Cheniere Energy (NYSE:LNG) Shares Gap Down - Here's Why

Key Points

• Shares gapped down Wednesday, opening at $261.00 after a $284.27 close and last trading around $267.35 on roughly 1.37 million shares.
• Analysts are mostly bullish—MarketBeat shows a consensus rating of "Moderate Buy" with an average target of $291.88 after multiple recent price-target raises (e.g., BofA $322, Morgan Stanley $313).
• Cheniere reported a material EPS beat ($10.68 vs. $3.90 estimate) and the board authorized a $10 billion share-repurchase program (up to ~21.1% of shares), while maintaining a modest $2.22 annual dividend (0.8% yield).

Shares of Cheniere Energy, Inc. (NYSE:LNG - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $284.27, but opened at $261.00. Cheniere Energy shares last traded at $267.3540, with a volume of 1,372,475 shares traded.

Analysts Set New Price Targets

A number of research analysts have weighed in on LNG shares. TD Cowen upped their target price on Cheniere Energy from $250.00 to $255.00 and gave the stock a "buy" rating in a report on Friday, February 27th. Bank of America upped their target price on Cheniere Energy from $296.00 to $322.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Morgan Stanley upgraded Cheniere Energy from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $236.00 to $313.00 in a report on Monday, March 23rd. BMO Capital Markets upped their target price on Cheniere Energy from $265.00 to $306.00 and gave the stock an "outperform" rating in a report on Monday, March 23rd. Finally, Barclays upped their target price on Cheniere Energy from $259.00 to $271.00 and gave the stock an "overweight" rating in a report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Cheniere Energy has an average rating of "Moderate Buy" and a consensus target price of $291.88.

Cheniere Energy Price Performance

The company has a current ratio of 0.94, a quick ratio of 0.81 and a debt-to-equity ratio of 1.74. The company has a market cap of $56.90 billion, a PE ratio of 11.14 and a beta of 0.14. The firm has a 50 day moving average of $245.92 and a two-hundred day moving average of $222.47.

Cheniere Energy (NYSE:LNG - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The energy company reported $10.68 earnings per share for the quarter, topping the consensus estimate of $3.90 by $6.78. The company had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.48 billion. Cheniere Energy had a return on equity of 32.04% and a net margin of 26.68%.The firm's quarterly revenue was up 22.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $4.33 EPS. Research analysts predict that Cheniere Energy, Inc. will post 11.69 earnings per share for the current fiscal year.

Cheniere Energy Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 6th were paid a $0.555 dividend. The ex-dividend date was Friday, February 6th. This represents a $2.22 annualized dividend and a dividend yield of 0.8%. Cheniere Energy's dividend payout ratio is presently 9.14%.

Cheniere Energy announced that its board has authorized a stock repurchase program on Thursday, February 26th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the energy company to reacquire up to 21.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Cheniere Energy

In related news, CFO Zach Davis sold 29,000 shares of the company's stock in a transaction that occurred on Monday, March 30th. The stock was sold at an average price of $300.00, for a total value of $8,700,000.00. Following the sale, the chief financial officer owned 87,146 shares in the company, valued at $26,143,800. This represents a 24.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Sean N. Markowitz sold 22,246 shares of the company's stock in a transaction that occurred on Thursday, March 26th. The shares were sold at an average price of $290.98, for a total value of $6,473,141.08. Following the completion of the transaction, the executive vice president directly owned 64,000 shares in the company, valued at $18,622,720. This trade represents a 25.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.26% of the company's stock.

Hedge Funds Weigh In On Cheniere Energy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LNG. Salomon & Ludwin LLC bought a new position in Cheniere Energy in the 3rd quarter valued at approximately $25,000. Strive Financial Group LLC bought a new position in Cheniere Energy in the 4th quarter valued at approximately $25,000. Kohmann Bosshard Financial Services LLC bought a new position in Cheniere Energy in the 4th quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd bought a new position in Cheniere Energy in the 3rd quarter valued at approximately $27,000. Finally, Accordant Advisory Group Inc bought a new position in Cheniere Energy in the 4th quarter valued at approximately $29,000. 87.26% of the stock is owned by institutional investors.

Cheniere Energy Company Profile

Cheniere Energy, Inc is a U.S.-based energy company that develops, owns and operates liquefied natural gas (LNG) infrastructure and markets LNG to global customers. The company's core activities include natural gas liquefaction, long‑term and short‑term LNG sales and marketing, and the associated midstream services required to move gas from production basins to international markets. Cheniere focuses on converting domestic natural gas into LNG for export, providing a bridge between North American supply and overseas demand.

Cheniere's principal operating assets are large-scale LNG export terminals located on the U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.