Piper Sandler had noted that the exploration & production investing environment remains challenging coming out of the second quarter, marked by a volatile oil price environment with increased geopolitical risk offset by higher OPEC+ supplies.
Occidental Petroleum Corp (OXY) witnessed a 40% surge in retail user message count on Stocktwits in the last month, heading into earnings later on Wednesday, with investors and analysts focusing on the oil price environment and heightened geopolitical risk now clouding major company results.
Retail sentiment improved to ‘neutral’ from ‘bearish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits.
Shares of Occidental were up 1.5% in early trading on Wednesday and have declined 12% so far this year.
In July, Piper Sandler raised its price target to $50 from $48 and maintained a ‘neutral,’ according to TheFly. The brokerage added that the exploration & production investing environment remains challenging coming out of the second quarter, marked by a volatile oil price environment with increased geopolitical risk offset by higher OPEC+ supplies.
While strong secular gas-demand trends have been offset by stubbornly high supplies and substantial inventory builds, Piper Sandler added.
A user on Stocktwits said that earnings and guidance of Occidental are expected to go well given favorable conditions for the company.
Occidental is expected to post net revenue of $6.30 billion in the second quarter and earnings per share (EPS) of $0.38, according to data from Fiscal AI.
Raymond James had noted in July that while plenty of macro uncertainty remains, the oil price has, for the time being, recovered, and it expects to see minimal activity changes from management teams as a result.
Occidental stock has declined by over 22% in the last 12 months.
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