SageGuard Financial Group LLC Makes New $1.78 Million Investment in Western Midstream Partners, LP $WES

Key Points

• SageGuard Financial Group opened a new position in Western Midstream Partners, acquiring 44,999 shares worth about $1.78 million in Q4.
• Western Midstream raised its quarterly dividend to $0.93 (annualized $3.72), implying a ~9.2% yield, though the payout ratio is high at 121.3%.
• The company reported a Q4 earnings miss (EPS $0.47 vs. $0.91 expected) and faces a consensus analyst rating of Hold with a $41.71 price target.

SageGuard Financial Group LLC acquired a new position in Western Midstream Partners, LP (NYSE:WES - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 44,999 shares of the pipeline company's stock, valued at approximately $1,777,000.

A number of other large investors have also modified their holdings of WES. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Western Midstream Partners in the third quarter worth about $300,257,000. Berkley W R Corp acquired a new position in shares of Western Midstream Partners in the third quarter worth about $34,857,000. CIBC Bancorp USA Inc. purchased a new stake in shares of Western Midstream Partners in the third quarter valued at approximately $32,153,000. Bank of America Corp DE increased its position in shares of Western Midstream Partners by 31.2% in the third quarter. Bank of America Corp DE now owns 1,872,394 shares of the pipeline company's stock valued at $73,566,000 after buying an additional 445,663 shares in the last quarter. Finally, CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its position in shares of Western Midstream Partners by 21.2% in the fourth quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,540,900 shares of the pipeline company's stock valued at $60,866,000 after buying an additional 270,000 shares in the last quarter. Institutional investors and hedge funds own 84.82% of the company's stock.

Insider Activity at Western Midstream Partners

In related news, Director Robert G. Phillips purchased 1,250 shares of the business's stock in a transaction that occurred on Wednesday, March 11th. The stock was purchased at an average price of $40.19 per share, with a total value of $50,237.50. Following the completion of the acquisition, the director owned 5,296 shares in the company, valued at $212,846.24. This trade represents a 30.89% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Christopher B. Dial sold 5,879 shares of the stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $42.35, for a total value of $248,975.65. Following the completion of the sale, the senior vice president directly owned 185,011 shares of the company's stock, valued at approximately $7,835,215.85. This represents a 3.08% decrease in their position. The SEC filing for this sale provides additional information. 0.04% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

WES has been the subject of a number of recent analyst reports. Wall Street Zen cut Western Midstream Partners from a "buy" rating to a "hold" rating in a research report on Saturday, December 27th. Wells Fargo & Company boosted their price objective on Western Midstream Partners from $39.00 to $41.00 and gave the company an "equal weight" rating in a research report on Friday, March 13th. Stifel Nicolaus cut their price objective on Western Midstream Partners from $43.00 to $42.00 and set a "hold" rating for the company in a research report on Friday, February 20th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Western Midstream Partners from $44.00 to $43.00 and set a "neutral" rating on the stock in a research report on Thursday, March 12th. One analyst has rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $41.71.

Western Midstream Partners Price Performance

Shares of NYSE WES opened at $40.64 on Tuesday. The firm has a 50-day simple moving average of $41.51 and a 200-day simple moving average of $40.16. The stock has a market capitalization of $16.00 billion, a price-to-earnings ratio of 13.55 and a beta of 0.73. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.97. Western Midstream Partners, LP has a 52 week low of $35.25 and a 52 week high of $44.74.

Western Midstream Partners (NYSE:WES - Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The pipeline company reported $0.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.91 by ($0.44). Western Midstream Partners had a net margin of 30.52% and a return on equity of 33.14%. The company had revenue of $1.03 billion during the quarter, compared to analysts' expectations of $1.06 billion. During the same quarter last year, the company earned $0.85 earnings per share. Western Midstream Partners's revenue for the quarter was up 11.1% on a year-over-year basis. On average, equities analysts predict that Western Midstream Partners, LP will post 3.2 earnings per share for the current fiscal year.

Western Midstream Partners Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be issued a $0.93 dividend. This is a boost from Western Midstream Partners's previous quarterly dividend of $0.91. This represents a $3.72 annualized dividend and a dividend yield of 9.2%. The ex-dividend date of this dividend is Friday, May 1st. Western Midstream Partners's payout ratio is 121.33%.

Western Midstream Partners Company Profile

Western Midstream Partners, LP NYSE: WES is a midstream energy infrastructure company that owns, operates and develops an integrated network of crude oil, natural gas and produced water gathering, processing, transportation and storage assets in the United States. The partnership's primary offerings include pipeline transportation, fractionation services, natural gas liquids (NGL) logistics and produced water handling. Through its fee-based and commodity-based contracts, Western Midstream provides its customers with essential services that support efficient energy production and distribution.

The company's asset portfolio spans key onshore basins, including the Delaware Basin in West Texas and southeastern New Mexico, the San Juan Basin in New Mexico and Colorado, and the Denver-Julesburg Basin in Colorado.

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