Zacks Investment Research downgraded shares of CNX Resources (NYSE:CNX) from a hold rating to a strong sell rating in a research note issued to investors on Wednesday, December 27th.
According to Zacks, “CNX Resources Corporation was formed from the separation of natural gas and coal business of CONSOL Energy Inc.’s (CONSOL). This oil and natural gas company is focused on low-cost Appalachian region but will have to fight a difficult battle with the existing major natural gas companies. Failure on the part of the company to replenish its reserves may impact its production and cash flow. Exploration and production of natural gas involve lots of risks and could impact its operating results. Since its formation, CNX Resources’ shares have gained higher than the industry it belongs to. CNX Resources’ low cost natural gas production areas of CNX Resources and increasing consciousness to lower emissions will drive demand for natural gas and are going to act as tailwinds for the company.”
CNX has been the subject of a number of other reports. ValuEngine cut shares of CNX Resources from a hold rating to a sell rating in a report on Friday, September 1st. SunTrust Banks set a $17.00 target price on shares of CNX Resources and gave the company a hold rating in a research note on Tuesday, October 17th. B. Riley started coverage on shares of CNX Resources in a research note on Tuesday, November 21st. They issued a buy rating and a $32.00 target price for the company. Scotiabank set a $21.00 target price on shares of CNX Resources and gave the company a hold rating in a research note on Monday, November 13th. Finally, Stifel Nicolaus reiterated a buy rating and issued a $24.00 target price on shares of CNX Resources in a research note on Friday, October 13th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and eight have given a buy rating to the company. CNX Resources has an average rating of Hold and a consensus price target of $22.91.
CNX Resources (NYSE:CNX) last posted its quarterly earnings results on Tuesday, October 31st. The oil and gas producer reported ($0.11) earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.03 by ($0.14). The company had revenue of $671.30 million during the quarter, compared to analyst estimates of $623.00 million. CNX Resources had a positive return on equity of 1.09% and a negative net margin of 7.49%. The company’s revenue was down 10.0% compared to the same quarter last year. During the same period last year, the company posted $0.04 earnings per share. equities research analysts anticipate that CNX Resources will post 0.13 earnings per share for the current year.
CNX Resources declared that its Board of Directors has initiated a share repurchase plan on Tuesday, October 31st that allows the company to repurchase $369.00 million in outstanding shares. This repurchase authorization allows the oil and gas producer to purchase shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.
Hedge funds have recently made changes to their positions in the business. Dynamic Technology Lab Private Ltd bought a new position in shares of CNX Resources during the second quarter worth $573,000. Chicago Equity Partners LLC boosted its position in shares of CNX Resources by 62.5% during the second quarter. Chicago Equity Partners LLC now owns 127,505 shares of the oil and gas producer’s stock worth $1,905,000 after purchasing an additional 49,030 shares in the last quarter. Bridgewater Associates LP boosted its position in shares of CNX Resources by 252.0% during the second quarter. Bridgewater Associates LP now owns 65,283 shares of the oil and gas producer’s stock worth $975,000 after purchasing an additional 46,736 shares in the last quarter. Prudential Financial Inc. boosted its position in shares of CNX Resources by 820.6% during the second quarter. Prudential Financial Inc. now owns 1,034,553 shares of the oil and gas producer’s stock worth $15,456,000 after purchasing an additional 922,170 shares in the last quarter. Finally, IndexIQ Advisors LLC boosted its position in shares of CNX Resources by 358.1% during the second quarter. IndexIQ Advisors LLC now owns 106,471 shares of the oil and gas producer’s stock worth $1,590,000 after purchasing an additional 83,228 shares in the last quarter. 99.29% of the stock is currently owned by hedge funds and other institutional investors.
About CNX Resources
CNX Resources Corp., formerly CONSOL Energy Inc, is an integrated energy company. The Company’s divisions include Exploration and Production (E&P), Pennsylvania (PA) Mining Operations and Other. The E&P division operates through four segments: Marcellus Shale, Utica Shale, Coalbed Methane (CBM) and Other Gas, which produce pipeline quality natural gas for sale primarily to gas wholesalers.
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