JP Morgan slashes price target on QEP Resources Inc. [QEP] – find out why.

QEP Resources Inc. [NYSE: QEP] loss -4.45% on the last trading session, reaching $4.08 price per share at the time. The company report on March 13, 2021 that Glass Lewis Joins ISS in Reaffirming Support for Pending Acquisition of QEP Resources by Diamondback Energy.

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QEP Resources, Inc. (NYSE: QEP) (QEP or the Company) issued the following statement in response to Glass Lewis & Co.’s (Glass Lewis) decision to reaffirm its previous recommendation of support for the pending acquisition of QEP by Diamondback Energy, Inc. (Nasdaq: FANG) (Diamondback).

The Company is pleased to receive Glass Lewis’ continued support of its pending transaction with Diamondback Energy as evidenced by Glass Lewis reaffirming its position and continuing to recommend that QEP’s shareholders vote in favor of the transaction at the upcoming meeting of QEP’s stockholders on March 16, 2021 (Special Meeting). In its initial report, Glass Lewis recommended that shareholders vote in favor of the transaction given that QEP and Diamondback will have a “strengthened ability to generate returns for investors and return capital to stockholders, compared to QEP on a standalone basis” and that the proposed acquisition represents “the best path currently available to maximize QEP shareholder value.”.

QEP Resources Inc. represents 242.80 million in outstanding shares, while the company has a total market value of $1.03 billion with the latest information. QEP stock price has been found in the range of $3.9799 to $4.2032.

If compared to the average trading volume of 5.28M shares, QEP reached a trading volume of 10095196 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about QEP Resources Inc. [QEP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for QEP shares is $3.41 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on QEP stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for QEP Resources Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on December 08, 2020. The new note on the price target was released on July 20, 2020, representing the official price target for QEP Resources Inc. stock. Previously, the target price had yet another raise to $3, while MKM Partners analysts kept a Buy rating on QEP stock.

The Average True Range (ATR) for QEP Resources Inc. is set at 0.27, with the Price to Sales ratio for QEP stock in the period of the last 12 months amounting to 1.43. The Price to Book ratio for the last quarter was 0.37, with the Price to Cash per share for the same quarter was set at 0.24. Price to Free Cash Flow for QEP in the course of the last twelve months was 1.56 with Quick ratio for the last quarter at 0.70.

Trading performance analysis for QEP stock

QEP Resources Inc. [QEP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.39. With this latest performance, QEP shares gained by 17.92% in over the last four-week period, additionally plugging by 312.12% over the last 6 months – not to mention a rise of 626.63% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for QEP stock in for the last two-week period is set at 59.46, with the RSI for the last a single of trading hit 55.86, and the three-weeks RSI is set at 61.31 for QEP Resources Inc. [QEP]. The present Moving Average for the last 50 days of trading for this stock 3.34, while it was recorded at 4.22 for the last single week of trading, and 1.89 for the last 200 days.

QEP Resources Inc. [QEP]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and QEP Resources Inc. [QEP] shares currently have an operating margin of -30.16 and a Gross Margin at -18.21. QEP Resources Inc.’s Net Margin is presently recorded at +0.44.

Return on Total Capital for QEP is now -4.82, given the latest momentum, and Return on Invested Capital for the company is 0.07. Return on Equity for this stock inclined to 0.12, with Return on Assets sitting at 0.06. When it comes to the capital structure of this company, QEP Resources Inc. [QEP] has a Total Debt to Total Equity ratio set at 61.66. Additionally, QEP Total Debt to Total Capital is recorded at 38.14, with Total Debt to Total Assets ending up at 30.66. Long-Term Debt to Equity for the company is recorded at 60.77, with the Long-Term Debt to Total Capital now at 37.59.

Reflecting on the efficiency of the workforce at the company, QEP Resources Inc. [QEP] managed to generate an average of $12,451 per employee. Receivables Turnover for the company is 5.40 with a Total Asset Turnover recorded at a value of 0.13.QEP Resources Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 0.70.

QEP Resources Inc. [QEP]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, QEP Resources Inc. posted 0.21/share EPS, while the average EPS was predicted by analysts to be reported at 0/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for QEP.

An analysis of insider ownership at QEP Resources Inc. [QEP]

There are presently around $630 million, or 68.30% of QEP stock, in the hands of institutional investors. The top three institutional holders of QEP stocks are: BLACKROCK INC. with ownership of 24,517,648, which is approximately 4.78% of the company’s market cap and around 1.00% of the total institutional ownership; FMR LLC, holding 15,919,969 shares of the stock with an approximate value of $64.95 million in QEP stocks shares; and VANGUARD GROUP INC, currently with $61.4 million in QEP stock with ownership of nearly 8.435% of the company’s market capitalization.

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Positions in QEP Resources Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 89 institutional holders increased their position in QEP Resources Inc. [NYSE:QEP] by around 39,495,744 shares. Additionally, 84 investors decreased positions by around 19,993,136 shares, while 34 investors held positions by with 94,865,135 shares. The mentioned changes placed institutional holdings at 154,354,015 shares, according to the latest SEC report filing. QEP stock had 43 new institutional investments in for a total of 17,561,005 shares, while 26 institutional investors sold positions of 5,239,300 shares during the same period.

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