Zacks Investment Research upgraded shares of Parsley Energy (NYSE:PE) from a hold rating to a buy rating in a research report report published on Tuesday, Zacks.com reports. The firm currently has $23.00 price objective on the oil and natural gas company’s stock.

According to Zacks, “Parsley Energy appears to be a lucrative bet at the moment on account of several tailwinds. The company’s strategic acreage position and strong inventory of drilling locations in the low-cost-high-return Permian Basin poise it for robust production growth. Parsley expects its total output to grow 18% y/y in 2019 despite capex cuts. The firm’s emphasis on reducing its capital outlay along with improving its capital efficiency and cash flow generation bode well. As it is, the company’s debt-to-capital ratio of around 26% is lower than most peers, providing it with enough financial flexibility to tap strategic growth opportunities. Parsley's impressive reserve replacement ratio of over 406% is also another positive. As such, analysts are bullish on the stock. “

Several other brokerages have also recently commented on PE. KeyCorp increased their target price on shares of Parsley Energy from $21.00 to $23.00 and gave the stock an overweight rating in a report on Monday, April 22nd. SunTrust Banks set a $30.00 target price on shares of Parsley Energy and gave the stock a buy rating in a report on Tuesday, April 23rd. Wolfe Research upgraded shares of Parsley Energy from a peer perform rating to an outperform rating in a report on Thursday, April 18th. ValuEngine raised shares of Parsley Energy from a strong sell rating to a sell rating in a research report on Thursday, April 18th. Finally, Goldman Sachs Group lowered shares of Parsley Energy to a buy rating in a research report on Friday, April 12th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, twenty-six have issued a buy rating and one has issued a strong buy rating to the company’s stock. Parsley Energy currently has a consensus rating of Buy and an average target price of $30.87.

PE traded down $0.22 during trading hours on Tuesday, hitting $20.31. 246,387 shares of the company’s stock were exchanged, compared to its average volume of 5,667,106. Parsley Energy has a 1-year low of $14.17 and a 1-year high of $33.25. The stock has a market capitalization of $6.34 billion, a price-to-earnings ratio of 14.40, a PEG ratio of 0.34 and a beta of 0.41. 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 (NYSE:PE) last announced its earnings results on Wednesday, May 1st. The oil and natural gas company reported $0.22 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.23 by ($0.01). Parsley Energy had a return on equity of 6.05% and a net margin of 14.09%. The business 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 business’s revenue for the quarter was up 8.9% compared to the same quarter last year. As a group, research analysts predict that Parsley Energy will post 1.66 earnings per share for the current fiscal year.

In other news, insider Colin Roberts sold 3,000 shares of Parsley Energy stock in a transaction on Friday, April 12th. The shares were sold at an average price of $20.00, for a total value of $60,000.00. Following the completion of the sale, the insider now owns 271,926 shares in the company, valued at approximately $5,438,520. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mike Hinson sold 41,727 shares of Parsley Energy stock in a transaction on 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 approximately $7,340,208.25. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 48,227 shares of company stock valued at $894,584. Company insiders own 12.14% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the business. Nippon Life Global Investors Americas Inc. raised its stake in Parsley Energy by 24.5% in the 4th quarter. Nippon Life Global Investors Americas Inc. now owns 302,050 shares of the oil and natural gas company’s stock valued at $4,827,000 after acquiring an additional 59,360 shares during the period. Bain Capital Credit LP purchased a new stake in Parsley Energy in the fourth quarter worth approximately $2,016,000. Norges Bank purchased a new stake in Parsley Energy in the fourth quarter worth approximately $34,928,000. S&CO Inc. boosted its stake in Parsley Energy by 46.8% in the first quarter. S&CO Inc. now owns 346,620 shares of the oil and natural gas company’s stock worth $6,690,000 after buying an additional 110,548 shares in the last quarter. Finally, Ninepoint Partners LP boosted its stake in shares of Parsley Energy by 108.3% during the fourth quarter. Ninepoint Partners LP now owns 500,000 shares of the oil and natural gas company’s stock valued at $7,990,000 after purchasing an additional 260,000 shares during the period. 83.23% of the stock is currently owned by hedge funds and other institutional investors.

About Parsley Energy

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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