Viper Energy (NASDAQ:VNOM) Cut to Sell at Wall Street Zen

Key Points

• Viper Energy (NASDAQ:VNOM) has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting concerns about its stock performance.
• Mizuho has lowered its price target for Viper Energy from $55 to $51, while other firms like Barclays and Wells Fargo have also adjusted their price targets amid fluctuating oil prices.
• Despite recent challenges, Viper Energy reported strong quarterly earnings, beating expectations with $0.41 EPS and a year-over-year revenue increase of 37.1%.

Viper Energy (NASDAQ:VNOM - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Sunday.

Other analysts also recently issued reports about the stock. Mizuho cut their price target on shares of Viper Energy from $55.00 to $51.00 and set an "outperform" rating on the stock in a research report on Monday, September 15th. Barclays decreased their price target on shares of Viper Energy from $60.00 to $57.00 and set an "overweight" rating for the company in a research note on Tuesday, October 7th. Wells Fargo & Company raised their target price on shares of Viper Energy from $48.00 to $49.00 and gave the company an "overweight" rating in a research note on Thursday, October 16th. Raymond James Financial reissued an "outperform" rating and issued a $57.00 target price (down from $60.00) on shares of Viper Energy in a research note on Tuesday, July 29th. Finally, Jefferies Financial Group began coverage on shares of Viper Energy in a research report on Thursday. They set a "hold" rating and a $38.00 price objective for the company. Fifteen research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Viper Energy currently has an average rating of "Moderate Buy" and an average price target of $54.07.

Viper Energy Price Performance

Shares of Viper Energy stock opened at $37.26 on Friday. The stock has a market capitalization of $10.75 billion, a price-to-earnings ratio of 10.77, a PEG ratio of 16.48 and a beta of 0.92. Viper Energy has a 1-year low of $34.71 and a 1-year high of $56.76. The firm has a fifty day simple moving average of $38.16 and a 200-day simple moving average of $39.01. The company has a current ratio of 6.15, a quick ratio of 6.15 and a debt-to-equity ratio of 0.13.

Viper Energy (NASDAQ:VNOM - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The oil and gas producer reported $0.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.07. Viper Energy had a net margin of 37.84% and a return on equity of 3.92%. The company had revenue of $297.00 million during the quarter, compared to analysts' expectations of $285.35 million. During the same quarter in the prior year, the company posted $0.62 EPS. The business's revenue was up 37.1% on a year-over-year basis. On average, sell-side analysts expect that Viper Energy will post 2.02 earnings per share for the current year.

Hedge Funds Weigh In On Viper Energy

Institutional investors have recently modified their holdings of the company. GAMMA Investing LLC grew its stake in Viper Energy by 48.2% in the 1st quarter. GAMMA Investing LLC now owns 2,017 shares of the oil and gas producer's stock valued at $91,000 after purchasing an additional 656 shares during the period. State of Alaska Department of Revenue boosted its position in shares of Viper Energy by 31.0% during the 1st quarter. State of Alaska Department of Revenue now owns 15,385 shares of the oil and gas producer's stock valued at $694,000 after acquiring an additional 3,640 shares during the last quarter. Golden State Wealth Management LLC boosted its position in shares of Viper Energy by 100.0% during the 1st quarter. Golden State Wealth Management LLC now owns 1,000 shares of the oil and gas producer's stock valued at $45,000 after acquiring an additional 500 shares during the last quarter. Highland Capital Management LLC purchased a new position in shares of Viper Energy during the 1st quarter valued at about $290,000. Finally, Amalgamated Bank raised its holdings in shares of Viper Energy by 21.3% during the 1st quarter. Amalgamated Bank now owns 59,901 shares of the oil and gas producer's stock valued at $2,705,000 after buying an additional 10,529 shares in the last quarter. 87.72% of the stock is owned by institutional investors and hedge funds.

About Viper Energy

Viper Energy, Inc engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

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