Sumitomo Mitsui Trust Group Inc. Reduces Stake in Cheniere Energy, Inc. $LNG

Key Points

• Sumitomo Mitsui Trust Group trimmed its stake in Cheniere by 6.0%, selling 31,137 shares and ending the quarter with 484,853 shares worth about $94.25 million (roughly 0.23% of the company).
• Cheniere posted a big EPS beat — $10.68 vs. $3.90 expected — with revenue up 22.9% year‑over‑year, and its board authorized a $10.00 billion share repurchase (up to 21.1% of outstanding shares), signaling management believes the stock may be undervalued.
• Corporate insiders (the EVP and CFO) recently sold material stakes (22,246 and 29,000 shares, respectively, each reducing their positions by ~25%), while analysts maintain a consensus rating of “Moderate Buy” with a target price around $291.88 and several firms raising price targets.

Sumitomo Mitsui Trust Group Inc. reduced its stake in Cheniere Energy, Inc. (NYSE:LNG - Free Report) by 6.0% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 484,853 shares of the energy company's stock after selling 31,137 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.23% of Cheniere Energy worth $94,251,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in the stock. Salomon & Ludwin LLC acquired a new position in shares of Cheniere Energy in the 3rd quarter valued at $25,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Cheniere Energy in the 3rd quarter valued at $27,000. Accordant Advisory Group Inc acquired a new position in shares of Cheniere Energy in the 4th quarter valued at $29,000. Hazlett Burt & Watson Inc. lifted its stake in shares of Cheniere Energy by 250.0% in the 3rd quarter. Hazlett Burt & Watson Inc. now owns 140 shares of the energy company's stock valued at $32,000 after purchasing an additional 100 shares during the last quarter. Finally, Armstrong Advisory Group Inc. lifted its stake in shares of Cheniere Energy by 47.6% in the 3rd quarter. Armstrong Advisory Group Inc. now owns 155 shares of the energy company's stock valued at $36,000 after purchasing an additional 50 shares during the last quarter. 87.26% of the stock is currently owned by hedge funds and other institutional investors.

Cheniere Energy Price Performance

LNG opened at $260.75 on Tuesday. The stock's 50-day moving average price is $250.46 and its 200 day moving average price is $223.37. 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 0.94, a quick ratio of 0.81 and a debt-to-equity ratio of 1.74. The firm has a market cap of $54.79 billion, a price-to-earnings ratio of 10.73 and a beta of 0.14.

Cheniere Energy (NYSE:LNG - Get Free Report) last posted its earnings results on Wednesday, February 25th. The energy company reported $10.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.90 by $6.78. Cheniere Energy had a return on equity of 32.04% and a net margin of 26.68%.The firm had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the prior year, the company earned $4.33 EPS. Cheniere Energy's revenue was up 22.9% on a year-over-year basis. As a group, sell-side analysts expect that Cheniere Energy, Inc. will post 11.69 earnings per share for the current year.

Cheniere Energy Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 6th were paid a dividend of $0.555 per share. The ex-dividend date of this dividend was Friday, February 6th. This represents a $2.22 annualized dividend and a yield of 0.9%. Cheniere Energy's dividend payout ratio is presently 9.14%.

Cheniere Energy announced that its board has initiated a share repurchase plan on Thursday, February 26th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the energy company to buy up to 21.1% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several brokerages have recently commented on LNG. Bank of America upped their price target on Cheniere Energy from $296.00 to $322.00 and gave the company a "buy" rating in a research note on Friday, March 20th. The Goldman Sachs Group upped their price target on Cheniere Energy from $276.00 to $312.00 and gave the company a "buy" rating in a research note on Tuesday, March 24th. Wells Fargo & Company decreased their price target on Cheniere Energy from $280.00 to $271.00 and set an "overweight" rating on the stock in a research note on Friday, March 13th. JPMorgan Chase & Co. upped their price target on Cheniere Energy from $279.00 to $338.00 and gave the company an "overweight" rating in a research note on Friday, March 27th. Finally, Jefferies Financial Group upped their price target on Cheniere Energy from $275.00 to $330.00 and gave the company a "buy" rating in a research note on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $291.88.

Insider Activity

In related news, EVP Sean N. Markowitz sold 22,246 shares of the 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 transaction, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Zach Davis sold 29,000 shares of the 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 transaction, 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 position. The disclosure for this sale is available in the SEC filing. 0.26% of the stock is currently owned by corporate insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.