Coterra Energy, an independent oil and gas company, has recently gained significant attention from institutional investors. Hedge funds and other entities now own approximately 87.92% of the company's stock.
Socorro Asset Management LP has increased its stake, holding 403,106 shares valued at $9,654,000 after acquiring an additional 59,204 shares. Edgestream Partners L.P. has also entered the fray, purchasing a new position in Coterra Energy worth about $2,221,000 during the third quarter. This influx of institutional investment highlights the growing confidence in Coterra Energy's potential within the competitive energy sector.
Coterra Energy primarily operates in the United States, focusing on the development, exploration, and production of oil, natural gas, and natural gas liquids. The company has substantial properties in strategic locations, including approximately 186,000 net acres in the Marcellus Shale, 296,000 net acres in the Permian Basin, and 182,000 net acres in the Anadarko Basin. These locations position Coterra Energy well to capitalize on the ongoing demand for energy resources.
Analyst reports have shown a positive outlook for Coterra Energy. UBS Group raised its price target from $31.00 to $35.00, suggesting a potential upside of 34.82% from the current stock price. Mizuho also increased its target price from $36.00 to $37.00. JPMorgan Chase & Co. adjusted its target down to $26.00 but still holds an "overweight" rating. Overall, the stock has garnered an average rating of "Moderate Buy" with a target price of $32.24.
Coterra Energy's stock performance has been noteworthy, trading up 2.1% recently to hit $25.96. The trading volume reached 1,581,471 shares, significantly lower than its average volume of 6,223,049. The company's market capitalization stands at $19.12 billion, with a P/E ratio of 15.57 and a price-to-earnings-growth ratio of 1.67. These metrics suggest that Coterra Energy is positioned well within the market.
In its latest quarterly earnings report, Coterra Energy reported earnings per share (EPS) of $0.32, falling short of analysts' expectations of $0.35. However, the company achieved revenue of $1.36 billion, surpassing the anticipated $1.28 billion. This performance reflects a net margin of 21.91% and a return on equity of 9.38%. Year-over-year revenue growth was modest, with a 0.2% increase compared to the previous year.
Analysts forecast that Coterra Energy will post an EPS of 1.53 for the current year. The ongoing investments from institutional players and the positive analyst ratings may provide a buffer against market volatility, positioning Coterra Energy as a potentially lucrative investment opportunity in the oil and gas sector.
The recent activity among institutional investors highlights a trend of increasing confidence in Coterra Energy. Clearline Capital LP and Benjamin Edwards Inc. are among the firms that have recently adjusted their stakes in the company. Benjamin Edwards Inc. notably lifted its stake by an astonishing 376,945.8%, now owning 90,491 shares valued at $2,167,000 after acquiring an additional 90,467 shares. Erste Asset Management GmbH also made a significant move, purchasing a new stake worth $21,555,000 in the third quarter.
This wave of institutional investment not only reflects a growing belief in Coterra Energy's business model but also indicates a broader trend of institutional players seeking opportunities in the energy sector. The combination of strong institutional backing and positive analyst sentiment positions Coterra Energy as a noteworthy player in the oil and gas industry, attracting attention from both investors and analysts alike.