Analysts Are Downgrading These 5 Energy Stocks

4. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 51     

EOG Resources, Inc. (NYSE:EOG) operates as an energy firm with prime interests in the oil and gas sector. The CEO of the firm was part of a group of industry executives who recently refused to testify before a House Natural Resources Committee. Raul Grijalva, the chair of the committee, had called on the executives from the highest oil and gas producing firms in the US on land and water to testify in a probe related to surging energy prices. Grijalva has called on oil firms to answer regarding a rise in oil prices despite record profits. 

On March 24, TD Securities analyst Menno Hulshof downgraded EOG Resources, Inc. (NYSE:EOG) stock to Hold from Buy but raised the price target to $140 from $130, saying the shares were now close to “fairly valued” and the premium justified in light of a record of operational excellence and asset quality of the firm. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in EOG Resources, Inc. (NYSE:EOG) with 9.8 million shares worth more than $872 million.  

In its Q4 2021 investor letter, Artisan Partners highlighted a few stocks and EOG Resources, Inc. (NYSE:EOG) was one of them. Here is what the fund said:

“EOG Resources, Inc. (NYSE:EOG), a US shale-focused E&P firm, has been a beneficiary of higher energy prices. The business enjoys a low-cost production position and a strong balance sheet which enabled EOG Resources, Inc. (NYSE:EOG) to increase production capabilities during the downturn. As energy prices recover and the industry adjusts to the new supply and demand dynamics, investors have begun to appreciate the earnings power of the business. EOG’s management focuses on return on invested capital and cash flow generation, which distinguishes it from most of the company’s competitors. We believe EOG’s high-quality management team and access to low-cost reserves are sustainable competitive advantages in a commodity industry.”