Goldman Sachs Downgrades EOG Resources

06/14/2023

Fintel reports that on June 13, 2023, Goldman Sachs downgraded their outlook for EOG Resources (NYSE:EOG) from Buy to Neutral.

Analyst Price Forecast Suggests 27.98% Upside

As of June 1, 2023, the average one-year price target for EOG Resources is 145.79. The forecasts range from a low of 116.15 to a high of $178.50. The average price target represents an increase of 27.98% from its latest reported closing price of 113.92.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for EOG Resources is 28,425MM, a decrease of 0.02%. The projected annual non-GAAP EPS is 15.36.

EOG Resources Declares $0.82 Dividend

On May 4, 2023 the company declared a regular quarterly dividend of $0.82 per share ($3.30 annualized). Shareholders of record as of July 17, 2023 will receive the payment on July 31, 2023. Previously, the company paid $0.82 per share.

At the current share price of $113.92 / share, the stock’s dividend yield is 2.90%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.12%, the lowest has been 0.57%, and the highest has been 4.82%. The standard deviation of yields is 0.96 (n=237).

The current dividend yield is 0.80 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.27. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 1.87%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2507 funds or institutions reporting positions in EOG Resources. This is a decrease of 12 owner(s) or 0.48% in the last quarter. Average portfolio weight of all funds dedicated to EOG is 0.47%, an increase of 0.16%. Total shares owned by institutions decreased in the last three months by 0.94% to 654,437K shares. The put/call ratio of EOG is 0.87, indicating a bullish outlook.

What are Other Shareholders Doing?

Capital Research Global Investors holds 30,575K shares representing 5.23% ownership of the company. In it’s prior filing, the firm reported owning 24,994K shares, representing an increase of 18.25%. The firm increased its portfolio allocation in EOG by 2.23% over the last quarter.

Wellington Management Group Llp holds 26,897K shares representing 4.60% ownership of the company. In it’s prior filing, the firm reported owning 23,920K shares, representing an increase of 11.07%. The firm decreased its portfolio allocation in EOG by 86.12% over the last quarter.

Jpmorgan Chase holds 24,990K shares representing 4.27% ownership of the company. In it’s prior filing, the firm reported owning 21,651K shares, representing an increase of 13.36%. The firm decreased its portfolio allocation in EOG by 5.60% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 18,200K shares representing 3.11% ownership of the company. In it’s prior filing, the firm reported owning 17,863K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in EOG by 16.73% over the last quarter.

Capital International Investors holds 15,713K shares representing 2.69% ownership of the company. In it’s prior filing, the firm reported owning 20,678K shares, representing a decrease of 31.60%. The firm decreased its portfolio allocation in EOG by 35.55% over the last quarter.

EOG Resources Background Information
(This description is provided by the company.)

EOG Resources, Inc. is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China.

Key filings for this company:

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K

This article originally appeared on Fintel

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