Viper Energy Partners (NASDAQ:VNOM) Rating Lowered to Hold at Zacks Investment Research

Viper Energy Partners (NASDAQ:VNOMGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday, Zacks.com reports. They presently have a $31.00 target price on the oil and gas producer’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 1.94% from the stock’s current price.

According to Zacks, “Viper Energy generates strong and steady royalty income from mineral interests in Eagle Ford and the Permian Basin. The partnership has 26,708 net royalty acres, with 44 rigs currently operating on those acreages. For 2022, Viper Energy increased its average oil equivalent production guidance to 30.5-32.75 MBoe/d, which is expected to boost profits. The partnership also increased its quarterly cash distribution 42.6% to 67 cents per common unit. Its board increased its common unit repurchase program to $250 million from $150 million earlier. However, the partnership’s balance sheet weakness raises questions regarding its ability to meet the debt obligations. Also, it has been constantly bearing the brunt of increasing costs for the past few quarters, adversely affecting the income. As such, the stock warrants a cautious stance.”

A number of other analysts have also recently weighed in on VNOM. KeyCorp increased their price target on Viper Energy Partners from $28.00 to $33.00 and gave the stock an “overweight” rating in a research report on Monday, April 11th. TD Securities increased their price target on Viper Energy Partners from $34.00 to $35.00 and gave the stock a “buy” rating in a research report on Tuesday, May 3rd. Truist Financial increased their price target on Viper Energy Partners from $40.00 to $45.00 in a research report on Thursday, April 21st. StockNews.com initiated coverage on Viper Energy Partners in a research report on Thursday, March 31st. They issued a “hold” rating on the stock. Finally, Wells Fargo & Company raised their target price on Viper Energy Partners from $30.00 to $35.00 and gave the company an “overweight” rating in a research report on Friday, March 25th. Two investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, Viper Energy Partners currently has an average rating of “Buy” and an average price target of $35.00.

NASDAQ:VNOM traded up $0.74 during trading hours on Wednesday, reaching $30.41. 6,177 shares of the stock were exchanged, compared to its average volume of 628,501. The company has a quick ratio of 3.68, a current ratio of 3.68 and a debt-to-equity ratio of 0.32. The firm has a 50 day simple moving average of $29.95 and a 200-day simple moving average of $26.64. Viper Energy Partners has a 52 week low of $15.98 and a 52 week high of $32.35. The stock has a market capitalization of $5.10 billion, a P/E ratio of 28.96 and a beta of 2.09.

Viper Energy Partners (NASDAQ:VNOMGet Rating) last announced its quarterly earnings results on Monday, May 2nd. The oil and gas producer reported $0.23 earnings per share for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.03). Viper Energy Partners had a return on equity of 3.22% and a net margin of 12.72%. During the same period last year, the firm earned ($0.08) EPS. As a group, analysts expect that Viper Energy Partners will post 1.52 earnings per share for the current year.

In other news, major shareholder Bx Guidon Topco Llc sold 123,000 shares of Viper Energy Partners stock in a transaction on Thursday, February 24th. The stock was sold at an average price of $28.38, for a total transaction of $3,490,740.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Holdings L.P. Blackstone III sold 210,000 shares of Viper Energy Partners stock in a transaction on Monday, February 28th. The shares were sold at an average price of $29.38, for a total value of $6,169,800.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 831,436 shares of company stock worth $24,701,964. 0.30% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in VNOM. Cardinal Capital Management LLC CT boosted its stake in shares of Viper Energy Partners by 13.5% during the 3rd quarter. Cardinal Capital Management LLC CT now owns 2,780,414 shares of the oil and gas producer’s stock worth $60,752,000 after acquiring an additional 331,032 shares in the last quarter. Comerica Bank boosted its stake in shares of Viper Energy Partners by 46.6% during the 3rd quarter. Comerica Bank now owns 912,870 shares of the oil and gas producer’s stock worth $17,429,000 after acquiring an additional 290,055 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in shares of Viper Energy Partners by 13.3% during the 3rd quarter. Bank of New York Mellon Corp now owns 2,458,876 shares of the oil and gas producer’s stock worth $53,727,000 after acquiring an additional 289,370 shares in the last quarter. Morgan Stanley boosted its stake in shares of Viper Energy Partners by 20.1% during the 2nd quarter. Morgan Stanley now owns 1,414,903 shares of the oil and gas producer’s stock worth $26,644,000 after acquiring an additional 237,242 shares in the last quarter. Finally, Boston Partners boosted its stake in shares of Viper Energy Partners by 13.8% during the 4th quarter. Boston Partners now owns 1,950,608 shares of the oil and gas producer’s stock worth $42,015,000 after acquiring an additional 236,655 shares in the last quarter. 47.03% of the stock is owned by institutional investors and hedge funds.

About Viper Energy Partners (Get Rating)

Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. As of December 31, 2021, it had mineral interests in 27,027 net royalty acres in the Permian Basin and Eagle Ford Shale; and estimated proved oil and natural gas reserves of 127,888 thousand barrels of crude oil equivalent.

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