Denbury Resources (DNR) Lowered to “Sell” at Zacks Investment Research
According to Zacks, “Denbury Resources’ significant exposure to debt is a concern. The high debt load of the company as reflected in the upstream player’s debt to equity ratio is significantly higher than the broader industry. Also, the prevailing volatility in oil prices has been hurting the stock. Denbury expects 2019 capital expenditure in the range of $240-$260 million, down 20-25% from the 2018 capital spending level. Lower spending will impact production and lesser production might lead to lower cash flow. Given these headwinds, we see Denbury as a risky bet that ordinary investors should exit.”
Several other brokerages have also recently issued reports on DNR. Johnson Rice cut Denbury Resources from an accumulate rating to a hold rating in a report on Tuesday, January 8th. Imperial Capital set a $2.00 target price on Denbury Resources and gave the stock a hold rating in a report on Thursday, March 28th. Oppenheimer reaffirmed a hold rating on shares of Denbury Resources in a report on Thursday, March 21st. TheStreet raised Denbury Resources from a d+ rating to a c rating in a report on Monday, December 17th. Finally, Capital One Financial cut Denbury Resources from an overweight rating to an underweight rating in a report on Thursday, December 20th. Three investment analysts have rated the stock with a sell rating and seven have assigned a hold rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $4.36.
Denbury Resources (NYSE:DNR) last issued its earnings results on Wednesday, February 27th. The oil and natural gas company reported $0.10 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.09 by $0.01. Denbury Resources had a return on equity of 23.95% and a net margin of 21.90%. The firm had revenue of $336.00 million for the quarter, compared to analysts’ expectations of $329.65 million. During the same period in the previous year, the firm posted $0.12 earnings per share. The business’s revenue was up 4.7% compared to the same quarter last year. As a group, research analysts predict that Denbury Resources will post 0.45 EPS for the current fiscal year.
In related news, insider Christian S. Kendall acquired 150,000 shares of Denbury Resources stock in a transaction on Tuesday, March 26th. The shares were bought at an average cost of $2.00 per share, with a total value of $300,000.00. Following the completion of the purchase, the insider now directly owns 1,751,765 shares of the company’s stock, valued at approximately $3,503,530. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 1.10% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of DNR. State of Alaska Department of Revenue boosted its position in shares of Denbury Resources by 3.2% during the fourth quarter. State of Alaska Department of Revenue now owns 153,926 shares of the oil and natural gas company’s stock valued at $263,000 after buying an additional 4,775 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of Denbury Resources by 23.1% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 28,293 shares of the oil and natural gas company’s stock valued at $48,000 after buying an additional 5,309 shares during the period. SG Americas Securities LLC boosted its position in shares of Denbury Resources by 25.9% during the fourth quarter. SG Americas Securities LLC now owns 27,643 shares of the oil and natural gas company’s stock valued at $47,000 after buying an additional 5,688 shares during the period. Shelton Capital Management boosted its position in shares of Denbury Resources by 15.4% during the fourth quarter. Shelton Capital Management now owns 46,431 shares of the oil and natural gas company’s stock valued at $79,000 after buying an additional 6,195 shares during the period. Finally, Hartford Investment Management Co. boosted its position in shares of Denbury Resources by 4.8% during the fourth quarter. Hartford Investment Management Co. now owns 149,070 shares of the oil and natural gas company’s stock valued at $255,000 after buying an additional 6,800 shares during the period. 89.56% of the stock is currently owned by institutional investors.
About Denbury Resources
Denbury Resources Inc operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region.
Further Reading: Penny Stocks, Risk and Reward Factors
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Denbury Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Denbury Resources and related companies with MarketBeat.com's FREE daily email newsletter.