Diversified Energy Company PLC (NYSE:DEC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Diversified Energy received a consensus “Moderate Buy” rating from 10 analysts, including seven buy ratings and three holds, with an average 12-month price target of $22.50.
• The stock opened at $13.88, while the company’s latest quarterly results missed expectations: adjusted earnings were a $0.29-per-share loss versus the $0.20 consensus estimate, and revenue came in below forecasts.
• Diversified Energy declared a quarterly dividend of $0.29 per share, implying annualized dividends of $1.16 and an 8.4% yield; institutional investors own 26.51% of the company.

Diversified Energy Company PLC (NYSE:DEC - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the ten analysts that are presently covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $22.50.

DEC has been the topic of a number of recent analyst reports. Jefferies Financial Group upgraded Diversified Energy to a "hold" rating in a research note on Friday, July 10th. Weiss Ratings raised shares of Diversified Energy from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 18th. Citigroup cut their price target on shares of Diversified Energy from $19.00 to $16.00 and set a "buy" rating on the stock in a report on Tuesday, July 21st. Truist Financial raised their price target on shares of Diversified Energy from $17.00 to $20.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Finally, Zacks Research lowered shares of Diversified Energy from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 7th.

Diversified Energy Price Performance

DEC stock opened at $13.88 on Friday. Diversified Energy has a 12 month low of $12.33 and a 12 month high of $18.90. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 2.96. The company has a 50-day moving average price of $14.16 and a 200 day moving average price of $14.77. The stock has a market cap of $981.93 million, a PE ratio of 4.30 and a beta of -0.35.

Diversified Energy (NYSE:DEC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.29) earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.49). The company had revenue of $442.30 million for the quarter, compared to the consensus estimate of $492.98 million. Equities research analysts anticipate that Diversified Energy will post 2.7 earnings per share for the current year.

Diversified Energy Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Wednesday, December 2nd will be paid a $0.29 dividend. The ex-dividend date of this dividend is Wednesday, December 2nd. This represents a $1.16 annualized dividend and a yield of 8.4%. Diversified Energy's dividend payout ratio is 35.91%.

Institutional Investors Weigh In On Diversified Energy

Institutional investors and hedge funds have recently bought and sold shares of the company. Tidal Investments LLC purchased a new stake in shares of Diversified Energy in the 2nd quarter worth $988,000. Arizona State Retirement System raised its holdings in shares of Diversified Energy by 6.9% in the second quarter. Arizona State Retirement System now owns 19,483 shares of the company's stock valued at $270,000 after acquiring an additional 1,261 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Diversified Energy in the second quarter valued at about $26,000. Redhawk Wealth Advisors Inc. bought a new stake in shares of Diversified Energy in the 2nd quarter valued at about $259,000. Finally, Versant Capital Management Inc lifted its position in shares of Diversified Energy by 197.0% in the 2nd quarter. Versant Capital Management Inc now owns 4,909 shares of the company's stock worth $68,000 after purchasing an additional 3,256 shares during the period. 26.51% of the stock is owned by institutional investors.

Diversified Energy Company Profile

Diversified Energy Company plc is an energy company focused on the acquisition, operation and management of mature onshore oil and natural gas assets. The company owns and operates producing wells, gathering systems, processing facilities and related infrastructure, primarily in the United States.

Its operations are concentrated in U.S. regions including the Appalachian Basin and central states. Diversified Energy seeks to extend the productive life of acquired assets through operational efficiencies, infrastructure management and well maintenance, while also addressing well plugging, abandonment and environmental obligations associated with its portfolio.

The company was founded in 2001 and was formerly known as Diversified Gas & Oil plc before adopting the Diversified Energy Company name.

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