Should Investors Consider Selling Vanguard Natural Resources (NASDAQ:VNR) Shares Now That Stifel Downgraded The Company?


Vanguard Natural Resources (NASDAQ:VNR) Receives a Downgrade

The stock rating of Vanguard Natural Resources (NASDAQ:VNR) was lowered by investment advisers at Stifel from a the old Hold rating to a more updated Sell in a note revealed to investors on 7 December. The brokerage firm presently has a $3.0 target on shares, suggesting a possible downside of -32.74%.

From a total of 11 analysts covering Vanguard Natural Resources (NASDAQ:VNR) stock, 7 rate it a ”Buy”, 0 a “Sell”, and 6 a ”Hold”. This means that 54% of the ratings are positive. The highest target price is $14 while the lowest target price is $7.5. The mean of all analyst targets is $10.36 with a 195.29% above today’s ($4.46) stock price. Vanguard Natural Resources was the topic of 9 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. UBS downgraded shares on October 27 to “Neutral” rating. Raymond James maintained shares with “Outperform” rating and $13 target share price in a report from a September 1. FBR Capital maintained VNR stock in a recent report from October 12 with “Outperform” rating. RBC Capital Markets maintained the rating on August 6. RBC Capital Markets has a “Sector Perform” rating and a $12 price target on shares. Finally, Barclays Capital maintained the stock with “Equal Weight” rating in a report issued on a September 30.

The stock decreased 17.10% or $0.92 on December 4, striking $4.46. Approximately shares of stock traded hands. Vanguard Natural Resources, LLC (NASDAQ:VNR) has declined 73.53% since May 4, 2015 and is downtrending. It has underperformed by 72.45% the S&P500.

The overall sentiment of institutions has decreased to 0.77 in Q2 2015. Its down 0.75, from 1.52 in 2015Q2. The ratio worsened, as 25 institutions have sold all the shares of Vanguard Natural Resources, LLC that they owned while 41 funds have taken shares off the table. 16 funds have purchased shares for the first time while 35 added to their positions. These institutions now hold 11.78 million shares or 24.40% more than the 9.47 million shares they owned in 2015Q2.

The Fund Gilman Hill Asset Management Llc currently is holding shares equating to 0.57% of its total portfolio in Vanguard Natural Resources, LLC representing a total of 144,940 shares. Another fund,Creegan & Nassoura Financial Group Llc, is holding a total of 64,841 shares equating to 0.56% of their holdings. Additionally, Cushing Asset Management Lp has a 1.44 million share stake in Vanguard Natural Resources, LLC which represents 0.42% of their total portfolio. The Fund, Diligent Investors Llc, based out of California, has also built up a stake in the stock, which represents a total of 0.26% of their total portfolio. Finally Corecommodity Management Llc, a fund which is based in the state of Connecticut reported a total holdings of 35,077 shares.

Vanguard Natural Resources, LLC is a limited liability firm focused on the acquisition and development of oil and natural gas properties in the United States. The company has a market cap of $581.87 million. Through its operating subsidiaries, the Company owns properties, and oil and natural gas reserves primarily located in nine operating basins. It currently has negative earnings. The Company’s operating basins include Green River Basin in Wyoming; the Piceance Basin in Colorado; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana and Mississippi, and the Big Horn Basin in Wyoming and Montana.

According to Zacks Investment Research, “Vanguard is an independent natural gas and oil company, focused on the acquisition, exploitation and development of natural gas and oil properties. Vanguard’s assets consist primarily of producing and non-producing natural gas reserves located in the southern portion of the Appalachian Basin, primarily in southeast Kentucky and northeast Tennessee.” Get a free copy of the Zacks research report on Vanguard Natural Resources, LLC (VNR).