Clearbridge Investments LLC Has $22.10 Million Position in Cheniere Energy, Inc. $LNG

Key Points

• Clearbridge Investments cut its Cheniere Energy stake by 71.3% in the fourth quarter, though it still held 113,680 shares worth about $22.1 million at quarter-end.
• Cheniere reported a sharp earnings miss in its latest quarter, posting ($16.65) EPS versus the $4.25 estimate, even as revenue came in slightly above expectations at $5.87 billion.
• The company has strong support from institutions and analysts, with 87.26% of shares owned by institutional investors, a $10 billion buyback authorization in place, and a consensus analyst rating of Buy with a target price of $298.63.

Clearbridge Investments LLC reduced its position in shares of Cheniere Energy, Inc. (NYSE:LNG - Free Report) by 71.3% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 113,680 shares of the energy company's stock after selling 282,887 shares during the quarter. Clearbridge Investments LLC owned about 0.05% of Cheniere Energy worth $22,098,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Cheniere Energy during the fourth quarter worth $731,774,000. Vanguard Group Inc. grew its stake in shares of Cheniere Energy by 2.0% in 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 last quarter. State Street Corp grew its stake in shares of Cheniere Energy by 6.7% in 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 last quarter. Victory Capital Management Inc. grew its holdings in shares of Cheniere Energy by 21.5% during the 3rd quarter. Victory Capital Management Inc. now owns 2,025,609 shares of the energy company's stock worth $475,633,000 after acquiring an additional 359,123 shares during the period. Finally, Two Sigma Investments LP boosted its position in shares of Cheniere Energy by 53.7% in the 3rd quarter. Two Sigma Investments LP now owns 816,028 shares of the energy company's stock worth $191,750,000 after purchasing an additional 285,062 shares in the last quarter. 87.26% of the stock is owned by institutional investors.

Cheniere Energy Trading Up 1.0%

Shares of LNG stock opened at $239.07 on Wednesday. Cheniere Energy, Inc. has a 12-month low of $186.20 and a 12-month high of $300.89. 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 stock's 50-day moving average price is $253.88 and its 200-day moving average price is $230.67. The stock has a market capitalization of $50.10 billion and a price-to-earnings ratio of 39.32.

Cheniere Energy (NYSE:LNG - Get Free Report) last issued its earnings results on Wednesday, May 6th. The energy company reported ($16.65) earnings per share (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 firm had revenue of $5.87 billion during the quarter, compared to the consensus estimate of $5.69 billion. During the same period last year, the firm posted $1.57 earnings per share. The company's revenue for the quarter was up 7.8% compared to the same quarter last year. Equities research analysts predict that Cheniere Energy, Inc. will post 14.93 EPS for the current fiscal year.

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

Cheniere Energy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Stockholders of record on Monday, May 11th were issued a $0.555 dividend. This represents a $2.22 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, May 11th. Cheniere Energy's payout ratio is 36.51%.

Insider Activity

In other news, 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 directly 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 sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 value 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 $26,143,800. This trade represents a 24.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.55% of the company's stock.

Analyst Ratings Changes

LNG has been the subject of several research analyst reports. Benchmark reaffirmed an "outperform" rating on shares of Cheniere Energy in a report on Tuesday, May 26th. Morgan Stanley reduced their target price on shares of Cheniere Energy from $313.00 to $308.00 and set an "overweight" rating for the company in a report on Tuesday, April 21st. JPMorgan Chase & Co. lifted their target price on shares of Cheniere Energy from $325.00 to $327.00 and gave the company an "overweight" rating in a research note on Wednesday, June 3rd. Zacks Research raised shares of Cheniere Energy from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Finally, Wells Fargo & Company cut their price target on Cheniere Energy from $280.00 to $271.00 and set an "overweight" rating for the company in a research note on Friday, March 13th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Cheniere Energy presently has an average rating of "Buy" and a consensus target price of $298.63.

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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