Parsley Energy (NYSE:PE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday, Zacks.com reports.

According to Zacks, “Parsley's strategic acreage position in the low-cost high-margin Permian Basin is responsible for its robust production growth since several years. Importantly, this year, the upstream player expects total output to grow more than 18% year over year despite capex cuts. As it is, low leverage provides the firm with enough financial flexibility. Parsley's impressive reserve replacement ratio of over 406% also bodes well. However, Parsley's geographic concentration risk and infrastructural bottlenecks in the Permian region still remain matters of concern. Further, there are investor concerns over high costs impacting profit levels. Finally, Parsley Energy's cash flow deficit is also a cause of worry. Hence, the stock warrants a cautious stance. “

Other analysts also recently issued reports about the stock. ValuEngine downgraded shares of Parsley Energy from a “sell” rating to a “strong sell” rating in a report on Wednesday, May 1st. Williams Capital reissued a “hold” rating and set a $26.00 price target on shares of Parsley Energy in a report on Thursday, May 2nd. TD Securities lowered their price target on shares of Parsley Energy from $27.00 to $26.00 and set a “buy” rating on the stock in a report on Friday, May 3rd. Goldman Sachs Group downgraded shares of Parsley Energy to a “buy” rating in a report on Friday, April 12th. Finally, Jefferies Financial Group lowered their price target on shares of Parsley Energy from $28.00 to $26.00 and set a “buy” rating on the stock in a report on Tuesday, March 5th. One research analyst has rated the stock with a sell rating, four have given a hold rating, twenty-five have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average price target of $30.87.

Parsley Energy stock traded up $0.02 during mid-day trading on Thursday, reaching $20.87. 160,788 shares of the company traded hands, compared to its average volume of 5,580,218. The company has a current ratio of 0.43, a quick ratio of 0.43 and a debt-to-equity ratio of 0.36. Parsley Energy has a fifty-two week low of $14.17 and a fifty-two week high of $33.25. The firm has a market capitalization of $6.60 billion, a price-to-earnings ratio of 14.80, a PEG ratio of 0.34 and a beta of 0.41.

Parsley Energy (NYSE:PE) last issued its quarterly earnings results on Wednesday, May 1st. The oil and natural gas company reported $0.22 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.23 by ($0.01). Parsley Energy had a net margin of 14.09% and a return on equity of 6.05%. The company had revenue of $427.67 million for the quarter, compared to analyst estimates of $410.04 million. During the same quarter in the previous year, the company posted $0.31 EPS. The company’s revenue for the quarter was up 8.9% compared to the same quarter last year. On average, sell-side analysts predict that Parsley Energy will post 1.66 EPS for the current fiscal year.

In other news, insider Colin Roberts sold 3,500 shares of the stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $18.73, for a total value of $65,555.00. Following the completion of the sale, the insider now directly owns 274,926 shares in the company, valued at $5,149,363.98. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mike Hinson sold 41,727 shares of the stock in a transaction dated Friday, March 1st. The shares were sold at an average price of $18.43, for a total transaction of $769,028.61. Following the completion of the sale, the insider now owns 398,275 shares of the company’s stock, valued at $7,340,208.25. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 48,227 shares of company stock worth $894,584. Insiders own 12.14% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of PE. JPMorgan Chase & Co. boosted its stake in shares of Parsley Energy by 6.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 15,220,803 shares of the oil and natural gas company’s stock worth $445,208,000 after buying an additional 865,292 shares during the last quarter. Vanguard Group Inc raised its stake in Parsley Energy by 4.0% in the third quarter. Vanguard Group Inc now owns 23,467,865 shares of the oil and natural gas company’s stock worth $686,436,000 after buying an additional 901,815 shares in the last quarter. DNB Asset Management AS raised its stake in Parsley Energy by 8.6% in the fourth quarter. DNB Asset Management AS now owns 30,191 shares of the oil and natural gas company’s stock worth $482,000 after buying an additional 2,400 shares in the last quarter. Peregrine Capital Management LLC raised its stake in Parsley Energy by 243,059.7% in the fourth quarter. Peregrine Capital Management LLC now owns 826,743 shares of the oil and natural gas company’s stock worth $13,211,000 after buying an additional 826,403 shares in the last quarter. Finally, Nippon Life Global Investors Americas Inc. raised its stake in Parsley Energy by 24.5% in the fourth quarter. Nippon Life Global Investors Americas Inc. now owns 302,050 shares of the oil and natural gas company’s stock worth $4,827,000 after buying an additional 59,360 shares in the last quarter. Institutional investors and hedge funds own 83.23% of the company’s stock.

Parsley Energy Company Profile

Parsley Energy, Inc, an independent oil and natural gas company, engages in the acquisition, development, production, exploration, and sale of crude oil and natural gas properties in the Permian Basin in West Texas and Southeastern New Mexico. As of December 31, 2017, its acreage position consisted of 219,747 net acres, including 174,392 net acres in the Midland Basin and 45,355 net acres in the Delaware Basin; and 241.0 net producing horizontal wells and 731.5 net producing vertical wells, as well an estimated proved oil and natural gas reserves were 416.4 MMBoe.

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