Zacks Investment Research downgraded shares of Cheniere Energy (NYSEAMERICAN:LNG) from a hold rating to a sell rating in a research note released on Wednesday.
According to Zacks, “With a string of losses likely to dampen investor confidence, we are recalibrating our investment thesis on Cheniere Energy to Sell from Hold. An expansion stage company with high cash outflow and limited predictability, we rate Cheniere Energy as a risky bet going forward. The company is in the business of setting up natural gas liquefication plants, which is a costly affair that requires high capital spending. This has translated into a huge debt burden for the company – currently at nearly $25 billion – and has raised its risk profile. What's more, Cheniere's leveraged balance sheet is unlikely to improve in the next few years due to low internally generated cash flow. Considering these headwinds, we expect Cheniere Energy to perform below the industry, which gives investors little reason to hold the stock.”
LNG has been the subject of several other reports. Stifel Nicolaus started coverage on shares of Cheniere Energy in a research note on Thursday, January 4th. They set a buy rating and a $65.00 price objective for the company. Scotiabank reissued a buy rating and set a $52.00 price objective on shares of Cheniere Energy in a research note on Wednesday, October 25th. Citigroup boosted their price objective on shares of Cheniere Energy from $57.00 to $59.00 and gave the company a buy rating in a research note on Thursday, November 16th. BidaskClub raised shares of Cheniere Energy from a sell rating to a hold rating in a research note on Saturday, November 4th. Finally, Cowen started coverage on shares of Cheniere Energy in a research note on Friday, November 17th. They set a market perform rating and a $56.00 price objective for the company. Two analysts have rated the stock with a sell rating, three have given a hold rating and nine have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus target price of $54.79.
Cheniere Energy (NYSEAMERICAN LNG) opened at $55.46 on Wednesday. The firm has a market capitalization of $13,180.00, a price-to-earnings ratio of -31.51 and a beta of 1.81. Cheniere Energy has a twelve month low of $40.36 and a twelve month high of $56.80.
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. The business’s revenue was up 201.7% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.41) EPS.
In other news, Director Vicky A. Bailey sold 5,800 shares of the company’s stock in a transaction dated Tuesday, January 2nd. The shares were sold at an average price of $54.44, for a total value of $315,752.00. Following the sale, the director now owns 35,765 shares in the company, valued at approximately $1,947,046.60. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Nuno Brandolini sold 20,000 shares of the company’s 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 sale, the director now owns 232,271 shares in the company, valued at approximately $11,618,195.42. The disclosure for this sale can be found here. Over the last three months, insiders sold 45,800 shares of company stock valued at $2,299,152.
Several institutional investors have recently modified their holdings of the company. Tower Research Capital LLC TRC acquired a new stake in Cheniere Energy during the second quarter worth about $121,000. Van ECK Associates Corp raised its stake in Cheniere Energy by 11.7% during the second quarter. Van ECK Associates Corp now owns 2,987 shares of the energy company’s stock worth $145,000 after acquiring an additional 312 shares during the period. Atlantic Trust LLC acquired a new stake in Cheniere Energy during the second quarter worth about $175,000. Shamrock Asset Management LLC acquired a new stake in Cheniere Energy during the third quarter worth about $196,000. Finally, WINTON GROUP Ltd acquired a new stake in Cheniere Energy during the second quarter worth about $203,000.
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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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