Cheniere Energy, Inc. $LNG Position Cut by TimesSquare Capital Management LLC

Key Points

• TimesSquare Capital Management cut its Cheniere Energy stake by 5.4% in the fourth quarter, selling 26,545 shares and leaving it with 463,761 shares worth about $90.2 million.
• Cheniere reported a major quarterly earnings miss, posting EPS of -$16.65 versus the $4.25 estimate, even though revenue of $5.87 billion topped expectations and rose 7.8% year over year.
• The company continues to return capital to shareholders through a quarterly dividend of $0.555 per share and a $10 billion stock buyback program authorized earlier this year.

TimesSquare Capital Management LLC trimmed its stake in Cheniere Energy, Inc. (NYSE:LNG - Free Report) by 5.4% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 463,761 shares of the energy company's stock after selling 26,545 shares during the quarter. Cheniere Energy makes up about 1.4% of TimesSquare Capital Management LLC's investment portfolio, making the stock its 18th largest holding. TimesSquare Capital Management LLC owned about 0.22% of Cheniere Energy worth $90,151,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. ProShare Advisors LLC raised its stake in shares of Cheniere Energy by 4.6% during the fourth quarter. ProShare Advisors LLC now owns 20,109 shares of the energy company's stock valued at $3,909,000 after purchasing an additional 884 shares in the last quarter. Radnor Capital Management LLC bought a new stake in shares of Cheniere Energy during the fourth quarter valued at about $449,000. HighTower Advisors LLC raised its stake in shares of Cheniere Energy by 4.2% during the fourth quarter. HighTower Advisors LLC now owns 176,121 shares of the energy company's stock valued at $34,236,000 after purchasing an additional 7,172 shares in the last quarter. Sapient Capital LLC raised its stake in shares of Cheniere Energy by 1.9% during the fourth quarter. Sapient Capital LLC now owns 4,816 shares of the energy company's stock valued at $932,000 after purchasing an additional 90 shares in the last quarter. Finally, North Dakota State Investment Board bought a new stake in shares of Cheniere Energy during the fourth quarter valued at about $1,510,000. 87.26% of the stock is currently owned by institutional investors.

Cheniere Energy Price Performance

Shares of Cheniere Energy stock opened at $248.06 on Tuesday. The company has a current ratio of 0.57, a quick ratio of 0.48 and a debt-to-equity ratio of 2.55. The company's 50-day moving average price is $264.00 and its two-hundred day moving average price is $227.78. Cheniere Energy, Inc. has a 52 week low of $186.20 and a 52 week high of $300.89. The stock has a market cap of $51.98 billion, a PE ratio of 40.80 and a beta of 0.07.

Cheniere Energy (NYSE:LNG - Get Free Report) last issued its quarterly earnings results 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 return on equity of 38.95% and a net margin of 7.23%.The business had revenue of $5.87 billion during the quarter, compared to the consensus estimate of $5.69 billion. During the same quarter last year, the firm posted $1.57 earnings per share. Cheniere Energy's revenue was up 7.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cheniere Energy, Inc. will post 15.2 EPS for the current fiscal year.

Cheniere Energy Announces Dividend

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

Cheniere Energy announced that its board has initiated a stock buyback program on Thursday, February 26th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the energy company to buy up to 21.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

LNG has been the topic of a number of recent analyst reports. 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 note on Friday, March 13th. Morgan Stanley cut their price objective on shares of Cheniere Energy from $313.00 to $308.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 21st. Citigroup lifted their price objective on shares of Cheniere Energy from $280.00 to $330.00 and gave the company a "buy" rating in a research note on Thursday, April 2nd. Scotiabank restated an "outperform" rating on shares of Cheniere Energy in a research note on Wednesday, May 13th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Cheniere Energy from $338.00 to $325.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 14th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $293.50.

Insider Activity

In other Cheniere Energy news, CFO Zach Davis sold 29,000 shares of the business's stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $300.00, for a total value of $8,700,000.00. Following 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Sean N. Markowitz sold 22,246 shares of the business's stock in a transaction dated Thursday, March 26th. The stock was sold at an average price of $290.98, for a total transaction of $6,473,141.08. Following the completion of the sale, the executive vice president owned 64,000 shares in the company, valued at approximately $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. 0.55% of the stock is currently owned by insiders.

About Cheniere Energy

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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