Permian Resources (NYSE:PR) Reaches New 1-Year High - Should You Buy?

Key Points

• Permian Resources reached a new 52-week high, trading as high as $24.81. Analysts remain bullish, with an average “Buy” rating and a consensus price target of $25.72, while several firms set targets of $27–$29.
• The company reported stronger-than-expected quarterly results, with EPS of $0.69 versus the $0.59 estimate and revenue of $1.86 billion, up 55.1% year over year.
• Permian Resources pays a quarterly dividend of $0.16, equivalent to a 2.6% annualized yield. Institutional investors own 91.84% of the stock, while recent insider sales were primarily attributed to tax withholding on vested equity awards.

Shares of Permian Resources Corporation (NYSE:PR - Get Free Report) hit a new 52-week high during mid-day trading on Monday. The company traded as high as $24.81 and last traded at $24.7160, with a volume of 809,037 shares. The stock had previously closed at $24.59.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Truist Financial increased their price target on shares of Permian Resources from $24.00 to $28.00 and gave the company a "buy" rating in a report on Monday, October 12th. Seaport Research Partners initiated coverage on shares of Permian Resources in a report on Thursday, September 3rd. They set a "buy" rating and a $29.00 price objective for the company. Roth Capital set a $23.00 target price on shares of Permian Resources and gave the stock a "buy" rating in a report on Monday, June 22nd. Scotiabank began coverage on shares of Permian Resources in a research report on Wednesday. They issued a "sector outperform" rating and a $29.00 price objective for the company. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $27.00 target price on shares of Permian Resources in a report on Thursday, September 24th. Five investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $25.72.

Permian Resources Trading Up 0.3%

The stock has a market cap of $20.66 billion, a price-to-earnings ratio of 16.33 and a beta of 0.66. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.25. The business's 50 day simple moving average is $22.79 and its 200 day simple moving average is $20.98.

Permian Resources (NYSE:PR - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.69 EPS for the quarter, beating analysts' consensus estimates of $0.59 by $0.10. The company had revenue of $1.86 billion during the quarter, compared to the consensus estimate of $1.66 billion. Permian Resources had a net margin of 21.52% and a return on equity of 13.47%. The company's quarterly revenue was up 55.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.28 EPS. On average, research analysts expect that Permian Resources Corporation will post 2.37 EPS for the current fiscal year.

Permian Resources Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were paid a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 2.6%. The ex-dividend date was Wednesday, September 16th. Permian Resources's dividend payout ratio (DPR) is 42.38%.

Insider Buying and Selling

In other Permian Resources news, EVP Robert Shannon sold 5,104 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $23.75, for a total value of $121,220.00. Following the sale, the executive vice president owned 1,346,698 shares in the company, valued at $31,984,077.50. This represents a 0.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP John Bell sold 5,492 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $23.75, for a total value of $130,435.00. Following the completion of the sale, the executive vice president directly owned 1,561,680 shares of the company's stock, valued at approximately $37,089,900. The trade was a 0.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 15,699 shares of company stock worth $372,851. Company insiders own 5.00% of the company's stock.

Institutional Inflows and Outflows

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

About Permian Resources

Permian Resources Corporation NYSE: PR is an independent oil and natural gas company focused on the acquisition, development, and production of hydrocarbons in the Permian Basin. Its operations are concentrated in the Delaware Basin, a prolific oil-producing region spanning southeastern New Mexico and West Texas.

The company's production portfolio includes crude oil, natural gas, and natural gas liquids. Permian Resources develops its acreage through horizontal drilling and multi-well development programs, with activities that include drilling, completion, production, and infrastructure management.

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