D.A. Davidson Sells 32.8% of Coterra Energy Stake; Davis Opens $237M Position
D.A. Davidson & Co reduced its Coterra Energy stake by 32.8% to 90,072 shares, selling 43,996 shares in the third quarter. Davis Selected Advisers opened a $237 million position while Vanguard Group increased its holding by 3.1% to 95.21 million shares valued at $2.42 billion.
1. Institutional Ownership Adjustments
D.A. Davidson & Co. reduced its stake in Coterra Energy by 32.8% during the third quarter, selling 43,996 shares and ending the period with 90,072 shares valued at $2.13 million. Meanwhile, Davis Selected Advisers initiated a position worth approximately $237 million, Vanguard Group increased its holdings by 3.1% to 95.2 million shares (valued at $2.42 billion), Truist Financial expanded its stake by 165.3% to 4.21 million shares ($106.9 million), Charles Schwab Investment Management grew its position by 5.9% to 26.8 million shares ($680.2 million), and Kingstone Capital Partners Texas established a new position valued at $30.3 million. Hedge funds and institutional investors collectively own 87.92% of the company’s equity.
2. Third-Quarter Financial Results
For the third quarter, Coterra Energy reported earnings per share of $0.41, missing consensus estimates by $0.02, on revenue of $1.82 billion, slightly below the $1.83 billion forecast. Revenue rose 33.7% year-over-year, driven by higher commodity realizations and production volumes, while net margin stood at 23.25% and return on equity reached 11.23%. Year-ago quarterly EPS was $0.32, and analysts currently project full-year EPS of $1.54.
3. Balance Sheet and Valuation Metrics
At quarter-end, the company held a quick ratio of 0.98, a current ratio of 1.02 and maintained a conservative debt-to-equity ratio of 0.25. Market capitalization stands at $18.9 billion, with a price-to-earnings ratio of 11.44 and a price-earnings-growth ratio of 0.39. Share price has traded between $22.33 and $29.95 over the past 52 weeks, with 50-day and 200-day moving averages at $26.10 and $24.77 respectively. Beta is low at 0.36, underscoring limited sensitivity to broad market swings.
4. Dividend Policy and Analyst Consensus
The board declared a quarterly dividend of $0.22 per share, representing an annualized payout of $0.88 and a 3.5% yield, with a payout ratio of 40.6%. Record date was November 13 and payment was made November 26. Seventeen analysts rate the stock a Buy and seven a Hold, with a consensus price target of $32.86. Recent target revisions include cuts from Stephens (to $33.00), Susquehanna (to $31.00), Mizuho (to $33.00) and Wolfe Research (to $35.00), while Roth Capital reaffirmed a $27.00 target and a Buy recommendation.