Permian Resources (NYSE:PR) Rating Lowered to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Permian Resources from “strong buy” to “buy.” Analysts overall remain positive: the consensus rating is “buy,” with an average price target of $26.61.
• Permian Resources beat quarterly estimates, reporting EPS of $0.69 versus $0.61 expected and revenue of $1.96 billion versus $1.78 billion expected; revenue increased 48.1% year over year.
• Analyst views were mixed on price targets: Wells Fargo lowered its target to $27 while keeping an Overweight rating, whereas Truist, Susquehanna, and UBS raised their targets.

Permian Resources (NYSE:PR - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

PR has been the topic of a number of other research reports. Wells Fargo & Company dropped their price objective on Permian Resources from $28.00 to $27.00 and set an "overweight" rating on the stock in a research note on Friday. Truist Financial raised their price objective on shares of Permian Resources from $24.00 to $28.00 and gave the company a "buy" rating in a research report on Monday, October 12th. Susquehanna boosted their price target on shares of Permian Resources from $25.00 to $30.00 and gave the company a "positive" rating in a research report on Tuesday, October 20th. Raymond James Financial reiterated a "strong-buy" rating and set a $34.00 target price on shares of Permian Resources in a research report on Monday. Finally, UBS Group upped their price target on shares of Permian Resources from $24.00 to $29.00 and gave the company a "buy" rating in a research note on Monday, September 14th. Five equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Permian Resources has a consensus rating of "Buy" and an average target price of $26.61.

Permian Resources Price Performance

Shares of PR opened at $21.68 on Friday. Permian Resources has a 1-year low of $12.75 and a 1-year high of $26.07. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.62 and a quick ratio of 0.62. The firm has a market capitalization of $18.15 billion, a PE ratio of 11.29 and a beta of 0.62. The company's fifty day moving average price is $23.36 and its 200-day moving average price is $20.53.

Permian Resources (NYSE:PR - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.08. Permian Resources had a return on equity of 13.47% and a net margin of 21.52%. The company had revenue of $1.96 billion for the quarter, compared to analysts' expectations of $1.78 billion. During the same quarter in the previous year, the firm posted $0.08 EPS. The firm's quarterly revenue was up 48.1% on a year-over-year basis. On average, equities research analysts predict that Permian Resources will post 2.47 EPS for the current year.

Insiders Place Their Bets

In other news, EVP Robert Shannon sold 5,104 shares of the company's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $23.75, for a total value of $121,220.00. Following the completion of the transaction, the executive vice president owned 1,346,698 shares of the company's stock, valued at $31,984,077.50. This represents a 0.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP John Bell sold 5,492 shares of the firm's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $23.75, for a total transaction of $130,435.00. Following the completion of the transaction, the executive vice president directly owned 1,561,680 shares of the company's stock, valued at approximately $37,089,900. This represents a 0.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 15,699 shares of company stock worth $372,851. 5.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Permian Resources

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP raised its position in shares of Permian Resources by 3.9% during the second quarter. Wellington Management Group LLP now owns 20,156,113 shares of the company's stock valued at $371,074,000 after buying an additional 763,059 shares during the last quarter. Jennison Associates LLC increased its stake in Permian Resources by 63.1% in the first quarter. Jennison Associates LLC now owns 6,230,034 shares of the company's stock valued at $132,824,000 after acquiring an additional 2,411,292 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Permian Resources in the first quarter worth $121,041,000. First Trust Advisors LP lifted its position in shares of Permian Resources by 66.6% during the 1st quarter. First Trust Advisors LP now owns 5,564,528 shares of the company's stock valued at $118,636,000 after acquiring an additional 2,224,560 shares during the period. Finally, Principal Financial Group Inc. boosted its stake in Permian Resources by 1.8% during the 1st quarter. Principal Financial Group Inc. now owns 4,733,183 shares of the company's stock valued at $100,911,000 after purchasing an additional 85,509 shares during the last quarter. Institutional investors own 91.84% of the company's stock.

Permian Resources News Roundup

Here are the key news stories impacting Permian Resources this week:

• Positive Sentiment: Q3 results beat estimates: Permian Resources reported adjusted earnings of $0.69 per share versus the roughly $0.61 consensus and revenue of $1.96 billion versus $1.78 billion expected. Revenue rose 48.1% year over year. Zacks Q3 earnings report
• Positive Sentiment: Higher production and cash-flow outlook: Q3 total production averaged 457,500 barrels of oil equivalent per day, up 22% sequentially. A separate report highlighted a $300 million free-cash-flow outlook upgrade, which may support confidence in the company’s ability to fund operations and shareholder returns. Q3 results and guidance Free-cash-flow outlook report
• Positive Sentiment: Quarterly dividend declared: The company announced a $0.16-per-share dividend, equivalent to $0.64 annualized, with payment scheduled for December 31. Permian Resources dividend information
• Neutral Sentiment: Acquisition expands the business but requires significant capital: Permian Resources acquired Ridge Runner Resources II for $1.2 billion. The deal may add assets and production, but its ultimate effect will depend on execution and returns. Acquisition report
• Negative Sentiment: Wells Fargo trimmed its target: The bank lowered its price target from $28 to $27, a modest reduction in its valuation view, but retained an Overweight rating and still indicated potential upside. Wells Fargo price-target update
• Negative Sentiment: Costs merit attention: A Q3 recap flagged record costs, which could weigh on margins if they persist, despite the reported free-cash-flow outlook improvement. Q3 cost and cash-flow report

About Permian Resources

Permian Resources Corporation NYSE: PR is an independent oil and natural gas company focused on the acquisition, development, and production of hydrocarbons in the Permian Basin. Its operations are concentrated in the Delaware Basin, a prolific oil-producing region spanning southeastern New Mexico and West Texas.

The company's production portfolio includes crude oil, natural gas, and natural gas liquids. Permian Resources develops its acreage through horizontal drilling and multi-well development programs, with activities that include drilling, completion, production, and infrastructure management.

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