Stifel Nicolaus Initiates Coverage on Permian Resources (NYSE:PR)

Key Points

• Stifel Nicolaus initiated coverage of Permian Resources with a “buy” rating and a $30 price target, implying 26.25% upside from the reported $23.76 share price.
• Analyst sentiment is broadly positive: the stock has a consensus “Buy” rating and a $24 average price target, supported by 6 Strong Buy, 13 Buy, and 3 Hold ratings.
• Permian Resources reported strong quarterly results, with EPS of $0.69 beating estimates by $0.10 and revenue rising 55.1% year over year to $1.86 billion.

Stifel Nicolaus assumed coverage on shares of Permian Resources (NYSE:PR - Get Free Report) in a note issued to investors on Thursday. The firm set a "buy" rating and a $30.00 price target on the stock. Stifel Nicolaus' target price would suggest a potential upside of 26.25% from the company's current price.

A number of other research analysts have also commented on the company. UBS Group lowered their price target on Permian Resources from $25.00 to $24.00 and set a "buy" rating on the stock in a report on Friday, July 17th. Morgan Stanley reaffirmed an "overweight" rating on shares of Permian Resources in a report on Wednesday, August 19th. Weiss Ratings upgraded shares of Permian Resources from a "hold (c+)" rating to a "buy (b)" rating in a research report on Thursday, August 13th. Wall Street Zen raised shares of Permian Resources from a "hold" rating to a "strong-buy" rating in a research note on Saturday, August 8th. Finally, Wells Fargo & Company upgraded shares of Permian Resources to a "strong-buy" rating in a research report on Wednesday, September 2nd. Six investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Permian Resources has an average rating of "Buy" and a consensus target price of $24.00.

Permian Resources Stock Performance

PR stock traded up $0.14 on Thursday, reaching $23.76. The company's stock had a trading volume of 422,420 shares, compared to its average volume of 11,496,711. Permian Resources has a 52 week low of $11.92 and a 52 week high of $24.20. The company has a market capitalization of $19.90 billion, a P/E ratio of 15.74 and a beta of 0.49. The firm has a fifty day moving average of $21.32 and a two-hundred day moving average of $20.33. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.62 and a quick ratio of 0.62.

Permian Resources (NYSE:PR - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.59 by $0.10. Permian Resources had a return on equity of 13.47% and a net margin of 21.52%.The firm had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.66 billion. During the same quarter in the previous year, the business earned $0.28 EPS. The firm's revenue for the quarter was up 55.1% on a year-over-year basis. As a group, analysts predict that Permian Resources will post 2.27 EPS for the current fiscal year.

Insider Activity at Permian Resources

In related news, EVP Guy Oliphint sold 5,103 shares of Permian Resources stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $23.75, for a total transaction of $121,196.25. Following the transaction, the executive vice president directly owned 537,400 shares of the company's stock, valued at $12,763,250. The trade was a 0.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 business's stock in a transaction dated 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 sale, the executive vice president owned 1,561,680 shares in the company, valued at approximately $37,089,900. This trade represents a 0.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 15,699 shares of company stock valued at $372,851 over the last 90 days. 5.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Permian Resources

Hedge funds have recently made changes to their positions in the business. SJS Investment Consulting Inc. lifted its stake in Permian Resources by 1,862.5% during the first quarter. SJS Investment Consulting Inc. now owns 1,413 shares of the company's stock valued at $30,000 after purchasing an additional 1,341 shares during the last quarter. SHP Wealth Management acquired a new position in Permian Resources in the fourth quarter worth approximately $27,000. Cedar Mountain Advisors LLC acquired a new position in Permian Resources in the first quarter worth approximately $48,000. Los Angeles Capital Management LLC bought a new position in shares of Permian Resources in the fourth quarter valued at $39,000. Finally, State of Wyoming increased its holdings in shares of Permian Resources by 126.8% in the fourth quarter. State of Wyoming now owns 2,933 shares of the company's stock valued at $41,000 after buying an additional 1,640 shares in the last quarter. Institutional investors and hedge funds own 91.84% of the company's stock.

About Permian Resources

Permian Resources Corporation NYSE: PR is an independent oil and natural gas company focused on the acquisition, development and production of hydrocarbon resources in the Permian Basin. Its operations are concentrated in the Delaware and Midland basins of West Texas and southeastern New Mexico, where it develops primarily unconventional oil and natural gas properties.

The company's production includes crude oil, natural gas and natural gas liquids. Permian Resources operates a portfolio of acreage and drilling locations and uses horizontal drilling and hydraulic fracturing technologies to develop its resources.

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