EQT Corporation (NYSE:EQT) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Wall Street maintains a moderately bullish view: Twenty-seven analysts rate EQT Corporation a “Moderate Buy,” including 18 buys and two strong buys, with an average 12-month price target of $67.64.
• Institutional ownership is substantial: Major investors including BlackRock, State Street and Wellington increased or initiated positions during the second quarter, with institutions and hedge funds collectively owning 90.81% of EQT’s shares.
• Dividend growth faces cash-flow risks: EQT raised its quarterly dividend to $0.17 per share, but its latest earnings and revenue missed estimates, while volatile natural-gas prices could limit future dividend growth.

Shares of EQT Corporation (NYSE:EQT - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-seven ratings firms that are covering the firm, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a hold recommendation, eighteen have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $67.64.

EQT has been the subject of a number of recent research reports. Morgan Stanley cut their target price on shares of EQT from $68.00 to $67.00 and set an "overweight" rating for the company in a research note on Wednesday, August 19th. Freedom Capital upgraded shares of EQT to a "strong-buy" rating in a report on Tuesday, June 30th. UBS Group reduced their target price on shares of EQT from $77.00 to $76.00 and set a "buy" rating on the stock in a report on Thursday. Stifel Nicolaus assumed coverage on shares of EQT in a research note on Wednesday, September 9th. They set a "buy" rating and a $66.00 price target on the stock. Finally, Mizuho lowered their price target on shares of EQT from $72.00 to $68.00 and set an "outperform" rating for the company in a report on Thursday, October 15th.

Insider Activity

In related news, CEO Toby Rice sold 175,328 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $55.03, for a total transaction of $9,648,299.84. Following the sale, the chief executive officer owned 2,157,865 shares in the company, valued at approximately $118,747,310.95. This trade represents a 7.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.72% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of EQT during the 2nd quarter valued at $3,204,125,000. State Street Corp increased its holdings in shares of EQT by 3.7% during the 2nd quarter. State Street Corp now owns 39,679,249 shares of the oil and gas producer's stock worth $2,109,746,000 after buying an additional 1,398,316 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of EQT by 41.4% during the 2nd quarter. Wellington Management Group LLP now owns 22,565,479 shares of the oil and gas producer's stock worth $1,199,807,000 after buying an additional 6,603,286 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of EQT in the 2nd quarter worth $512,148,000. Finally, Bank of America Corp DE boosted its holdings in EQT by 7.2% in the second quarter. Bank of America Corp DE now owns 4,240,709 shares of the oil and gas producer's stock valued at $225,478,000 after acquiring an additional 284,244 shares during the last quarter. 90.81% of the stock is currently owned by institutional investors and hedge funds.

More EQT News

Here are the key news stories impacting EQT this week:

• Positive Sentiment: Dividend increase supports income appeal: EQT recently raised its dividend again, which may bolster investor confidence and shareholder returns. However, the sustainability of future increases depends on natural-gas prices and cash generation. EQT’s Dividend Faces a Big Test
• Neutral Sentiment: Shares have rebounded from key support: The stock recently bounced from the familiar $49 level, but the rally is approaching historically bearish resistance. A failure to break through that resistance could lead to renewed volatility. EQT Stock Faces Historically Bearish Resistance
• Neutral Sentiment: Cleanaway transaction appears unrelated to EQT Corporation: Articles report that EQT Infrastructure agreed to acquire Australian waste-management company Cleanaway in a deal valued at approximately $6.5 billion, with reports also citing substantial acquisition financing. EQT Infrastructure and EQT Group are separate from the publicly traded U.S. natural-gas producer EQT Corporation, so the transaction should have limited direct effect on EQT stock. EQT Infrastructure to Acquire Cleanaway
• Negative Sentiment: Cash-flow risk remains a concern: Volatile natural-gas prices and the company’s prioritization of buybacks could make it harder to sustain additional dividend growth if operating cash flow weakens. This is a potential overhang for income-focused investors. EQT’s Dividend Faces a Big Test

EQT Stock Performance

NYSE EQT opened at $54.50 on Tuesday. EQT has a fifty-two week low of $47.94 and a fifty-two week high of $68.24. The stock has a market cap of $34.09 billion, a price-to-earnings ratio of 12.65 and a beta of 0.66. The business has a fifty day moving average of $52.99 and a 200-day moving average of $54.04. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 0.19.

EQT (NYSE:EQT - Get Free Report) last issued its quarterly earnings data on Tuesday, July 21st. The oil and gas producer reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.02). The company had revenue of $1.68 billion during the quarter, compared to analysts' expectations of $1.76 billion. EQT had a net margin of 28.44% and a return on equity of 9.31%. The firm's revenue was down 29.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.45 earnings per share. As a group, analysts predict that EQT will post 3.86 earnings per share for the current fiscal year.

EQT Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 4th will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Wednesday, November 4th. This is a positive change from EQT's previous quarterly dividend of $0.1650. This represents a $0.68 annualized dividend and a dividend yield of 1.2%. EQT's payout ratio is currently 15.31%.

About EQT

EQT Corporation is a natural gas exploration and production company headquartered in Pittsburgh, Pennsylvania. The company develops and operates unconventional oil and gas properties, with a primary focus on natural gas and natural gas liquids produced from shale formations.

EQT's operations are concentrated in the Appalachian Basin, particularly the Marcellus and Utica shale formations in Pennsylvania, West Virginia and Ohio. Its activities include drilling, completion, production and management of natural gas wells, along with related gathering and infrastructure operations that support the transportation of its products to market.

The company traces its roots to Equitable Gas, founded in 1878, and has evolved through multiple stages of expansion and restructuring in the U.S.

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