Legato Capital Management LLC Acquires New Position in Chesapeake Utilities Corporation $CPK

Key Points

• Legato Capital Management opened a new position in Chesapeake Utilities in the fourth quarter, buying 14,697 shares valued at about $1.83 million and representing 0.06% of the company.
• Chesapeake Utilities reported better-than-expected quarterly results, with EPS of $2.47 versus $2.38 expected and revenue of $353.1 million, up 18.2% from a year earlier.
• The company also raised its quarterly dividend to $0.735 per share from $0.69, bringing the annualized payout to $2.94 and the yield to about 2.3%.

Legato Capital Management LLC purchased a new stake in shares of Chesapeake Utilities Corporation (NYSE:CPK - Free Report) in the fourth quarter, according to its most recent filing with the SEC. The firm purchased 14,697 shares of the utilities provider's stock, valued at approximately $1,834,000. Legato Capital Management LLC owned 0.06% of Chesapeake Utilities at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the business. EverSource Wealth Advisors LLC grew its stake in Chesapeake Utilities by 94.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 222 shares of the utilities provider's stock worth $27,000 after acquiring an additional 108 shares during the period. Geneos Wealth Management Inc. boosted its holdings in shares of Chesapeake Utilities by 292.9% in the 1st quarter. Geneos Wealth Management Inc. now owns 220 shares of the utilities provider's stock valued at $28,000 after purchasing an additional 164 shares during the last quarter. Entrust Financial LLC acquired a new position in shares of Chesapeake Utilities during the 4th quarter valued at $37,000. CIBC Private Wealth Group LLC lifted its holdings in shares of Chesapeake Utilities by 66.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 274 shares of the utilities provider's stock valued at $37,000 after acquiring an additional 109 shares in the last quarter. Finally, Hantz Financial Services Inc. lifted its holdings in shares of Chesapeake Utilities by 77.4% during the 3rd quarter. Hantz Financial Services Inc. now owns 298 shares of the utilities provider's stock valued at $40,000 after acquiring an additional 130 shares in the last quarter. 83.11% of the stock is owned by hedge funds and other institutional investors.

Chesapeake Utilities Stock Performance

CPK stock opened at $126.50 on Friday. The company has a quick ratio of 0.39, a current ratio of 0.43 and a debt-to-equity ratio of 0.80. The company has a market capitalization of $3.04 billion, a price-to-earnings ratio of 20.27 and a beta of 0.71. Chesapeake Utilities Corporation has a 12 month low of $117.64 and a 12 month high of $140.59. The firm has a 50 day moving average of $127.22 and a two-hundred day moving average of $129.15.

Chesapeake Utilities (NYSE:CPK - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The utilities provider reported $2.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.38 by $0.09. The business had revenue of $353.10 million during the quarter, compared to the consensus estimate of $339.86 million. Chesapeake Utilities had a net margin of 15.11% and a return on equity of 9.53%. Chesapeake Utilities's quarterly revenue was up 18.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.22 EPS. Chesapeake Utilities has set its FY 2028 guidance at 7.750-8.00 EPS. As a group, equities analysts anticipate that Chesapeake Utilities Corporation will post 6.51 EPS for the current fiscal year.

Chesapeake Utilities Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, July 6th. Shareholders of record on Monday, June 15th will be issued a $0.735 dividend. This is a boost from Chesapeake Utilities's previous quarterly dividend of $0.69. The ex-dividend date of this dividend is Monday, June 15th. This represents a $2.94 dividend on an annualized basis and a yield of 2.3%. Chesapeake Utilities's payout ratio is currently 43.91%.

Analysts Set New Price Targets

A number of equities analysts have commented on CPK shares. Weiss Ratings upgraded shares of Chesapeake Utilities from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, May 7th. Wall Street Zen raised shares of Chesapeake Utilities from a "sell" rating to a "hold" rating in a research report on Saturday, March 14th. Wells Fargo & Company initiated coverage on shares of Chesapeake Utilities in a research note on Tuesday, May 12th. They set an "equal weight" rating and a $132.00 target price for the company. Finally, Barclays set a $142.00 target price on shares of Chesapeake Utilities and gave the company an "equal weight" rating in a research note on Monday, April 20th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $137.00.

Insider Activity

In other news, SVP Kevin J. Webber sold 2,000 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $127.37, for a total value of $254,740.00. Following the completion of the transaction, the senior vice president owned 12,652 shares in the company, valued at approximately $1,611,485.24. This represents a 13.65% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.36% of the company's stock.

About Chesapeake Utilities

Chesapeake Utilities Corporation NYSE: CPK is a diversified energy services holding company headquartered in Dover, Delaware. Through its operating subsidiaries, the company engages in natural gas distribution, transmission and storage; propane distribution; wholesale propane supply; and contract compression and natural gas liquids processing. Its core mission is to provide safe, reliable and cost-effective energy solutions to residential, commercial and industrial customers across multiple U.S.

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