Zacks Investment Research Upgrades Cheniere Energy (LNG) to “Hold”
Zacks Investment Research upgraded shares of Cheniere Energy (NYSEAMERICAN:LNG) from a strong sell rating to a hold rating in a research note released on Monday morning.
According to Zacks, “Cheniere Energy – with its first-mover advantage in exporting liquefied natural gas from the U.S. – is primed for significant revenue and earnings growth. The company is the only LNG exporter of the U.S. and plans to turn the natural gas glut into export revolution, currently exporting to over 20 countries. Further, Cheniere Energy's long term contracts protect its future income and lowers exposure to commodity price fluctuations, while offering excellent cash flow visibility. The company's recent gas supply deals with Poland, Lithuania and South Korea is likely to boost its revenue growth trajectory in the coming years. However, setting up natural gas liquefaction plants is a costly affair that requires high capital spending. This has translated into a huge debt burden for the company, thereby deteriorating its leverage and credit metrics. Therefore, we take a cautious stance on the prospects of the stock.”
Several other equities research analysts have also recently issued reports on LNG. Stifel Nicolaus assumed coverage on shares of Cheniere Energy in a research report on Thursday, January 4th. They set a buy rating and a $65.00 price objective for the company. Cowen assumed coverage on shares of Cheniere Energy in a research report on Friday, November 17th. They set a market perform rating and a $56.00 price objective for the company. Citigroup raised their price objective on shares of Cheniere Energy from $57.00 to $59.00 and gave the stock a buy rating in a research report on Thursday, November 16th. BidaskClub upgraded shares of Cheniere Energy from a sell rating to a hold rating in a research report on Saturday, November 4th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Cheniere Energy from $36.00 to $35.00 and set an overweight rating for the company in a research report on Wednesday, November 1st. One research analyst has rated the stock with a sell rating, four have issued a hold rating and nine have assigned a buy rating to the stock. The company currently has a consensus rating of Buy and a consensus target price of $54.46.
Cheniere Energy (NYSEAMERICAN LNG) traded down $0.60 during trading hours on Monday, hitting $53.94. 1,764,449 shares of the stock traded hands, compared to its average volume of 2,345,450. The stock has a market capitalization of $13,120.00, a P/E ratio of -30.65 and a beta of 1.81. Cheniere Energy has a 12-month low of $40.36 and a 12-month high of $56.14.
Cheniere Energy (NYSEAMERICAN:LNG) last posted its quarterly earnings results on Tuesday, November 14th. The energy company reported ($1.24) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.16) by ($1.08). The firm had revenue of $1.40 billion for the quarter, compared to analysts’ expectations of $1.27 billion. The company’s quarterly revenue was up 201.7% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.41) earnings per share.
In other Cheniere Energy news, Director Vicky A. Bailey sold 5,800 shares of Cheniere Energy stock in a transaction dated Tuesday, January 2nd. The shares were sold at an average price of $54.44, for a total transaction of $315,752.00. Following the completion of the sale, the director now directly owns 35,765 shares in the company, valued at $1,947,046.60. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David B. Kilpatrick sold 20,000 shares of Cheniere Energy stock in a transaction dated Friday, November 17th. The shares were sold at an average price of $49.15, for a total transaction of $983,000.00. Following the sale, the director now owns 2,464 shares of the company’s stock, valued at $121,105.60. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 45,800 shares of company stock valued at $2,299,152.
Institutional investors and hedge funds have recently made changes to their positions in the business. Tower Research Capital LLC TRC acquired a new stake in shares of Cheniere Energy during the second quarter valued at about $121,000. Van ECK Associates Corp increased its position in shares of Cheniere Energy by 11.7% during the second quarter. Van ECK Associates Corp now owns 2,987 shares of the energy company’s stock valued at $145,000 after acquiring an additional 312 shares during the last quarter. Atlantic Trust LLC acquired a new stake in shares of Cheniere Energy during the second quarter valued at about $175,000. Fiduciary Trust Co. acquired a new stake in shares of Cheniere Energy during the second quarter valued at about $188,000. Finally, Shamrock Asset Management LLC acquired a new stake in shares of Cheniere Energy during the third quarter valued at about $196,000.
Cheniere Energy Company Profile
Cheniere Energy, Inc (Cheniere) is an energy company primarily engaged in liquefied natural gas (LNG)-related businesses. The Company operates through two segments: LNG terminal business, and LNG and natural gas marketing business. Its LNG terminal segment consists of the Sabine Pass and Corpus Christi LNG terminals.
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