Southwestern Energy (NYSE:SWN) Shares Down 7.3% After Analyst Downgrade

Shares of Southwestern Energy (NYSE:SWNGet Rating) fell 7.3% during mid-day trading on Tuesday after Morgan Stanley lowered their price target on the stock from $8.00 to $7.50. Morgan Stanley currently has an equal weight rating on the stock. Southwestern Energy traded as low as $6.97 and last traded at $6.98. 500,327 shares traded hands during mid-day trading, a decline of 98% from the average session volume of 30,394,426 shares. The stock had previously closed at $7.53.

Several other brokerages have also recently issued reports on SWN. Bank of America upgraded shares of Southwestern Energy from a “neutral” rating to a “buy” rating and raised their target price for the stock from $11.00 to $13.00 in a report on Tuesday, July 19th. The Goldman Sachs Group dropped their price target on shares of Southwestern Energy from $9.50 to $7.50 and set a “neutral” rating on the stock in a research note on Tuesday, July 5th. Mizuho dropped their price target on shares of Southwestern Energy from $13.00 to $11.00 and set a “buy” rating on the stock in a research note on Tuesday, July 19th. Citigroup reiterated a “buy” rating and set a $8.00 price target on shares of Southwestern Energy in a research note on Thursday, July 21st. Finally, Wells Fargo & Company upgraded shares of Southwestern Energy from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $10.00 to $12.00 in a research note on Monday, July 11th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and eleven have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $9.36.

Institutional Investors Weigh In On Southwestern Energy

A number of hedge funds have recently modified their holdings of SWN. M&T Bank Corp acquired a new stake in shares of Southwestern Energy in the fourth quarter valued at about $51,000. Northern Trust Corp raised its position in shares of Southwestern Energy by 36.8% in the fourth quarter. Northern Trust Corp now owns 11,891,627 shares of the energy company’s stock valued at $55,416,000 after buying an additional 3,197,441 shares during the last quarter. ProShare Advisors LLC raised its position in shares of Southwestern Energy by 143.0% in the fourth quarter. ProShare Advisors LLC now owns 253,981 shares of the energy company’s stock valued at $1,183,000 after buying an additional 149,458 shares during the last quarter. First Trust Advisors LP raised its position in shares of Southwestern Energy by 84.9% in the fourth quarter. First Trust Advisors LP now owns 5,187,680 shares of the energy company’s stock valued at $24,175,000 after buying an additional 2,382,025 shares during the last quarter. Finally, CIBC Asset Management Inc raised its position in shares of Southwestern Energy by 45.7% in the fourth quarter. CIBC Asset Management Inc now owns 71,507 shares of the energy company’s stock valued at $333,000 after buying an additional 22,428 shares during the last quarter. 82.32% of the stock is currently owned by institutional investors and hedge funds.

Southwestern Energy Price Performance

The firm has a market capitalization of $8.35 billion, a price-to-earnings ratio of -5.35 and a beta of 1.23. The stock’s 50-day moving average price is $6.85 and its 200 day moving average price is $6.91. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 4.87.

Southwestern Energy (NYSE:SWNGet Rating) last released its quarterly earnings data on Thursday, August 4th. The energy company reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.35 by ($0.02). Southwestern Energy had a positive return on equity of 165.90% and a negative net margin of 8.58%. The firm had revenue of $4.14 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same quarter in the previous year, the business posted $0.19 earnings per share. Southwestern Energy’s revenue for the quarter was up 294.1% on a year-over-year basis. Equities research analysts expect that Southwestern Energy will post 1.38 earnings per share for the current fiscal year.

Southwestern Energy announced that its board has initiated a stock buyback program on Tuesday, June 21st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the energy company to purchase up to 13.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

About Southwestern Energy

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Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana.

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