EOG Resources (NYSE:EOG) Sets New 1-Year High - Should You Buy?

Key Points

• EOG Resources reached a new 52-week high of $159, supported by a higher BMO price target of $175 and favorable Zacks rankings citing growth, momentum and Permian Basin efficiency.
• The company reported strong quarterly results, with EPS of $5.07 beating estimates and revenue rising 57.4% year over year to $8.62 billion. It also declared a quarterly dividend of $1.02, equivalent to a 2.6% annual yield.
• Despite positive operating momentum and substantial institutional ownership, the stock’s consensus rating remains “Hold”, with a $160.56 average target offering limited upside; insiders have also sold more than $7.8 million in shares over the past three months.

EOG Resources, Inc. (NYSE:EOG - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $159.00 and last traded at $157.7310, with a volume of 2,354,862 shares traded. The stock had previously closed at $158.01.

Key Stories Impacting EOG Resources

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

• Positive Sentiment: BMO raises price target: BMO Capital increased its target for EOG to $175 from $170, signaling continued confidence in the company’s outlook and potential upside. BMO Capital adjusts price target on EOG Resources
• Positive Sentiment: Strong-buy rankings: Zacks added EOG to its Rank #1, or “Strong Buy,” lists for overall stocks, growth, value and momentum. These rankings cite above-average financial growth and favorable momentum indicators. Best Momentum Stock to Buy
• Positive Sentiment: Higher crude prices and Permian efficiency: Zacks highlighted EOG among oil producers positioned to benefit from rising crude prices, advanced drilling technology, lower development costs and disciplined capital spending in the Permian Basin. Buy Giant Oil Explorers to Tap Rising Crude Prices
• Neutral Sentiment: Near a 52-week high: EOG’s strong run has prompted analysis of whether investors should continue holding or take profits. The stock’s momentum is constructive, but its elevated level may increase sensitivity to profit-taking. EOG Reaches a 52-Week High
• Negative Sentiment: Limited consensus upside: A reported consensus price target of $160.56 is only modestly above the recent trading level, potentially encouraging some investors to lock in gains while awaiting a fresh catalyst. EOG Consensus Target Price

Analyst Upgrades and Downgrades

A number of research analysts recently commented on EOG shares. Mizuho set a $165.00 target price on EOG Resources in a research note on Thursday. Wall Street Zen raised EOG Resources from a "hold" rating to a "buy" rating in a research note on Saturday, September 26th. Freedom Capital lowered EOG Resources from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 5th. Weiss Ratings upgraded EOG Resources from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, September 8th. Finally, Capital One Financial lowered EOG Resources from an "overweight" rating to an "equal weight" rating and set a $153.00 price objective on the stock. in a research report on Wednesday, August 26th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eighteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $160.56.

EOG Resources Trading Down 0.2%

The stock has a market capitalization of $82.73 billion, a P/E ratio of 11.74, a price-to-earnings-growth ratio of 0.57 and a beta of 0.36. The company has a current ratio of 1.85, a quick ratio of 1.68 and a debt-to-equity ratio of 0.25. The stock's fifty day moving average price is $146.30 and its two-hundred day moving average price is $140.31.

EOG Resources (NYSE:EOG - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The energy exploration company reported $5.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.97 by $0.10. EOG Resources had a net margin of 25.44% and a return on equity of 23.44%. The company had revenue of $8.62 billion during the quarter, compared to analysts' expectations of $8.04 billion. During the same quarter in the prior year, the company earned $2.32 EPS. The firm's revenue was up 57.4% on a year-over-year basis. Equities research analysts forecast that EOG Resources, Inc. will post 17.48 EPS for the current year.

EOG Resources Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 16th will be paid a $1.02 dividend. The ex-dividend date of this dividend is Friday, October 16th. This represents a $4.08 annualized dividend and a yield of 2.6%. EOG Resources's payout ratio is currently 31.75%.

Insiders Place Their Bets

In other EOG Resources news, EVP Michael Donaldson sold 7,336 shares of the company's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $148.00, for a total transaction of $1,085,728.00. Following the completion of the sale, the executive vice president directly owned 100,558 shares in the company, valued at $14,882,584. This represents a 6.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Ezra Yacob sold 35,942 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $152.10, for a total transaction of $5,466,778.20. Following the sale, the chief executive officer owned 242,451 shares of the company's stock, valued at approximately $36,876,797.10. The trade was a 12.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 52,317 shares of company stock valued at $7,823,480 over the last three months. Insiders own 0.14% of the company's stock.

Institutional Investors Weigh In On EOG Resources

A number of hedge funds and other institutional investors have recently modified their holdings of EOG. BlackRock Inc. purchased a new position in shares of EOG Resources in the second quarter valued at about $5,905,587,000. Dimensional Fund Advisors LP boosted its holdings in shares of EOG Resources by 0.9% during the first quarter. Dimensional Fund Advisors LP now owns 5,865,073 shares of the energy exploration company's stock worth $848,228,000 after purchasing an additional 54,091 shares during the period. Bank of New York Mellon Corp boosted its holdings in shares of EOG Resources by 5.5% during the first quarter. Bank of New York Mellon Corp now owns 4,928,984 shares of the energy exploration company's stock worth $712,583,000 after purchasing an additional 259,015 shares during the period. Bank of America Corp DE purchased a new stake in shares of EOG Resources during the second quarter worth about $551,321,000. Finally, First Trust Advisors LP boosted its holdings in shares of EOG Resources by 15.7% during the first quarter. First Trust Advisors LP now owns 3,446,002 shares of the energy exploration company's stock worth $498,189,000 after purchasing an additional 468,090 shares during the period. Institutional investors own 89.91% of the company's stock.

EOG Resources Company Profile

EOG Resources, Inc is an independent exploration and production company engaged in finding, developing, producing and marketing crude oil, natural gas liquids and natural gas. Its operations focus on large, high-quality onshore and international assets, supported by technical expertise in horizontal drilling and hydraulic fracturing.

The company's principal U.S. activities are concentrated in major shale and onshore plays, including the Delaware Basin, Eagle Ford and other producing regions in Texas and the Rocky Mountains.

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