Occidental Petroleum Corporation (NYSE:OXY) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts collectively rate Occidental Petroleum “Hold.” Fourteen of 27 analysts recommend holding the stock, while 13 recommend buying it; the average 12-month price target is $67.17 versus a recent price of $62.80.
• Recent analyst actions have generally been positive, including upgrades from Weiss Ratings and Goldman Sachs and higher price targets from Truist, Morgan Stanley, Susquehanna, and others, although J.P. Morgan and Morgan Stanley maintain cautious Hold or equal-weight views.
• Occidental reported strong quarterly results, with EPS of $2.40 beating estimates of $1.83 and revenue rising 53.4% year over year to $8.06 billion. The company also increased its quarterly dividend to $0.28 per share, equivalent to a 1.8% annual yield.

Occidental Petroleum Corporation (NYSE:OXY - Get Free Report) has been assigned an average recommendation of "Hold" from the twenty-seven analysts that are currently covering the firm, Marketbeat reports. Fourteen investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $67.17.

Several equities analysts have recently issued reports on the company. Weiss Ratings upgraded Occidental Petroleum from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, October 13th. Truist Financial upped their price objective on Occidental Petroleum from $63.00 to $64.00 and gave the company a "hold" rating in a report on Thursday, October 15th. Morgan Stanley raised their target price on Occidental Petroleum from $69.00 to $71.00 and gave the company an "equal weight" rating in a research note on Thursday, October 15th. Susquehanna raised their target price on Occidental Petroleum from $67.00 to $70.00 and gave the company a "positive" rating in a research note on Tuesday, August 11th. Finally, The Goldman Sachs Group raised Occidental Petroleum from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $63.00 to $69.00 in a report on Thursday, October 1st.

Occidental Petroleum Price Performance

NYSE OXY opened at $62.80 on Tuesday. Occidental Petroleum has a 12 month low of $38.80 and a 12 month high of $67.45. The firm has a market capitalization of $62.77 billion, a PE ratio of 9.72, a P/E/G ratio of 0.92 and a beta of 0.24. The company's 50 day simple moving average is $59.49 and its 200 day simple moving average is $57.20. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.41 and a quick ratio of 1.13.

Occidental Petroleum (NYSE:OXY - Get Free Report) last announced its earnings results on Wednesday, August 5th. The oil and gas producer reported $2.40 EPS for the quarter, topping the consensus estimate of $1.83 by $0.57. The firm had revenue of $8.06 billion for the quarter, compared to analysts' expectations of $7.07 billion. Occidental Petroleum had a return on equity of 15.31% and a net margin of 28.36%. The firm's quarterly revenue was up 53.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.39 earnings per share. As a group, equities research analysts forecast that Occidental Petroleum will post 6.56 EPS for the current fiscal year.

Occidental Petroleum Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Thursday, September 10th were given a dividend of $0.28 per share. This is a positive change from Occidental Petroleum's previous quarterly dividend of $0.26. The ex-dividend date was Thursday, September 10th. This represents a $1.12 annualized dividend and a dividend yield of 1.8%. Occidental Petroleum's payout ratio is 17.34%.

Occidental Petroleum News Roundup

Here are the key news stories impacting Occidental Petroleum this week:

• Positive Sentiment: Roth upgraded OXY to Buy, describing the company as one of the better ways to participate in potential upside for oil prices. The upgrade reinforces the bullish view that Occidental’s upstream operations could benefit from stronger crude markets. Occidental Petroleum raised to Buy at Roth as one of better ways to play oil upside
• Positive Sentiment: Stephens raised its price target to $80 from $78 and maintained an Overweight rating, implying substantial potential upside from recent trading levels. The higher target supports the view that analysts see improving fundamentals and favorable valuation. Stephens raises Occidental Petroleum price target
• Positive Sentiment: Repeated Zacks coverage highlights surging earnings estimates for Occidental, a potentially important near-term catalyst because upward estimate revisions often attract momentum-focused investors. Zacks also identifies OXY as a long-term value stock. Surging Earnings Estimates Signal Upside for Occidental Stock
• Positive Sentiment: Occidental is exploring a potential partnership with Algeria’s Sonatrach. Although details remain limited, a deal could create additional international growth or development opportunities. Sonatrach and Oxy explore partnership prospects
• Neutral Sentiment: J.P. Morgan and Morgan Stanley both reiterated Hold ratings, providing a counterweight to the recent upgrades and suggesting some analysts remain cautious about valuation, commodity-price volatility, or Occidental’s balance-sheet risks. J.P. Morgan maintains Hold rating
• Negative Sentiment: Venezuela expects to attract approximately $76 billion in oil investment over five years. If successful, increased Venezuelan production could add global supply and pressure crude prices, indirectly creating a risk for OXY’s oil-sensitive earnings. Venezuela expects major oil investment boost

Hedge Funds Weigh In On Occidental Petroleum

Hedge funds have recently made changes to their positions in the business. Axiom Investment Management LLC bought a new stake in Occidental Petroleum during the first quarter worth approximately $25,000. GKV Capital Management Co. Inc. acquired a new position in Occidental Petroleum in the first quarter worth approximately $26,000. Portus Wealth Advisors LLC bought a new position in shares of Occidental Petroleum in the first quarter valued at $29,000. Hara Capital LLC bought a new position in shares of Occidental Petroleum in the second quarter valued at $25,000. Finally, Ballast Advisors LLC bought a new position in shares of Occidental Petroleum in the first quarter valued at $39,000. Institutional investors and hedge funds own 88.70% of the company's stock.

Occidental Petroleum Company Profile

Occidental Petroleum Corporation is an energy company engaged in oil and natural gas exploration, development and production. Its operations are focused primarily on the United States, including the Permian and DJ basins, as well as selected international regions in the Middle East and North Africa.

The company's OxyChem subsidiary manufactures and markets chlor-alkali chemicals, vinyls and other chemical products used in water treatment, construction, healthcare, packaging and industrial applications.

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