Cabot Oil & Gas Corporation (COG): Looking For The Next Breakout?

Analysts at Jefferies upped their rating on shares of Cabot Oil & Gas Corporation (NYSE:COG) from Hold to Buy in their opinion released on January 07. Citigroup analysts bumped their recommendation on COG stock from Neutral to Buy in a separate flash note to investors on December 21.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Cabot Oil & Gas Corporation (NYSE:COG)’s prospects. The earliest insider trade took place on 12/28/2018. Delaney Peter B gathered a total of 0.05 thousand shares of company at average share price of $23. The total for the purchase was set at $1.24 thousand. After this transaction, the Director account balance stood at 3.26 thousand shares. The stock grew 5.13 percent since that insider purchase. On 05/29/2018, Kelley Robert, Director, purchased 50 thousand shares at a price per share of $22.25. This added 1.11 million shares to the insider’s fortune and the stock saw a 8.67 percent rally in value since the news became public. This transaction left 681.72 thousand shares in the Director account. On 05/17/2018, Vice Pres & Controller Roemer Todd M performed a sale transaction worth $23.55 thousand. This sale at $23.55 each has eliminated 1 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 2.68 percent increase since the transaction was reported. The insider now is left with 62.66 thousand shares remaining in the account. Dinges Dan O, who performs the Chairman, President & CEO job, sold 66.61 thousand shares for $1.86 million. The disposal occurred on 11/02/2017 was priced at $27.92 per share. The share price plunged -13.4 percent since the reporting date. Dinges Dan O now left with a stake of 3.63 million COG stock worth $87.71 million after the insider selling.

Cabot Oil & Gas Corporation (COG) is expected to jump by 14.81 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $35-month high price target. This represents a whopping 44.75 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $27.5, which represents a return potential of 13.73 percent when compared to the closing price of the stock of $24.18 on Friday, January 11. The lowest price target for the stock is $18 — slightly more than -25.56 percent from COG’s current share price.

The shares are currently floating around the first support level of $23.94. Below this, the next support is placed in the zone of $23.7. Till the time, the COG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.22 on daily chart, which may remain a cause for concern. If the price breaks below $23.7 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $24.35 mark may result into a pull-back move towards $24.52 level.

COG shares accumulated 0.06 points or 0.25 percent on Friday to $24.18 with a light trade volume of 4.698 million shares. After opening the session at $24, the shares went as high as $24.28 and as low as $23.87, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $10.4 billion and now has 430.11 million shares outstanding. Cabot Oil & Gas Corporation (COG) stock has lost -4.01 percent of market value in 21 trading days.

COG stock has a trailing 3-year beta of 0.47, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0 a share in the trailing twelve months. The stock’s value has surged 8.19 percent year to date (YTD) against a decline of -13.52 percent in 12 month’s time. The company’s shares still trade -16.48 percent away from its 1-year high of $28.95 and 15.45 percent up from 52-week low of $20.94. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Cabot Oil & Gas Corporation (COG) are trading at a P/E ratio of 10782.22 times earnings reported for the past 12 months. The industry COG operates in has an average P/E of 16.71. Its P/E ratio went as low as 58.52X and as high as 118.36 over the 5-year span. Further, it is sporting a 5.55 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.8. 60.7 percent is the gross profit margin for Cabot Oil & Gas Corporation and operating margin sits at -0.4 percent. Along with this, the net profit margin is 12.7 percent.