Range Resources: A Look at Its Institutional Holdings

Range Resources (RRC) reported adjusted EPS of -$0.07 in the third quarter. Analysts’ consensus estimate for its EPS was -$0.10. In the third quarter of 2018, its EPS were $0.26. Let’s talk about institutional investor activity in RRC in the third quarter of 2019.

In the third quarter, the company operated with a production mix of 69.6% natural gas and 27.6% NGLs (natural gas liquids). Lower natural gas prices could be an important factor driving its earnings’ decline year-over-year. Last month, Capital One and ScotiaBank reduced their target prices on RRC by $3 and $1, respectively, to $10 and $5. Analysts’ mean price target suggests a potential upside of 61.4% from its last closing level.

Top institutional buyers of Range Resources

In the third quarter, BlackRock added around 6.6 million RRC shares, making it the stock’s largest institutional buyer. It was RRC’s second-largest institutional holder at the end of the quarter. In the second quarter, it was the third-largest institutional holder.

State Street added 4.7 million RRC shares and was the second-largest institutional buyer in the third quarter. Four out of the top five institutional investors added RRC shares to their portfolios.

In the third quarter, Dimensional Fund, the fifth-largest institutional holder, added just 34,900 RRC shares. It also reduced its holdings in ExxonMobil (XOM). The article Dimensional Fund Advisors’ Major Holdings in Q3 highlights its top holdings.

Moreover, in the third quarter, Wellington Management also increased its stake in RRC by 1.1 million shares. To find out more about Wellington’s holdings, read Wellington Management: Analyzing Its Top Holdings.

Top institutional sellers

In the third quarter, SailingStone Capital Partners was the largest institutional holder of Range Resources. It sold 10.2 million RRC shares and reduced its holdings by 25%. It was the largest institutional seller. RRC constituted 29.3% of its total portfolio of publicly traded securities, its largest holding.

In the third quarter, Antero Resources (AR) was SailingStone Capital’s third-largest holding. Like RRC, AR also operates with a production mix of more than 60% in natural gas. SailingStone reduced its stake in AR by 4%. The other top sales of SailingStone Capital in the energy sector were SRC Energy (SRCI) and Laredo Petroleum (LPI).

In the third quarter, Key Group Holdings exited Range Resources. Moreover, it was the second-largest institutional seller. In the second quarter, RRC constituted approximately 4.7% of its total portfolio of publicly traded securities. Key Group’s other top energy sells were WPX Energy (WPX), Pioneer Natural Resources (PXD), and Devon Energy (DVN). Read Upstream Stocks: The Top Movers of 2019 to learn more about Devon Energy.

In the third quarter, Concho Resources (CXO) and EQT Corporation (EQT) were among Key Group’s top five buys. CXO is a leading producer of oil in the Permian Basin. EQT operates with a production mix of around 95% in natural gas.

To learn more about institutional investors’ stances in other upstream stocks, read Chesapeake: Gauging Institutional Investors’ Stance in Q3.