Zacks Investment Research downgraded shares of Concho Resources (NYSE:CXO) from a buy rating to a hold rating in a research report released on Wednesday.

According to Zacks, “Concho Resources' core operations are focused in the prolific Permian basin, providing this large-cap E&P with an enviable acreage of low-risk top-tier assets and a multiyear drilling inventory. While Concho's track record of production growth remains strong, it has been achieved at a competitive cost structure. CXO also maintains a robust balance sheet, while following a prudent investment approach. However, we remain concerned of the service cost inflation and the company’s lack of geographical diversification. Further, until the commodity prices rebound sufficiently, we believe investors should exhibit caution before accumulating shares.”

Other equities research analysts have also issued reports about the stock. Scotiabank set a $145.00 target price on shares of Concho Resources and gave the stock a buy rating in a report on Saturday, November 25th. Barclays increased their target price on shares of Concho Resources from $144.00 to $156.00 and gave the stock an overweight rating in a report on Monday, November 20th. SunTrust Banks set a $145.00 target price on shares of Concho Resources and gave the stock a buy rating in a report on Tuesday, October 31st. Cowen reiterated a hold rating and issued a $145.00 target price on shares of Concho Resources in a report on Sunday, October 22nd. Finally, KeyCorp set a $150.00 target price on shares of Concho Resources and gave the stock a buy rating in a report on Thursday, October 19th. Nine investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. The company has a consensus rating of Buy and a consensus price target of $153.89.

Shares of Concho Resources (CXO) traded up $2.00 during midday trading on Wednesday, reaching $140.21. 724,884 shares of the company traded hands, compared to its average volume of 910,126. Concho Resources has a fifty-two week low of $106.73 and a fifty-two week high of $147.77. The firm has a market capitalization of $20,551.28, a price-to-earnings ratio of 83.26 and a beta of 1.09. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.66 and a quick ratio of 0.66.

Concho Resources (NYSE:CXO) last announced its quarterly earnings data on Tuesday, October 31st. The oil and natural gas company reported $0.45 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.26 by $0.19. Concho Resources had a net margin of 24.19% and a return on equity of 2.92%. The business had revenue of $627.00 million for the quarter, compared to analyst estimates of $614.12 million. During the same period in the prior year, the business posted $0.32 earnings per share. Concho Resources’s revenue was up 45.8% compared to the same quarter last year. equities research analysts anticipate that Concho Resources will post 1.82 earnings per share for the current fiscal year.

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of Concho Resources by 3.1% in the 2nd quarter. Vanguard Group Inc. now owns 15,139,409 shares of the oil and natural gas company’s stock valued at $1,839,892,000 after acquiring an additional 454,428 shares during the period. Capital World Investors grew its position in shares of Concho Resources by 10.6% in the 2nd quarter. Capital World Investors now owns 10,792,500 shares of the oil and natural gas company’s stock valued at $1,311,613,000 after acquiring an additional 1,034,000 shares during the period. State Street Corp grew its position in shares of Concho Resources by 0.3% in the 2nd quarter. State Street Corp now owns 7,893,306 shares of the oil and natural gas company’s stock valued at $959,272,000 after acquiring an additional 20,760 shares during the period. JPMorgan Chase & Co. grew its position in shares of Concho Resources by 30.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 6,790,818 shares of the oil and natural gas company’s stock valued at $825,288,000 after acquiring an additional 1,599,084 shares during the period. Finally, Jennison Associates LLC grew its position in shares of Concho Resources by 3.6% in the 2nd quarter. Jennison Associates LLC now owns 6,038,410 shares of the oil and natural gas company’s stock valued at $733,848,000 after acquiring an additional 211,679 shares during the period. 94.55% of the stock is owned by institutional investors and hedge funds.

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Concho Resources Company Profile

Concho Resources Inc is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s four operating areas include the Northern Delaware Basin, the Southern Delaware Basin, the Midland Basin and the New Mexico Shelf.

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