Diversified Energy (NYSE:DEC) Shares Break Below 200 Day Moving Average - What's Next?

Key Points

• Diversified Energy shares fell below their 200-day moving average of $14.41, trading as low as $13.70 and last changing hands near $13.72.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $22.00, despite several target reductions.
• The company reported a quarterly earnings and revenue miss but announced a $0.29-per-share dividend, equivalent to a yield of about 8.5%.

Diversified Energy Company PLC (NYSE:DEC - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $14.41 and traded as low as $13.70. Diversified Energy shares last traded at $13.7170, with a volume of 923,824 shares.

Analysts Set New Price Targets

DEC has been the topic of several recent research reports. Weiss Ratings upgraded shares of Diversified Energy from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 18th. Citigroup lowered their price target on Diversified Energy from $19.00 to $16.00 and set a "buy" rating for the company in a report on Tuesday, July 21st. Mizuho cut their price objective on Diversified Energy from $32.00 to $29.00 and set an "outperform" rating on the stock in a research report on Friday, October 16th. Truist Financial upped their target price on Diversified Energy from $17.00 to $20.00 and gave the stock a "buy" rating in a research report on Wednesday, August 12th. Finally, Zacks Research upgraded Diversified Energy from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 12th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $22.00.

Diversified Energy Price Performance

The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.57 and a current ratio of 0.57. The stock has a market cap of $970.75 million, a price-to-earnings ratio of 4.25 and a beta of -0.28. The business's fifty day simple moving average is $14.42 and its 200 day simple moving average is $14.41.

Diversified Energy (NYSE:DEC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.20 by ($0.49). The firm had revenue of $442.30 million during the quarter, compared to analyst estimates of $492.98 million. Research analysts predict that Diversified Energy Company PLC will post 2.78 EPS for the current fiscal year.

Diversified Energy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Wednesday, December 2nd will be paid a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a yield of 8.5%. The ex-dividend date is Wednesday, December 2nd. Diversified Energy's dividend payout ratio (DPR) is 35.91%.

Institutional Investors Weigh In On Diversified Energy

Several hedge funds and other institutional investors have recently bought and sold shares of DEC. Bank of America Corp DE grew its position in shares of Diversified Energy by 57.8% during the first quarter. Bank of America Corp DE now owns 304,613 shares of the company's stock worth $5,312,000 after buying an additional 111,625 shares in the last quarter. Artemis Investment Management LLP increased its stake in shares of Diversified Energy by 8.3% in the third quarter. Artemis Investment Management LLP now owns 6,148,058 shares of the company's stock worth $82,383,000 after buying an additional 470,823 shares during the last quarter. First Trust Advisors LP bought a new stake in shares of Diversified Energy in the first quarter worth $10,546,000. Walleye Capital LLC increased its stake in shares of Diversified Energy by 275.1% in the first quarter. Walleye Capital LLC now owns 230,694 shares of the company's stock worth $4,023,000 after buying an additional 169,198 shares during the last quarter. Finally, California State Teachers Retirement System raised its holdings in Diversified Energy by 1,504.4% in the first quarter. California State Teachers Retirement System now owns 61,385 shares of the company's stock valued at $1,071,000 after acquiring an additional 57,559 shares in the last quarter. 26.51% of the stock is currently owned by hedge funds and other institutional investors.

About Diversified Energy

Diversified Energy Company plc is an independent energy company focused on acquiring, operating and managing mature onshore oil and natural gas assets in the United States. Its portfolio includes producing wells, gathering systems and related infrastructure, with an emphasis on extending the productive life of existing assets through operational improvements and disciplined asset management.

The company's operations are concentrated in several U.S. regions, including the Appalachian, Central and Rocky Mountain areas.

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