Cheniere Energy, Inc. $LNG Shares Acquired by Applied Finance Capital Management LLC

Key Points

• Applied Finance Capital Management increased its Cheniere Energy stake by 150.8% in the fourth quarter, bringing its holdings to 10,693 shares worth about $2.08 million.
• Institutional ownership remains very high, with major investors like Vanguard and State Street also adding shares; 87.26% of Cheniere Energy is held by institutions and hedge funds.
• Analysts are still broadly positive on LNG, with a consensus “Buy” rating and an average price target of $293.50, even as the company recently reported a large earnings miss despite revenue topping estimates.

Applied Finance Capital Management LLC grew its position in Cheniere Energy, Inc. (NYSE:LNG - Free Report) by 150.8% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,693 shares of the energy company's stock after acquiring an additional 6,429 shares during the quarter. Applied Finance Capital Management LLC's holdings in Cheniere Energy were worth $2,079,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Cheniere Energy by 2.0% during the fourth quarter. Vanguard Group Inc. now owns 21,219,557 shares of the energy company's stock worth $4,124,870,000 after purchasing an additional 414,022 shares during the period. State Street Corp lifted its holdings in shares of Cheniere Energy by 6.7% during the third quarter. State Street Corp now owns 6,007,073 shares of the energy company's stock worth $1,411,542,000 after purchasing an additional 377,369 shares during the period. Victory Capital Management Inc. lifted its holdings in shares of Cheniere Energy by 21.5% during the third quarter. Victory Capital Management Inc. now owns 2,025,609 shares of the energy company's stock worth $475,633,000 after purchasing an additional 359,123 shares during the period. Northern Trust Corp lifted its holdings in shares of Cheniere Energy by 5.6% during the third quarter. Northern Trust Corp now owns 1,786,636 shares of the energy company's stock worth $419,824,000 after purchasing an additional 95,545 shares during the period. Finally, American Century Companies Inc. lifted its holdings in shares of Cheniere Energy by 2.8% during the third quarter. American Century Companies Inc. now owns 1,776,978 shares of the energy company's stock worth $417,554,000 after purchasing an additional 47,619 shares during the period. 87.26% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently weighed in on LNG shares. UBS Group set a $290.00 price target on Cheniere Energy in a report on Wednesday. Scotiabank reaffirmed an "outperform" rating on shares of Cheniere Energy in a report on Wednesday. JPMorgan Chase & Co. decreased their price target on Cheniere Energy from $338.00 to $325.00 and set an "overweight" rating for the company in a report on Tuesday, April 14th. TD Cowen increased their price target on Cheniere Energy from $265.00 to $270.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Finally, Barclays increased their price target on Cheniere Energy from $259.00 to $271.00 and gave the stock an "overweight" rating in a report on Friday, February 27th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Cheniere Energy presently has a consensus rating of "Buy" and an average price target of $293.50.

Insiders Place Their Bets

In related news, CFO Zach Davis sold 29,000 shares of Cheniere Energy stock in a transaction dated Monday, March 30th. The stock was 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 owned 87,146 shares in the company, valued at approximately $26,143,800. This trade represents a 24.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Sean N. Markowitz sold 22,246 shares of Cheniere Energy stock in a transaction dated Thursday, March 26th. The stock was sold at an average price of $290.98, for a total value 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. This represents a 25.79% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.55% of the company's stock.

Cheniere Energy Trading Up 0.3%

Shares of LNG stock opened at $241.77 on Friday. Cheniere Energy, Inc. has a fifty-two week low of $186.20 and a fifty-two week high of $300.89. The stock has a market cap of $50.66 billion, a P/E ratio of 39.76 and a beta of 0.07. The business has a fifty day simple moving average of $264.03 and a 200-day simple moving average of $227.50. The company has a quick ratio of 0.81, a current ratio of 0.57 and a debt-to-equity ratio of 2.55.

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

Cheniere Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders 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 dividend on an annualized basis and a dividend yield of 0.9%. Cheniere Energy's dividend payout ratio (DPR) is currently 36.51%.

Cheniere Energy announced that its board has approved a share repurchase program on Thursday, February 26th that authorizes the company to buyback $10.00 billion in 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 generally an indication that the company's management believes its stock is undervalued.

Cheniere Energy 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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