Ferrellgas Partners’s Neutral Rating Reaffirmed at Zacks (FGP)
Ferrellgas Partners (NYSE:FGP)‘s stock had its “neutral” rating reaffirmed by Zacks in a report released on Tuesday. They currently have a $28.00 price objective on the stock. Zacks‘s price objective indicates a potential upside of 5.86% from the stock’s previous close.
Zacks’ analyst wrote, “Ferrellgas Partners’ earnings per unit in the third quarter of fiscal 2014 missed the Zacks Consensus Estimate. As the heating season was primarily concentrated in third quarter, failure of other providers helped the partnership to add new customers. However, Ferrellgas Partners failed to surpass the Zacks Consensus Estimate in the last four quarters. Rising input costs are eating into the margins of the partnership and affecting profitability. The partnership has the capability to turn the tide with the contribution from the acquired assets, but going by present performance it will be some time before it actually starts to exceed market expectations. Besides, over-dependence on a small number of propane suppliers and strong competition from other energy sources might pose further challenges for Ferrellgas Partners. Thus, we maintain our Neutral recommendation on the stock.”
A number of other analysts have also recently weighed in on FGP. Analysts at JPMorgan Chase & Co. reiterated an “underweight” rating on shares of Ferrellgas Partners in a research note on Tuesday. They now have a $21.00 price target on the stock, up previously from $20.00. Separately, analysts at Barclays raised their price target on shares of Ferrellgas Partners from $21.00 to $24.00 in a research note on Tuesday. They now have an “underweight” rating on the stock.
Shares of Ferrellgas Partners (NYSE:FGP) traded up 1.25% during mid-day trading on Tuesday, hitting $26.78. 120,571 shares of the company’s stock traded hands. Ferrellgas Partners has a 52-week low of $20.68 and a 52-week high of $27.86. The stock’s 50-day moving average is $25.94 and its 200-day moving average is $24.3. The company has a market cap of $2.121 billion and a price-to-earnings ratio of 41.01.
Ferrellgas Partners (NYSE:FGP) last issued its quarterly earnings data on Monday, June 9th. The company reported $0.57 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.66 by $0.09. The company had revenue of $722.10 million for the quarter, compared to the consensus estimate of $746.88 million. During the same quarter in the prior year, the company posted $0.56 earnings per share. The company’s quarterly revenue was up 19.8% on a year-over-year basis. On average, analysts predict that Ferrellgas Partners will post $1.05 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, June 13th. Investors of record on Friday, June 6th will be paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 7.56%. The ex-dividend date is Wednesday, June 4th.
Ferrellgas Partners, L.P. (NYSE:FGP) is a distributor of propane and related equipment and supplies to customers primarily in the United States and conduct its business as a single reportable operating segment.
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