DT Midstream (NYSE:DTM) Raised to Equal Weight at Morgan Stanley

Key Points

• Morgan Stanley upgraded DT Midstream from "underweight" to "equal weight" and set a $165 price target, implying roughly a 26.4% upside from the prior close.
• Analyst coverage is mixed—six Buy, six Hold and one Sell—with an average target price of $144.91 and an average rating of "Hold."
• DT Midstream's latest quarter showed EPS $1.08 (missed consensus $1.11) and revenue of $317M (vs. $320.07M), though net margin was strong at 35.48%; the CFO also bought shares, indicating some insider confidence.

DT Midstream (NYSE:DTM - Get Free Report) was upgraded by investment analysts at Morgan Stanley from an "underweight" rating to an "equal weight" rating in a note issued to investors on Wednesday, Marketbeat Ratings reports. The brokerage presently has a $165.00 target price on the stock. Morgan Stanley's price objective would suggest a potential upside of 26.40% from the company's previous close.

DTM has been the subject of a number of other reports. UBS Group increased their target price on shares of DT Midstream from $128.00 to $152.00 and gave the stock a "buy" rating in a report on Friday, February 20th. The Goldman Sachs Group increased their target price on shares of DT Midstream from $111.00 to $127.00 and gave the stock a "sell" rating in a report on Monday. Mizuho increased their target price on shares of DT Midstream from $108.00 to $129.00 and gave the stock a "neutral" rating in a report on Tuesday, February 17th. JPMorgan Chase & Co. increased their target price on shares of DT Midstream from $126.00 to $142.00 and gave the stock a "neutral" rating in a report on Thursday, March 5th. Finally, Jefferies Financial Group set a $148.00 price objective on shares of DT Midstream and gave the stock a "buy" rating in a report on Friday, February 20th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $144.91.

DT Midstream Stock Performance

DT Midstream stock opened at $130.53 on Wednesday. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.68. The firm has a 50-day moving average of $135.70 and a 200-day moving average of $123.83. The firm has a market cap of $13.32 billion, a P/E ratio of 30.29, a P/E/G ratio of 2.73 and a beta of 0.75. DT Midstream has a 1-year low of $94.15 and a 1-year high of $143.67.

DT Midstream (NYSE:DTM - Get Free Report) last posted its earnings results on Thursday, February 19th. The company reported $1.08 earnings per share for the quarter, missing analysts' consensus estimates of $1.11 by ($0.03). The firm had revenue of $317.00 million for the quarter, compared to analysts' expectations of $320.07 million. DT Midstream had a return on equity of 9.13% and a net margin of 35.48%.During the same quarter in the prior year, the company posted $0.94 earnings per share. Sell-side analysts expect that DT Midstream will post 4.63 EPS for the current year.

Insider Buying and Selling

In related news, CFO Jeffrey A. Jewell acquired 185 shares of the stock in a transaction on Wednesday, February 25th. The stock was acquired at an average cost of $136.33 per share, for a total transaction of $25,221.05. Following the completion of the acquisition, the chief financial officer directly owned 89,583 shares of the company's stock, valued at approximately $12,212,850.39. This represents a 0.21% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.54% of the stock is owned by company insiders.

Institutional Trading of DT Midstream

Institutional investors and hedge funds have recently bought and sold shares of the stock. 59 North Capital Management LP lifted its holdings in shares of DT Midstream by 49.0% during the third quarter. 59 North Capital Management LP now owns 3,074,081 shares of the company's stock valued at $347,556,000 after purchasing an additional 1,010,965 shares during the last quarter. Norges Bank purchased a new position in shares of DT Midstream during the fourth quarter valued at approximately $115,715,000. Merewether Investment Management LP lifted its holdings in shares of DT Midstream by 192.4% during the third quarter. Merewether Investment Management LP now owns 1,000,600 shares of the company's stock valued at $113,128,000 after purchasing an additional 658,400 shares during the last quarter. CIBC Bancorp USA Inc. purchased a new position in shares of DT Midstream during the third quarter valued at approximately $43,347,000. Finally, Holocene Advisors LP lifted its holdings in shares of DT Midstream by 117.7% during the third quarter. Holocene Advisors LP now owns 554,059 shares of the company's stock valued at $62,642,000 after purchasing an additional 299,609 shares during the last quarter. 81.53% of the stock is currently owned by hedge funds and other institutional investors.

About DT Midstream

DT Midstream Inc NYSE: DTM is a midstream energy company that owns and operates infrastructure for gathering, processing and treating hydrocarbons and produced water. Its core business activities encompass natural gas gathering, cryogenic processing, natural gas liquids (NGL) fractionation, and produced-water handling services. These integrated operations enable the company to capture and transport multiple hydrocarbon streams from wellhead to market and to provide essential water management solutions.

The company’s asset footprint is concentrated in the Delaware Basin in West Texas and southeastern New Mexico, where it serves a diverse range of exploration and production customers.

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