Is RSP Permian (NYSE:RSPP) a Sell? What does JP Morgan Think?


Why Has JP Morgan Given RSP Permian (NYSE:RSPP) a $30.00 Price Target

JP Morgan commenced coverage its coverage for RSP Permian (NYSE:RSPP), this morning Wednesday morning. The Investment firm found the stock of RSPP quite attractive and now has a TP of $30.00 with a key Neutral rating.

From a total of 26 analysts covering RSP Permian (NYSE:RSPP) stock, 18 rate it a ”Buy”, 0 a “Sell”, and 9 a ”Hold”. This means that 67% of the ratings are positive. The highest target price is $39 while the lowest target price is $24. The mean of all analyst targets is $33.23 with a 20.85% above today’s ($25.85) stock price. RSP Permian was the topic of 32 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Nomura initiated shares on December 3 with “Buy” rating. Canaccord Genuity initiated shares with “Hold” rating and $28 target share price in a report from an October 20. Wunderlich maintained RSPP stock in a recent report from November 4 with “Buy” rating. Roth Capital maintained the rating on October 13. Roth Capital has a “Buy” rating and a $31 price target on shares. Finally, Northland Capital maintained the stock with “Outperform” rating in a report issued on a November 3.

The stock increased 1.97% or $0.5 during the last trading session, striking $25.85. Approximately shares of stock traded hands. RSP Permian Inc (NYSE:RSPP) has declined 7.65% since May 6, 2015 and is downtrending. It has underperformed by 6.85% the S&P500.

The overall sentiment of institutions has decreased to 1.65 in Q2 2015. Its down 0.68, from 2.33 in 2015Q2. The ratio dived, as 33 institutions have sold all the shares of RSP Permian Inc that they owned while 29 funds have taken shares off the table. 25 funds have purchased shares for the first time while 77 added to their positions. These institutions now hold 79.29 million shares or 20.30% more than the 65.91 million shares they owned in 2015Q2.

The Fund Brenham Capital Management L.P. currently is holding shares equating to 13.06% of its total portfolio in RSP Permian Inc representing a total of 3.00 million shares. Another fund,Talara Capital Management Llc, is holding a total of 684,996 shares equating to 8.6% of their holdings. Additionally, Teachers Insurance & Annuity Association Of America has a 7.94 million share stake in RSP Permian Inc which represents 5.98% of their total portfolio. The Fund, Arosa Capital Management Lp, based out of New York, has also built up a stake in the stock, which represents a total of 4.4% of their total portfolio. Finally Alta Advisers Ltd, a fund which is based in the state of United Kingdom reported a total holdings of 131,223 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 20, 2015, shareholders of RSP Permian Inc have witnessed 0 insider buys, and a total of 10 selling transactions equating to a net activity of approximately $5.23 million . Huck William sold 4,000 shares worth approximately $106,148. Collins Ted Jr sold 126,000 shares worth approximately $3.46M. Daugbjerg Erik B sold 25,000 shares worth approximately $714,750. Pollard Tamara D. sold 40,000 shares worth approximately $1.14M. The company insider Production Opportunities Ii – L.P. sold 4.31M shares worth $120.12M.

RSP Permian, Inc. is an independent oil and natural gas Company focused on the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The company has a market cap of $2.56 billion. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, a sub-basin of the Permian Basin, primarily in the adjacent counties of Midland, Martin, Andrews, Dawson, Ector and Glasscock. It has 21.87 P/E ratio. As of December 31, 2014, the Company has participated in the completion of 92 horizontal wells, 45 of which the Company operated.

According to Zacks Investment Research, “RSP Permian, Inc. is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves primarily in the Permian Basin of West Texas. RSP Permian, Inc. is based in Dallas, United States.” Get a free copy of the Zacks research report on RSP Permian Inc (RSPP).