Permian Resources Corporation (NYSE:PR) Stock Has Consensus Price Target of $26.61

Key Points

• Analysts are broadly bullish: 22 brokerages give Permian Resources a consensus “Buy” rating, with an average 12-month price target of $26.61.
• Quarterly results topped expectations: The company reported earnings of $0.69 per share and revenue of $1.96 billion, beating estimates; revenue rose 48.1% year over year.
• Shareholder payout: Permian Resources declared a quarterly dividend of $0.16 per share, equivalent to $0.64 annually and a 3.0% yield at the article’s cited price.

Permian Resources Corporation (NYSE:PR - Get Free Report) has been assigned an average rating of "Buy" from the twenty-two brokerages that are covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and five have issued a strong buy rating on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $26.61.

A number of equities research analysts have recently issued reports on PR shares. Raymond James Financial reiterated a "strong-buy" rating and set a $34.00 price objective on shares of Permian Resources in a research note on Monday, November 2nd. Citigroup raised their target price on shares of Permian Resources from $24.00 to $28.00 and gave the company a "buy" rating in a research note on Monday, October 12th. Mizuho upgraded shares of Permian Resources to a "strong-buy" rating in a report on Friday, July 31st. Wells Fargo & Company dropped their price target on shares of Permian Resources from $28.00 to $27.00 and set an "overweight" rating on the stock in a research report on Friday. Finally, Morgan Stanley upped their price target on shares of Permian Resources from $25.00 to $27.00 and gave the stock an "overweight" rating in a research report on Thursday, October 15th.

Insider Activity

In other news, EVP Robert Shannon sold 5,104 shares of the company's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $23.75, for a total value of $121,220.00. Following the sale, the executive vice president directly owned 1,346,698 shares of the company's stock, valued at approximately $31,984,077.50. This represents a 0.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Guy Oliphint sold 5,103 shares of the firm's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $23.75, for a total transaction of $121,196.25. Following the completion of the sale, the executive vice president owned 537,400 shares of the company's stock, valued at $12,763,250. This trade represents a 0.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 15,699 shares of company stock valued at $372,851. 5.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP increased its stake in shares of Permian Resources by 3.9% in the 2nd quarter. Wellington Management Group LLP now owns 20,156,113 shares of the company's stock valued at $371,074,000 after purchasing an additional 763,059 shares during the last quarter. Jennison Associates LLC raised its holdings in shares of Permian Resources by 63.1% during the 1st quarter. Jennison Associates LLC now owns 6,230,034 shares of the company's stock worth $132,824,000 after buying an additional 2,411,292 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Permian Resources during the 1st quarter worth $121,041,000. First Trust Advisors LP lifted its position in shares of Permian Resources by 66.6% during the 1st quarter. First Trust Advisors LP now owns 5,564,528 shares of the company's stock worth $118,636,000 after buying an additional 2,224,560 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its position in shares of Permian Resources by 1.8% during the 1st quarter. Principal Financial Group Inc. now owns 4,733,183 shares of the company's stock worth $100,911,000 after buying an additional 85,509 shares during the last quarter. 91.84% of the stock is currently owned by institutional investors.

Permian Resources News Roundup

Here are the key news stories impacting Permian Resources this week:

• Positive Sentiment: Q3 results beat estimates: Permian Resources reported adjusted earnings of $0.69 per share versus the roughly $0.61 consensus and revenue of $1.96 billion versus $1.78 billion expected. Revenue rose 48.1% year over year. Zacks Q3 earnings report
• Positive Sentiment: Higher production and cash-flow outlook: Q3 total production averaged 457,500 barrels of oil equivalent per day, up 22% sequentially. A separate report highlighted a $300 million free-cash-flow outlook upgrade, which may support confidence in the company’s ability to fund operations and shareholder returns. Q3 results and guidance Free-cash-flow outlook report
• Positive Sentiment: Quarterly dividend declared: The company announced a $0.16-per-share dividend, equivalent to $0.64 annualized, with payment scheduled for December 31. Permian Resources dividend information
• Neutral Sentiment: Acquisition expands the business but requires significant capital: Permian Resources acquired Ridge Runner Resources II for $1.2 billion. The deal may add assets and production, but its ultimate effect will depend on execution and returns. Acquisition report
• Negative Sentiment: Wells Fargo trimmed its target: The bank lowered its price target from $28 to $27, a modest reduction in its valuation view, but retained an Overweight rating and still indicated potential upside. Wells Fargo price-target update
• Negative Sentiment: Costs merit attention: A Q3 recap flagged record costs, which could weigh on margins if they persist, despite the reported free-cash-flow outlook improvement. Q3 cost and cash-flow report

Permian Resources Price Performance

NYSE:PR opened at $21.68 on Monday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.50 and a current ratio of 0.50. The stock's 50-day simple moving average is $23.36 and its 200 day simple moving average is $20.53. The company has a market cap of $18.15 billion, a P/E ratio of 11.29 and a beta of 0.61. Permian Resources has a 52-week low of $12.75 and a 52-week high of $26.07.

Permian Resources (NYSE:PR - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $0.69 EPS for the quarter, beating the consensus estimate of $0.61 by $0.08. The firm had revenue of $1.96 billion during the quarter, compared to analysts' expectations of $1.78 billion. Permian Resources had a return on equity of 15.56% and a net margin of 25.04%. The business's quarterly revenue was up 48.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.08 earnings per share. As a group, sell-side analysts forecast that Permian Resources will post 2.47 EPS for the current fiscal year.

Permian Resources Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Thursday, December 17th will be paid a dividend of $0.16 per share. The ex-dividend date is Thursday, December 17th. This represents a $0.64 annualized dividend and a dividend yield of 3.0%. Permian Resources's payout ratio is currently 33.33%.

About Permian Resources

Permian Resources Corporation is an independent oil and natural gas company focused on the exploration, development and production of oil, natural gas and natural gas liquids. Its operations are concentrated in the Delaware Basin, part of the Permian Basin in West Texas and southeastern New Mexico.

The company develops its acreage through drilling and related production activities, with a focus on operating and expanding its position in the Delaware Basin. Its production is sold into energy markets and used across a range of industrial and consumer applications.

Permian Resources was formed in 2022 through the combination of Centennial Resource Development and Colgate Energy.

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