If You Own EOG Resources, Inc. (EOG), You Should Buy More

EOG Resources, Inc. (NYSE:EOG) dropped -1.86% in recent trade and currently has a stock-market value of $60.46B. The shares finished at $102.13, after trading as low as $99.56 earlier in the session. It hit an intraday high Thursday at $102.29. Trading activity significantly improved as the volume at ready counter increased to 4,823,342 shares versus 4,204,400 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,353,816 shares. The stock is now 5.79% above against its bear-market low of $96.54 on February 09, 2018. It has retreated -30.75% since it’s 52-week high of $133.53 reached in October. Now the market price is up 1.22% on the year and down -5.36% YTD.

EOG’s 50 day simple moving average (SMA 50) price is $112.36 and its 200-day simple moving average (SMA 200) price is $115.06. The company’s stock currently has a total float of 577.16M shares. Its weekly volatility is hovering around 2.88% and felt 3.22% volatility in price over a month. On the upside, the share price will test short term resistance at around $103.09. On a downside, the stock is likely to find some support, which begins at $100.36. The failure to get near-term support could push it to $98.6.

Separately, it has been reported that multiple insider activity took place at EOG Resources, Inc. (EOG). EVP Exploration and Production Trice David W sold 2,489 shares for $74,807 in transaction occurred on 2018/09/28. After making this transaction, the EVP Exploration and Production owns a direct stake of 317,198 shares, worth $7,640,039, as per the last closing price. On 2018/09/11 Crisp Charles R, Director at EOG, dumped 1,792 shares at an average price of $116.8 per share. The selling total is valued at $4,748,126.

Chairman & CEO, Thomas William R. had divested 57,065 shares for $612,699 through a trade on 2018/08/10. Following this activity, the insider holds 6,982,473 shares worth $62,574,949 as of recent close. Wall Street’s most bullish EOG Resources, Inc. (NYSE:EOG) analysts are predicting the share price to blow past $185 per share during the next 12 months. The current median share price forecast by them is $138, suggesting that the stock could increase 35.12% in that time frame. The average price target of $138.82 calls for a nearly 35.92% increase in the stock price.

It had seen a new analyst call from MKM Partners, which initiated the stock at Buy on December 06. Analysts at Credit Suisse, shed their negative views on November 16 by lifting it fromNeutral to Outperform. Analysts at Wells Fargo, made their first call about the stock on October 24, recommending it is Market Perform. Piper Jaffray, released new analyst coverage on September 28, calling the stock is Overweight.

When looking at valuations, EOG Resources, Inc. (EOG) has a pricey P/E of 21.51x as compared to industry average of 16.71x. Moreover, it trades for 14.25 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.18x price/book and 3.78x price/sales. Compared to others, EOG Resources, Inc. is in a different league with regards to profitability, having net margins of 31%. To put some perspective around this, the industry’s average net margin is 6.89%. EOG’s ROE is 28.7%, which is also considerably better than the industry’s ROE of 6.89%. It’s also very liquid in the near term, with a current ratio of 1.1. The stock has a debt/capital of 0.35.

Shares of EOG Resources, Inc. (EOG) have dropped -2.6% since the company’s last earnings report. Over the past 12 fiscal quarters, EOG Resources, Inc. (NYSE:EOG) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 2 quarters (16%), whereas at 1 occasion EPS met analyst expectations. EOG last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.75 per share, -88.49% change on the same period last year. That was better than consensus for $1.52. Revenue for the recent quarter stood at $4.78 billion, up 81% on last year and above the $4.55 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $4.23 billion to $4.91 billion, which should be compared with $3.47 billion generated last year. EPS is seen in a range of $1.27 to $2.17, against the $0.56 reported a year ago.