Is Energen (NYSE:EGN) a Sell? What does UBS Think?


Why Has UBS Given Energen (NYSE:EGN) a $50 Price Target

Analysts at UBS have commenced coverage coverage on shares of Energen (NYSE:EGN) in analysts report sent to investors on 15 December. The investment house set “Neutral” rating on the $3.82 billion market cap company.

From a total of 24 analysts covering Energen Corporation (NYSE:EGN) stock, 15 rate it a ”Buy”, 0 a “Sell”, and 8 a ”Hold”. This means that 65% of the ratings are positive. The highest target price is $81 while the lowest target price is $53. The mean of all analyst targets is $68.46 with a 36.03% above today’s ($49.52) stock price. Energen Corporation was the topic of 20 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on December 9 with “Buy” rating. RBC Capital Markets initiated shares with “Sector Perform” rating and $63 target share price in a report from an October 30. Nomura initiated EGN stock in a recent report from December 3 with “Buy” rating. Citigroup maintained the rating on September 14. Citigroup has a “Neutral” rating and a $56 price target on shares. Finally, Topeka Capital Markets maintained the stock with “Buy” rating in a report issued on a November 6.

Approximately 927,241 shares of stock traded hands. Energen Corporation (NYSE:EGN) has declined 30.55% since May 12, 2015 and is downtrending. It has underperformed by 26.87% the S&P500.

The overall sentiment of institutions has decreased to 1.15 in Q2 2015. Its down 0.30, from 1.45 in 2015Q2. The ratio is negative, as 43 institutions have sold all the shares of Energen Corporation that they owned while 82 funds have taken shares off the table. 19 funds have purchased shares for the first time while 125 added to their positions. These institutions now hold 84.58 million shares or 20.82% more than the 70.00 million shares they owned in 2015Q2.

The Fund Mitchell Group Inc currently is holding shares equating to 4.25% of its total portfolio in Energen Corporation representing a total of 670,743 shares. Another fund,Encompass Capital Advisors Llc, is holding a total of 454,326 shares equating to 4.21% of their holdings. Additionally, Alta Advisers Ltd has a 45,703 share stake in Energen Corporation which represents 3.72% of their total portfolio. The Fund, Grt Capital Partners L.L.C., based out of Massachusetts, has also built up a stake in the stock, which represents a total of 2.98% of their total portfolio. Finally Corbyn Investment Management Inc Md, a fund which is based in the state of Maryland reported a total holdings of 175,431 shares.

Energen Corporation is an gas and oil exploration and production firm with headquarters in Birmingham, Alabama. The company has a market cap of $3.82 billion. The Firm has 1.1 billion barrels of oil-equivalent proved, probable, and possible reserves and another 2.2 billion barrels of oil-equivalent contingent resources. It currently has negative earnings. These all-domestic reserves and resources are located primarily in the Permian Basin in west Texas.

According to Zacks Investment Research, “ENERGEN CORP is a diversified energy holding company engaged in natural gas distribution and oil and natural gas exploration and production activities. The Corporation’s utility subsidiary, Alabama Gas Corporation, is the largest natural gas distribution utility in the State of Alabama. The Corporation’s oil and gas exploration and production activities are conducted by its subsidiary, Taurus Exploration, Inc. and its subsidiary.”