Morgan Stanley Issues Pessimistic Forecast for Expand Energy (NASDAQ:EXE) Stock Price

Key Points

• Morgan Stanley lowered Expand Energy’s price target to $123 from $124 but maintained an “overweight” rating, implying roughly 36% upside from the stock’s recent $90.20 price.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average target of $123.16, despite several firms trimming their estimates.
• Expand Energy beat third-quarter earnings and revenue expectations, but weak natural-gas prices have prompted production cuts and weighed on investor sentiment; the stock fell 1.5% in recent trading.

Expand Energy (NASDAQ:EXE - Get Free Report) had its price objective reduced by research analysts at Morgan Stanley from $124.00 to $123.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's price target would suggest a potential upside of 36.37% from the company's current price.

A number of other research analysts have also commented on the company. Barclays lowered their price objective on Expand Energy from $110.00 to $107.00 and set an "equal weight" rating on the stock in a report on Monday, August 17th. Weiss Ratings downgraded shares of Expand Energy from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, August 12th. Jefferies Financial Group lowered their target price on Expand Energy from $143.00 to $136.00 and set a "buy" rating on the stock in a report on Thursday, October 1st. Stifel Nicolaus started coverage on shares of Expand Energy in a research note on Wednesday, September 9th. They issued a "buy" rating and a $135.00 price objective on the stock. Finally, UBS Group cut their target price on shares of Expand Energy from $122.00 to $120.00 and set a "buy" rating for the company in a research note on Thursday, October 15th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, Expand Energy has a consensus rating of "Moderate Buy" and an average price target of $123.16.

Expand Energy Stock Down 1.5%

Shares of NASDAQ EXE traded down $1.37 on Thursday, hitting $90.20. The company had a trading volume of 1,195,161 shares, compared to its average volume of 3,553,201. The firm has a market capitalization of $20.88 billion, a P/E ratio of 7.80 and a beta of 0.41. Expand Energy has a 12-month low of $83.25 and a 12-month high of $126.62. The business has a 50 day moving average of $92.17 and a two-hundred day moving average of $96.92. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.19.

Expand Energy (NASDAQ:EXE - Get Free Report) last announced its earnings results on Tuesday, October 27th. The company reported $1.46 earnings per share for the quarter, beating the consensus estimate of $1.29 by $0.17. The company had revenue of $3.29 billion during the quarter, compared to the consensus estimate of $2.85 billion. Expand Energy had a return on equity of 10.33% and a net margin of 20.46%. As a group, equities research analysts forecast that Expand Energy will post 8.59 earnings per share for the current fiscal year.

Institutional Trading of Expand Energy

A number of hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of Expand Energy in the second quarter worth $1,778,004,000. Oaktree Capital Management LP increased its holdings in shares of Expand Energy by 3.5% during the first quarter. Oaktree Capital Management LP now owns 5,237,477 shares of the company's stock valued at $574,970,000 after acquiring an additional 175,114 shares in the last quarter. Bank of New York Mellon Corp increased its holdings in Expand Energy by 94.7% in the 1st quarter. Bank of New York Mellon Corp now owns 4,498,905 shares of the company's stock worth $493,890,000 after buying an additional 2,188,422 shares during the period. Dimensional Fund Advisors LP raised its position in Expand Energy by 7.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,466,772 shares of the company's stock valued at $270,838,000 after acquiring an additional 166,407 shares in the last quarter. Finally, Bank of America Corp DE raised its position in shares of Expand Energy by 9.9% in the first quarter. Bank of America Corp DE now owns 1,921,098 shares of the company's stock worth $210,898,000 after acquiring an additional 173,503 shares during the period. Institutional investors and hedge funds own 97.93% of the company's stock.

Expand Energy News Summary

Here are the key news stories impacting Expand Energy this week:

• Positive Sentiment: Q3 results exceeded expectations: Expand Energy reported adjusted earnings of $1.46 per share, above the $1.29 consensus estimate, while revenue of $3.29 billion substantially exceeded the $2.85 billion forecast. Earnings also rose from $0.97 per share a year earlier. Expand Energy Surpasses Q3 Earnings Estimates
• Positive Sentiment: Marketing growth is a strategic catalyst: Management is targeting $500 million in marketing EBITDA by 2028, using its marketing platform, hedges and operational flexibility to offset low gas prices. EXE Q3 Earnings Call Eyes Marketing Growth Amid Gas Price Weakness
• Positive Sentiment: Analyst targets remain above the current valuation: Truist raised its price target to $122 and maintained a Buy rating, while Bernstein lifted its target to $139, suggesting considerable potential upside if industry conditions improve. Truist Financial Rating Bernstein Adjusts Price Target
• Positive Sentiment: Dividend supports shareholder returns: Expand Energy declared a quarterly dividend of $0.575 per share, or $2.30 annualized, payable December 3 to shareholders of record November 12. Expand Energy Dividend Announcement
• Neutral Sentiment: Analyst views are mixed: JPMorgan lowered its price target to $121 from $124, although that target remains well above recent trading levels. JPMorgan Adjusts Price Target
• Negative Sentiment: Weak natural-gas prices are weighing on sentiment: Expand Energy is curbing some production in response to unfavorable pricing. That action may protect cash flow, but it also signals softer near-term volumes and revenue expectations. Expand Energy Curbs Production on Weaker Gas Prices
• Negative Sentiment: Bearish trading activity increased: Investors purchased 11,605 put options, 51% above average volume, indicating elevated demand for downside protection or speculation on further weakness.

Expand Energy Company Profile

Expand Energy Corporation NASDAQ: EXE is an independent energy company focused on the exploration, development and production of natural gas, crude oil and natural gas liquids in the United States. The company's activities include drilling and operating unconventional oil and gas wells, primarily in major shale formations.

Expand Energy was formed through the combination of Chesapeake Energy Corporation and Southwestern Energy Company, a transaction completed in October 2024. Chesapeake's portfolio included assets in the Marcellus, Haynesville and Eagle Ford shale plays, while Southwestern was also a major operator in the Appalachian and Haynesville regions.

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