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Why Institutional Investors Are Bullish on PXD

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PXD’s recent institutional activity

Capital World Investors and Fidelity Management & Research added a major position in Pioneer Natural Resources (PXD) during the second quarter, buying 1.5 million and 1.4 million shares, respectively. Meanwhile, Two Sigma Investments and Citadel were PXD’s biggest sellers, unloading 1.2 million and 0.8 million shares, respectively. Among PXD’s top five buyers and sellers, 1.4 million positions were added. Institutional investors’ bullishness towards PXD could be attributed to the following factors:

  • PXD’s exposure to the Permian basin increased following the completion of its RSP Permian merger.
  • The company achieved production at the higher end of its guidance of 312 Mboepd[1.thousand barrels of oil equivalent per day]–322 Mboepd.
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Top five holders

The Vanguard Group, Capital World Investors, State Street Global Advisors, BlackRock Institutional Trust, and Fidelity Management & Research are PXD’s top five institutional holders. The Vanguard Group, which remained PXD’s largest institutional investor in the second quarter, holds 7.6% of the company.

Analysts’ recommendations

Of the analysts covering PXD, 87.8% recommend “buy,” and 12.2% recommend “hold.” Mizuho last initiated coverage of PXD with a “buy” rating. Over the past six months, PXD has seen six rating updates: three coverage initiations, two upgrades, and one downgrade. PXD’s average target price of $244.80 implies a ~38% upside to its current price.

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