Barclays Initiates Coverage on Occidental Petroleum with Equal Weight Rating

Barclays has commenced coverage of Occidental Petroleum (NYSE: OXY) with an equal weight rating, as reported by MarketBeat.com on Wednesday morning. This marks a significant development for the oil and gas producer, which has been the subject of various analyses from other financial institutions recently.

In a report dated October 2, Roth MKM raised its target price for Occidental Petroleum from $45.00 to $46.00 while maintaining a “neutral” rating. Conversely, JPMorgan Chase & Co. issued an “underweight” rating, setting a price objective of $44.00, reduced from $51.00, in a note released on December 8. Additionally, Evercore ISI lowered its target price from $40.00 to $38.00 and assigned an “underperform” rating in a document dated October 3.

The stock has experienced mixed ratings from analysts. Currently, one analyst has given it a Strong Buy rating, six have assigned a Buy rating, ten have provided a Hold rating, and four have issued Sell ratings. According to MarketBeat.com, the average rating stands at “Hold” with a consensus target price of $47.84.

Recent Financial Performance

Occidental Petroleum’s stock saw a 2.3% increase recently, following the release of its earnings results on November 10. The firm reported earnings per share (EPS) of $0.64 for the quarter, exceeding the consensus estimate of $0.48 by $0.16. The company’s net margin was recorded at 7.81%, with a return on equity of 12.35%. Revenue for the quarter reached $6.62 billion, slightly below the estimate of $6.66 billion, marking a 6.1% decline year over year.

Analysts predict that Occidental Petroleum will report an EPS of 3.58 for the current year, indicating cautious optimism about the company’s future performance.

Dividend Declaration and Insider Activity

The company also announced a quarterly dividend recently, which was paid on January 15 to shareholders of record as of December 10. Shareholders received a dividend of $0.24, translating to an annualized dividend of $0.96 and a yield of 2.2%. The ex-dividend date was set for December 10, and Occidental Petroleum’s payout ratio stands at 70.59%.

In related developments, Director William R. Klesse purchased 5,000 shares of the company on December 16, at an average price of $38.98 per share, totaling approximately $194,900. Following this acquisition, Klesse’s stake in Occidental increased by 2.34%, bringing his total holdings to 218,913 shares, valued at around $8.53 million. This transaction was disclosed to the Securities and Exchange Commission.

Institutional Investor Activity

A variety of hedge funds and institutional investors have either increased or decreased their stakes in Occidental Petroleum recently. Notably, University of Texas Texas A&M Investment Management Co. acquired a new stake in the firm, valued at $27,000. City Holding Co. raised its holdings by 250.0% in the third quarter, now owning 700 shares valued at approximately $33,000 after adding 500 shares.

Binnacle Investments Inc. also invested in Occidental during the same period, with a stake assessed at around $35,000. Hantz Financial Services Inc. increased its holdings by a remarkable 1,193.9% in the second quarter, owning 854 shares valued at $36,000 after an additional purchase of 788 shares. Additionally, GoalVest Advisory LLC made a new investment in the company worth approximately $38,000. Currently, institutional investors hold approximately 88.70% of Occidental Petroleum’s stock.

Occidental Petroleum Corporation operates as an international energy company primarily engaged in the exploration, production, and marketing of oil and natural gas. The firm has substantial operations in the United States, particularly in the Permian Basin, and maintains exploration activities in various international regions, including the Middle East, Latin America, and Africa.