The stock of Occidental Petroleum Corp. (NYSE: OXY) has increased by 0.89 when compared to last closing price of 66.04.Despite this, the company has seen a loss of -3.45% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-20 that Occidental is the largest acreage holder in the prolific Permian Basin with significant unconventional and EOR operations. Occidental’s value is derived from proved reserves, and its enterprise value suggests it is trading close to fair value, but future growth potential is substantial. Occidental is well positioned to benefit from gradual production volume growth as well as mid-cycle oil price appreciation.
Is It Worth Investing in Occidental Petroleum Corp. (NYSE: OXY) Right Now?
Occidental Petroleum Corp. (NYSE: OXY) has a higher price-to-earnings ratio of 17.07x compared to its average ratio, The 36-month beta value for OXY is at 1.66. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 4 rating it as “overweight,” 15 as “hold,” and 1 as “sell.”
The public float for OXY is 883.57M, and currently, shorts hold a 5.58% of that float. The average trading volume for OXY on April 22, 2024 was 8.60M shares.
OXY’s Market Performance
The stock of Occidental Petroleum Corp. (OXY) has seen a -3.45% decrease in the past week, with a 4.45% rise in the past month, and a 18.10% gain in the past quarter. The volatility ratio for the week is 2.24%, and the volatility levels for the past 30 days are at 2.00% for OXY. The simple moving average for the past 20 days is -0.16% for OXY’s stock, with a 7.97% simple moving average for the past 200 days.
Analysts’ Opinion of OXY
Many brokerage firms have already submitted their reports for OXY stocks, with Scotiabank repeating the rating for OXY by listing it as a “Sector Outperform.” The predicted price for OXY in the upcoming period, according to Scotiabank is $90 based on the research report published on April 11, 2024 of the current year 2024.
Barclays, on the other hand, stated in their research note that they expect to see OXY reach a price target of $73. The rating they have provided for OXY stocks is “Equal Weight” according to the report published on April 10th, 2024.
HSBC Securities gave a rating of “Hold” to OXY, setting the target price at $65 in the report published on April 08th of the current year.
OXY Trading at 5.75% from the 50-Day Moving Average
After a stumble in the market that brought OXY to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.40% of loss for the given period.
Volatility was left at 2.00%, however, over the last 30 days, the volatility rate increased by 2.24%, as shares surge +4.22% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +15.64% upper at present.
During the last 5 trading sessions, OXY fell by -3.45%, which changed the moving average for the period of 200-days by +13.14% in comparison to the 20-day moving average, which settled at $66.87. In addition, Occidental Petroleum Corp. saw 11.59% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at OXY starting from BERKSHIRE HATHAWAY INC, who purchase 1,405,827 shares at the price of $56.81 back on Feb 05 ’24. After this action, BERKSHIRE HATHAWAY INC now owns 248,018,128 shares of Occidental Petroleum Corp., valued at $79,860,964 using the latest closing price.
BERKSHIRE HATHAWAY INC, the 10% Owner of Occidental Petroleum Corp., purchase 1,246,920 shares at $57.14 during a trade that took place back on Feb 02 ’24, which means that BERKSHIRE HATHAWAY INC is holding 246,612,301 shares at $71,252,500 based on the most recent closing price.
Stock Fundamentals for OXY
Current profitability levels for the company are sitting at:
- 0.35 for the present operating margin
- 0.47 for the gross margin
The net margin for Occidental Petroleum Corp. stands at 0.16. The total capital return value is set at 0.15. Equity return is now at value 15.49, with 6.20 for asset returns.
Based on Occidental Petroleum Corp. (OXY), the company’s capital structure generated 0.41 points at debt to capital in total, while cash flow to debt ratio is standing at 0.59. The debt to equity ratio resting at 0.69. The interest coverage ratio of the stock is 10.39.
Currently, EBITDA for the company is 13.95 billion with net debt to EBITDA at 1.51. When we switch over and look at the enterprise to sales, we see a ratio of 2.78. The receivables turnover for the company is 8.84for trailing twelve months and the total asset turnover is 0.38. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.92.
Conclusion
In conclusion, Occidental Petroleum Corp. (OXY) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
