Cheniere Energy (NYSEAMERICAN:LNG) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Friday.
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.”
A number of other research firms have also issued reports on LNG. Stifel Nicolaus began coverage on shares of Cheniere Energy in a research note on Thursday, January 4th. They issued a “buy” rating and a $65.00 target price on the stock. JPMorgan Chase & Co. decreased their price target on shares of Cheniere Energy from $36.00 to $35.00 and set an “overweight” rating on the stock in a research report on Wednesday, November 1st. Cowen began coverage on shares of Cheniere Energy in a research report on Friday, November 17th. They issued a “market perform” rating and a $56.00 price target on the stock. Citigroup raised their price target 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. Finally, Barclays restated a “buy” rating and issued a $62.00 price target on shares of Cheniere Energy in a research report on Friday, January 19th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and nine have assigned a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $55.88.
Cheniere Energy (NYSEAMERICAN:LNG) last issued 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 business had revenue of $1.40 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the previous year, the business earned ($0.41) EPS. The business’s revenue was up 201.7% compared to the same quarter last year.
In related news, Director Nuno Brandolini sold 20,000 shares of Cheniere Energy stock in a transaction dated Friday, December 15th. The shares were sold at an average price of $50.02, for a total transaction of $1,000,400.00. Following the completion of the transaction, the director now directly owns 232,271 shares of the company’s stock, valued at approximately $11,618,195.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 transaction, the director now directly owns 35,765 shares of the company’s stock, valued at $1,947,046.60. The disclosure for this sale can be found here. Insiders have sold a total of 45,800 shares of company stock valued at $2,299,152 over the last ninety days.
A number of hedge funds have recently made changes to their positions in LNG. Sii Investments Inc. WI raised its stake in shares of Cheniere Energy by 0.7% in the 2nd quarter. Sii Investments Inc. WI now owns 9,424 shares of the energy company’s stock valued at $461,000 after purchasing an additional 66 shares in the last quarter. Raymond James Financial Services Advisors Inc. raised its holdings in shares of Cheniere Energy by 0.5% during the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 14,532 shares of the energy company’s stock valued at $708,000 after purchasing an additional 79 shares in the last quarter. Kingfisher Capital LLC raised its holdings in shares of Cheniere Energy by 0.4% during the 2nd quarter. Kingfisher Capital LLC now owns 34,644 shares of the energy company’s stock valued at $1,688,000 after purchasing an additional 155 shares in the last quarter. Public Employees Retirement System of Ohio raised its holdings in shares of Cheniere Energy by 0.6% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 91,167 shares of the energy company’s stock valued at $4,441,000 after purchasing an additional 586 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of Cheniere Energy by 8.4% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 9,492 shares of the energy company’s stock valued at $462,000 after purchasing an additional 733 shares in the last quarter.
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About Cheniere Energy
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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