Nustar Energy L.P. (NS) – Research Analysts’ Recent Ratings Updates
Several brokerages have updated their recommendations and price targets on shares of Nustar Energy L.P. (NYSE: NS) in the last few weeks:
- 8/7/2017 – Nustar Energy L.P. was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “strong sell” rating. According to Zacks, “Considering NuStar Energy's weak distribution coverage and high leverage, we have turned bearish on the partnership. Crude's historic decline has undoubtedly impacted the demand for transportation and storage services. With operations likely to generate weak cash and management not expected to cover distribution until late 2018, NuStar's future looks bleak. In fact, the distribution coverage ratio dipped to a dismal 0.59x in the second quarter – down from 1.09x a year ago. While the midstream MLP has underperformed the broader industry across the past three- and 6-month periods, its debt-to-equity ratio of over 2 is almost double when compared to the industry average. In the wake of weak industry sentiment and apprehensions of more punishing times ahead with future cash flows drying up, we see little reason for investors to hold the stock.”
- 8/3/2017 – Nustar Energy L.P. had its “hold” rating reaffirmed by analysts at Stifel Nicolaus. They now have a $46.00 price target on the stock.
- 8/2/2017 – Nustar Energy L.P. was downgraded by analysts at BidaskClub from a “sell” rating to a “strong sell” rating.
- 7/31/2017 – Nustar Energy L.P. had its “buy” rating reaffirmed by analysts at UBS AG. They now have a $53.00 price target on the stock, down previously from $56.00.
- 7/27/2017 – Nustar Energy L.P. was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating.
- 7/19/2017 – Nustar Energy L.P. was upgraded by analysts at Zacks Investment Research from a “strong sell” rating to a “hold” rating. According to Zacks, “NuStar has successfully weathered crude's historic decline through its large and diverse asset portfolio that provides highly certain cash flows. Other positive attributes include its investment grade rating and strong track record for distribution growth. NuStar’s fee-based transportation and storage assets make it less susceptible to commodity price weakness. Further, the partnership has recently acquired Dallasbased private pipeline company, Navigator Energy Services, which marks the partnership’s entry into the Permian Basin and is likely to boost its revenue. However, we believe that MLP valuations will be largely disconnected from business fundamentals as long as the hoopla over crude prices continues. We are also concerned about the partnership’s high leverage. As such, we see NuStar units performing in line with the broader market.”
- 7/17/2017 – Nustar Energy L.P. was downgraded by analysts at Wells Fargo & Company from an “outperform” rating to a “market perform” rating.
- 6/30/2017 – Nustar Energy L.P. had its “hold” rating reaffirmed by analysts at Stifel Nicolaus. They now have a $46.00 price target on the stock.
- 6/29/2017 – Nustar Energy L.P. was upgraded by analysts at BidaskClub from a “strong sell” rating to a “sell” rating.
- 6/27/2017 – Nustar Energy L.P. was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “strong sell” rating. According to Zacks, “Considering NuStar Energy's high leverage and the Fuels Marketing segment's continued underperformance, we have turned bearish on the publicly traded partnership. While the midstream MLP has underperformed the Zacks categorized 'Oil/Gas Production Pipeline MLP' industry across the past three- and 6 month periods, its debt-to-equity ratio of around 2 is almost double when compared to the industry average. The ongoing weakness in NuStar's fuels marketing business points to its struggles in propping up the unit's depressed gross margins. High operating costs and lower volumes in the Pipeline segment provide further downside. We also need to factor in the possibility of flat distributions until at least 2018. Lack of growth catalysts remain another major liability. Given these headwinds, we see NS as a risky bet that ordinary investors should exit.”
- 6/23/2017 – Nustar Energy L.P. was downgraded by analysts at BidaskClub from a “sell” rating to a “strong sell” rating.
- 6/14/2017 – Nustar Energy L.P. was upgraded by analysts at BidaskClub from a “strong sell” rating to a “sell” rating.
Shares of Nustar Energy L.P. (NS) traded up 0.8368% during mid-day trading on Monday, reaching $42.1397. The company’s stock had a trading volume of 102,475 shares. The stock has a 50 day moving average of $45.70 and a 200-day moving average of $49.02. The stock has a market cap of $3.92 billion, a P/E ratio of 59.2682 and a beta of 1.38. Nustar Energy L.P. has a one year low of $41.61 and a one year high of $55.64.
Nustar Energy L.P. (NYSE:NS) last posted its quarterly earnings results on Friday, July 28th. The pipeline company reported $0.05 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.33 by $0.28. The business had revenue of $435.49 million during the quarter, compared to analyst estimates of $500.83 million. Nustar Energy L.P. had a return on equity of 8.84% and a net margin of 6.77%. The business’s revenue was down .5% on a year-over-year basis. During the same quarter last year, the firm earned $0.52 EPS. On average, equities research analysts expect that Nustar Energy L.P. will post $1.26 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, August 11th. Shareholders of record on Monday, August 7th will be paid a $1.095 dividend. The ex-dividend date of this dividend is Thursday, August 3rd. This represents a $4.38 annualized dividend and a dividend yield of 10.48%. Nustar Energy L.P.’s dividend payout ratio (DPR) is 608.33%.
In other news, Director Jesse D. Bates bought 1,000 shares of the stock in a transaction that occurred on Tuesday, August 1st. The stock was purchased at an average price of $43.34 per share, for a total transaction of $43,340.00. Following the completion of the purchase, the director now owns 7,818 shares in the company, valued at approximately $338,832.12. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director William Grady Rosier bought 5,000 shares of the stock in a transaction that occurred on Friday, May 19th. The shares were purchased at an average price of $46.40 per share, with a total value of $232,000.00. The disclosure for this purchase can be found here. In the last 90 days, insiders acquired 7,000 shares of company stock valued at $318,150. Insiders own 4.10% of the company’s stock.
NuStar Energy L.P. is engaged in the transportation of petroleum products and anhydrous ammonia; the terminalling and storage of petroleum products, and the marketing of petroleum products. The Company’s segments include pipeline, storage and fuels marketing. The pipeline segment consists of the transportation of refined petroleum products, crude oil and anhydrous ammonia.
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