CNX Resources (NYSE:CNX) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of CNX Resources (NYSE:CNX) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning, Zacks.com reports. The firm currently has $8.00 target price on the oil and gas producer’s stock.

According to Zacks, “CNX Resources' focus on low-cost production areas and increasing consciousness to lower emissions will drive demand for natural gas and are going to act as tailwinds. Share buyback, planned capital expenditures and increasing focus on Marcellus and Utica shales are also going to strengthen the company’s performance. This oil and natural gas company will also benefit from its cost savings initiatives. However, shares of the company have underperformed its industry over the last three months. CNX Resources’ dependence on third-party assets for processing and transportation, along with competitiveness of domestic oil and natural gas are headwinds. The exploration and production of natural gas involve a lot of risks, and could impact its operating results, going forward.”

Shares of NYSE:CNX opened at $6.91 on Tuesday. The stock’s 50 day simple moving average is $7.35. CNX Resources has a 12-month low of $6.78 and a 12-month high of $17.39. The firm has a market cap of $1.39 billion, a price-to-earnings ratio of 4.52 and a beta of 0.71. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.59 and a current ratio of 0.62.

CNX Resources (NYSE:CNX) last issued its quarterly earnings results on Tuesday, April 30th. The oil and gas producer reported $0.14 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.21 by ($0.07). CNX Resources had a return on equity of 5.66% and a net margin of 12.00%. The firm had revenue of $278.40 million for the quarter, compared to the consensus estimate of $408.29 million. During the same period last year, the company posted $0.19 EPS. The business’s revenue was down 43.8% on a year-over-year basis. Analysts forecast that CNX Resources will post 0.61 earnings per share for the current fiscal year.

In other news, Director Bernard Lanigan, Jr. purchased 198,000 shares of the business’s stock in a transaction dated Friday, May 31st. The stock was bought at an average price of $7.56 per share, with a total value of $1,496,880.00. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director J. Palmer Clarkson purchased 20,000 shares of the business’s stock in a transaction dated Tuesday, June 25th. The shares were purchased at an average cost of $6.98 per share, with a total value of $139,600.00. The disclosure for this purchase can be found here. In the last ninety days, insiders have bought 297,550 shares of company stock valued at $2,211,382. 2.40% of the stock is currently owned by insiders.

Several institutional investors have recently modified their holdings of CNX. BlackRock Inc. grew its position in CNX Resources by 1.9% during the fourth quarter. BlackRock Inc. now owns 18,408,505 shares of the oil and gas producer’s stock valued at $210,225,000 after acquiring an additional 340,719 shares during the period. Great West Life Assurance Co. Can grew its position in CNX Resources by 12.3% during the fourth quarter. Great West Life Assurance Co. Can now owns 124,262 shares of the oil and gas producer’s stock valued at $1,314,000 after acquiring an additional 13,601 shares during the period. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in CNX Resources during the fourth quarter valued at about $260,000. Dimensional Fund Advisors LP grew its position in CNX Resources by 1.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 15,751,720 shares of the oil and gas producer’s stock valued at $179,888,000 after acquiring an additional 192,424 shares during the period. Finally, Geode Capital Management LLC grew its position in CNX Resources by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 1,999,815 shares of the oil and gas producer’s stock valued at $22,837,000 after acquiring an additional 79,739 shares during the period. 95.94% of the stock is owned by institutional investors.

About CNX Resources

CNX Resources Corporation, an independent oil and gas company, explores for, develops, and produces natural gas primarily in the Appalachian Basin. The company operates through two divisions, Exploration and Production (E&P), and Midstream. The E&P division produces pipeline quality natural gas primarily to gas wholesalers.

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