Quashing Thoughts Of An EOG Resources, Inc. (EOG) Exodus

On 08 February, shares of EOG Resources, Inc. (NYSE:EOG) closed lower after a volatile session. The shares dropped -0.49 points or -0.53 percent at $92.5 with a light trade volume of 3.073 million shares. After opening the session at $92.67, the shares went as high as $93.27 and as low as $89.94, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $53.9 billion and now has 582.98 million shares outstanding. EOG Resources, Inc. (EOG) stock has lost -6.74 percent of market value in 21 trading days.

EOG stock has a trailing 3-year beta of 1.3, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.75 a share in the trailing twelve months. The stock’s value has surged 6.07 percent year to date (YTD) against a decline of -12.55 percent in 12 month’s time. The company’s shares still trade -30.73 percent away from its 1-year high of $133.53 and 12.75 percent up from 52-week low of $82.04. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

EOG Resources, Inc. (EOG) will probably climb 34.97 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $155 price as 12-month high target. This represents a whopping 67.57 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $124.5, which represents a return potential of 34.59 percent when compared to the closing price of the stock of $92.5 on Friday, February 08. The lowest price target for the stock is $97 — slightly more than 4.86 percent from EOG’s current share price.

History has shown that shares in EOG Resources, Inc. have gone down on 22 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of EOG’s Q4 earnings on February 26. Analysts are forecasting revenue to climb 34.4 percent to $4.49B in the fiscal fourth quarter, while earnings are seen soaring by nearly 102.9 percent to $1.4 per share. It earned $1.75 per share, better than the $1.52, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $4.78B, better than the $4.55B analysts expected. Earnings are estimated to increase by 133.4 percent this year, -17.09 percent next year and continue to increase by 0 percent annually for the next 5 years.

Let’s take a look at some insider activity at EOG Resources, Inc. (NYSE:EOG) and see the pattern. The earliest insider trade took place on 01/09/2019. Yacob Ezra Y parted with a total of 2.39 thousand shares of company at average share price of $98.77. The total for the sales was set at $235.86 thousand. After this transaction, the EVP Exploration and Production account balance stood at 45.42 thousand shares. The stock lost -6.35 percent since that insider sale. On 12/20/2018, Wisner Frank G, Director, sold 3.15 thousand shares at a price per share of $92.6. This removed 291.69 thousand shares from the insider’s fortune and the stock saw a -0.11 percent retreat in value since the news became public. This transaction left 120.34 thousand shares in the Director account.

On 09/28/2018, EVP Exploration and Production Trice David W performed a sale transaction worth $317.2 thousand. This sale at $127.44 each has eliminated 2.49 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -27.42 percent decrease since the transaction was reported. The insider now is left with 74.81 thousand shares remaining in the account. Crisp Charles R, who performs the Director job, sold 1.79 thousand shares for $209.31 thousand. The disposal occurred on 09/11/2018 was priced at $116.8 per share. The share price plunged -20.8 percent since the reporting date. Crisp Charles R now left with a stake of 46.49 thousand EOG stock worth $4.3 million after the insider selling.

The stock is currently hovering around the first support level of $90.54. Below this, the next support is placed in the zone of $88.57. Till the time, the EOG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 35.93 on daily chart, which may remain a cause for comfort. If the price breaks below $88.57 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $93.87 mark may result into a pull-back move towards $95.23 level.

Shares of EOG Resources, Inc. (EOG) are trading at a P/E ratio of 19.48 times earnings reported for the past 12 months. The industry EOG operates in has an average P/E of 8.71. Its P/E ratio went as low as 17.32X and as high as 163.23 over the 5-year span.Further, it is sporting a 3.37 on the Price-to-Sales ratio. Compare this with the industry average P/S of 77.53. 54.9 percent is the gross profit margin for EOG Resources, Inc. and operating margin sits at 23.9 percent. Along with this, the net profit margin is 31 percent.