York Mellon Corp now owns 5,083,342 shares of the oil and natural gas company’s stock worth $13,114,000 after buying an additional 418,308 shares during the last quarter. Hedge funds and other institutional investors own 91.11% of the company’s stock.
About Denbury Resources
Denbury Resources Inc is an independent oil and natural gas company. The Company’s operations are focused in two operating areas: the Gulf Coast and Rocky Mountain regions. Its properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming.
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