ConocoPhillips (NYSE:COP) Reaches New 1-Year High on Analyst Upgrade

Key Points

• ConocoPhillips reached a new 52-week high after Morgan Stanley raised its price target from $147 to $151 and reiterated an overweight rating. Shares traded as high as $135.87, while analysts’ consensus rating remained “Moderate Buy” with an average target of $139.21.
• The company reported strong second-quarter results, with adjusted EPS of $3.24 surpassing the $2.90 estimate and revenue of $19.52 billion. It generated $7.2 billion in operating cash flow, doubled share repurchases and reaffirmed its outlook.
• Despite positive momentum from higher oil prices, LNG growth prospects and analyst support, investors face valuation and execution risks, along with reported insider selling. ConocoPhillips also declared a quarterly dividend of $0.84 per share, equivalent to a 2.5% annualized yield.

ConocoPhillips (NYSE:COP - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday after Morgan Stanley raised their price target on the stock from $147.00 to $151.00. Morgan Stanley currently has an overweight rating on the stock. ConocoPhillips traded as high as $135.87 and last traded at $135.54, with a volume of 2833737 shares changing hands. The stock had previously closed at $130.58.

Other research analysts have also issued research reports about the stock. Truist Financial raised their target price on shares of ConocoPhillips from $115.00 to $130.00 and gave the company a "hold" rating in a research note on Monday, August 10th. Susquehanna raised their price objective on shares of ConocoPhillips from $155.00 to $161.00 and gave the company a "positive" rating in a research note on Tuesday, August 11th. UBS Group lifted their target price on shares of ConocoPhillips from $143.00 to $153.00 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Roth Capital upgraded shares of ConocoPhillips from a "neutral" rating to a "buy" rating and upped their target price for the company from $124.00 to $130.00 in a research report on Monday, June 22nd. Finally, Wall Street Zen raised ConocoPhillips from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $139.21.

ConocoPhillips News Summary

Here are the key news stories impacting ConocoPhillips this week:

• Positive Sentiment: Higher oil prices support earnings expectations: A broader rally in crude and energy shares improved the near-term outlook for ConocoPhillips’ production and cash flow. ConocoPhillips gains as higher oil prices add to post-earnings momentum
• Positive Sentiment: Strong second-quarter performance: ConocoPhillips reported adjusted earnings of $3.24 per share, above the $2.90 consensus estimate, while revenue reached $19.52 billion. Cash from operations totaled $7.2 billion, and the company doubled share repurchases during the quarter.
• Positive Sentiment: Shareholder returns and guidance reaffirmed: The company declared a third-quarter ordinary dividend of $0.84 per share and maintained its full-year outlook, signaling confidence in operating performance and cash generation.
• Positive Sentiment: Analyst support strengthened: Argus raised its price target to $153 from $136 and maintained a buy rating. Recent analyst targets have generally been constructive, with a reported median target of $146.
• Positive Sentiment: Growth and asset catalysts: Coverage highlighted ConocoPhillips’ earnings momentum, low-cost resource inventory, LNG growth potential and potential cash-flow benefits from its portfolio, supporting the long-term investment case. Is ConocoPhillips Stock a Buy as Growth Meets a Premium Valuation?
• Neutral Sentiment: Norway asset transaction: Aker BP agreed to acquire Apache and ConocoPhillips interests offshore Norway. The deal may streamline the portfolio, but its immediate effect on COP’s valuation was unclear. Aker BP to buy Apache, ConocoPhillips stakes offshore Norway
• Negative Sentiment: Valuation and execution risks: Analysts noted that COP’s premium valuation leaves less room for disappointment, while LNG growth and other strategic initiatives depend on successful execution. Is ConocoPhillips Stock a Buy as Growth Meets a Premium Valuation?
• Negative Sentiment: Insider selling: Reported insider activity showed 12 sales and no purchases over the past six months, including significant sales by senior executives. This may temper sentiment, although insider sales can reflect compensation or diversification rather than a fundamental outlook.

Institutional Trading of ConocoPhillips

Hedge funds have recently added to or reduced their stakes in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of ConocoPhillips during the 4th quarter valued at about $25,000. Strive Asset Management LLC bought a new stake in ConocoPhillips during the 3rd quarter worth approximately $28,000. Frazier Financial Advisors LLC raised its holdings in ConocoPhillips by 151.0% during the 1st quarter. Frazier Financial Advisors LLC now owns 241 shares of the energy producer's stock worth $32,000 after buying an additional 145 shares during the period. Allied Private Wealth LLC acquired a new stake in ConocoPhillips during the 2nd quarter worth approximately $32,000. Finally, BNP Paribas bought a new position in ConocoPhillips in the second quarter valued at approximately $33,000. Institutional investors and hedge funds own 82.36% of the company's stock.

ConocoPhillips Stock Performance

The stock has a market cap of $162.70 billion, a P/E ratio of 17.91, a price-to-earnings-growth ratio of 1.43 and a beta of 0.11. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.54 and a quick ratio of 1.39. The stock's 50 day simple moving average is $114.53 and its two-hundred day simple moving average is $117.32.

ConocoPhillips (NYSE:COP - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The energy producer reported $3.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.90 by $0.34. The company had revenue of $19.52 billion during the quarter, compared to the consensus estimate of $18.79 billion. ConocoPhillips had a net margin of 14.22% and a return on equity of 14.72%. The firm's revenue was up 32.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.42 earnings per share. As a group, research analysts forecast that ConocoPhillips will post 10.05 EPS for the current year.

ConocoPhillips Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th will be issued a $0.84 dividend. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Monday, August 17th. ConocoPhillips's payout ratio is 44.44%.

About ConocoPhillips

ConocoPhillips NYSE: COP is a Houston-based international energy company focused on exploration and production of oil and natural gas. Formed in 2002 through the merger of Conoco Inc and Phillips Petroleum Company, the firm operates as an independent upstream company that explores for, develops and produces crude oil, natural gas and natural gas liquids across a portfolio of global assets.

The company's activities span conventional and unconventional resources and include onshore and offshore operations in multiple regions around the world.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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