Capital Innovations LLC Invests $10.80 Million in Cheniere Energy, Inc. $LNG

Key Points

• Capital Innovations LLC opened a new position in Cheniere Energy during the fourth quarter, buying 55,533 shares worth about $10.8 million. The stake represents about 3.1% of the fund’s holdings and is its 11th largest position.
• Cheniere’s shares were up 3.8%, even as the company reported a large quarterly EPS miss of $16.65 versus the $4.25 estimate, though revenue came in above forecasts at $5.87 billion.
• The company has an active capital-return strategy, with a $10 billion share repurchase authorization approved in February and a quarterly dividend of $0.555 per share, while analysts currently maintain a consensus Buy rating.

Capital Innovations LLC acquired a new position in Cheniere Energy, Inc. (NYSE:LNG - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 55,533 shares of the energy company's stock, valued at approximately $10,795,000. Cheniere Energy comprises about 3.1% of Capital Innovations LLC's holdings, making the stock its 11th largest holding.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Ameriflex Group Inc. grew its position in shares of Cheniere Energy by 7.3% in the 3rd quarter. Ameriflex Group Inc. now owns 688 shares of the energy company's stock worth $162,000 after buying an additional 47 shares during the last quarter. Quest Investment Management LLC grew its position in shares of Cheniere Energy by 6.1% in the 3rd quarter. Quest Investment Management LLC now owns 875 shares of the energy company's stock worth $206,000 after buying an additional 50 shares during the last quarter. Hardy Reed LLC grew its position in shares of Cheniere Energy by 2.3% in the 3rd quarter. Hardy Reed LLC now owns 2,279 shares of the energy company's stock worth $536,000 after buying an additional 52 shares during the last quarter. Keel Point LLC grew its position in shares of Cheniere Energy by 5.2% in the 3rd quarter. Keel Point LLC now owns 1,111 shares of the energy company's stock worth $261,000 after buying an additional 55 shares during the last quarter. Finally, Waterfront Wealth Inc. grew its position in shares of Cheniere Energy by 3.9% in the 4th quarter. Waterfront Wealth Inc. now owns 1,486 shares of the energy company's stock worth $311,000 after buying an additional 56 shares during the last quarter. Hedge funds and other institutional investors own 87.26% of the company's stock.

Cheniere Energy Stock Up 3.8%

NYSE:LNG opened at $236.46 on Wednesday. The company has a current ratio of 0.57, a quick ratio of 0.48 and a debt-to-equity ratio of 2.55. Cheniere Energy, Inc. has a twelve month low of $186.20 and a twelve month high of $300.89. The company's 50 day moving average is $260.04 and its two-hundred day moving average is $229.64. The company has a market cap of $49.55 billion and a PE ratio of 38.89.

Cheniere Energy (NYSE:LNG - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The energy company reported ($16.65) EPS for the quarter, missing the consensus estimate of $4.25 by ($20.90). Cheniere Energy had a net margin of 7.23% and a return on equity of 38.95%. The business had revenue of $5.87 billion for the quarter, compared to analyst estimates of $5.69 billion. During the same quarter in the previous year, the firm posted $1.57 earnings per share. The business's revenue was up 7.8% on a year-over-year basis. Analysts anticipate that Cheniere Energy, Inc. will post 15.2 EPS for the current year.

Cheniere Energy announced that its Board of Directors has approved a stock repurchase plan on Thursday, February 26th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the energy company to purchase up to 21.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Cheniere Energy Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Monday, May 11th were paid a dividend of $0.555 per share. This represents a $2.22 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, May 11th. Cheniere Energy's payout ratio is presently 36.51%.

Insider Activity at Cheniere Energy

In other Cheniere Energy news, CFO Zach Davis sold 29,000 shares of Cheniere Energy stock in a transaction that occurred on Monday, March 30th. The shares were sold at an average price of $300.00, for a total transaction of $8,700,000.00. Following the completion of the sale, the chief financial officer directly owned 87,146 shares in the company, valued at approximately $26,143,800. The trade was a 24.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Sean N. Markowitz sold 22,246 shares of Cheniere Energy stock in a transaction that occurred on Thursday, March 26th. The shares were sold at an average price of $290.98, for a total transaction of $6,473,141.08. Following the sale, the executive vice president owned 64,000 shares of the company's stock, valued at approximately $18,622,720. The trade was a 25.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.55% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Wells Fargo & Company cut their price objective on shares of Cheniere Energy from $280.00 to $271.00 and set an "overweight" rating on the stock in a research report on Friday, March 13th. Wolfe Research reaffirmed an "outperform" rating and issued a $300.00 price objective on shares of Cheniere Energy in a research report on Tuesday. Citigroup boosted their target price on shares of Cheniere Energy from $280.00 to $330.00 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. UBS Group set a $290.00 target price on shares of Cheniere Energy in a research report on Wednesday, May 13th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Cheniere Energy from $338.00 to $325.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 14th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Buy" and an average price target of $298.50.

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.

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