JPMorgan Chase & Co. Has Lowered Expectations for Cheniere Energy (NYSE:LNG) Stock Price

Key Points

• JPMorgan cut its price target on Cheniere from $338 to $325 and retained an overweight rating, with the $325 target implying roughly a 25% upside from the recent close.
• Other major analysts (Morgan Stanley, BMO, Citi, UBS, Jefferies) mostly raised targets and ratings, leaving MarketBeat's consensus at a Moderate Buy with an average price target of $292.82.
• Cheniere reported a strong quarter — $10.68 EPS vs. $3.90 estimate — and authorized a $10 billion share buyback (up to 21.1% of shares), though insiders have recently sold stock and institutions own about 87.3% of shares.

Cheniere Energy (NYSE:LNG - Get Free Report) had its price target reduced by investment analysts at JPMorgan Chase & Co. from $338.00 to $325.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has an "overweight" rating on the energy company's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 25.19% from the stock's previous close.

Several other research analysts have also weighed in on LNG. Morgan Stanley upgraded Cheniere Energy from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $236.00 to $313.00 in a research report on Monday, March 23rd. BMO Capital Markets upped their price target on Cheniere Energy from $265.00 to $306.00 and gave the company an "outperform" rating in a research note on Monday, March 23rd. Citigroup increased their price target on Cheniere Energy from $280.00 to $330.00 and gave the stock a "buy" rating in a report on Thursday, April 2nd. UBS Group raised their price objective on Cheniere Energy from $305.00 to $340.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. Finally, Jefferies Financial Group boosted their price objective on shares of Cheniere Energy from $275.00 to $330.00 and gave the company a "buy" rating in a report on Tuesday, April 7th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Cheniere Energy currently has an average rating of "Moderate Buy" and a consensus price target of $292.82.

Cheniere Energy Trading Down 0.8%

LNG stock traded down $1.99 during trading on Tuesday, reaching $259.61. 1,401,517 shares of the stock were exchanged, compared to its average volume of 2,811,136. 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 capitalization of $54.55 billion, a price-to-earnings ratio of 10.69 and a beta of 0.14. The business has a 50 day moving average price of $250.46 and a 200-day moving average price of $223.37. Cheniere Energy has a 1 year low of $186.20 and a 1 year high of $300.89.

Cheniere Energy (NYSE:LNG - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The energy company reported $10.68 earnings per share for the quarter, beating the consensus estimate of $3.90 by $6.78. The business had revenue of $5.45 billion during the quarter, compared to analysts' expectations of $5.48 billion. Cheniere Energy had a net margin of 26.68% and a return on equity of 32.04%. The business's revenue for the quarter was up 22.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.33 EPS. On average, research analysts predict that Cheniere Energy will post 11.69 earnings per share for the current year.

Cheniere Energy declared that its board has initiated a stock buyback program on Thursday, February 26th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the energy company to reacquire up to 21.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insider Activity

In other Cheniere Energy news, EVP Sean N. Markowitz sold 22,246 shares of the business's stock in a transaction dated Thursday, March 26th. The shares were sold at an average price of $290.98, for a total transaction of $6,473,141.08. Following the sale, the executive vice president directly owned 64,000 shares in the company, valued at $18,622,720. This represents a 25.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 transaction of $8,700,000.00. Following the sale, the chief financial officer directly owned 87,146 shares in the company, valued at $26,143,800. This represents a 24.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.26% of the company's stock.

Hedge Funds Weigh In On Cheniere Energy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in Cheniere Energy by 2.0% during the 4th quarter. Vanguard Group Inc. now owns 21,219,557 shares of the energy company's stock worth $4,124,870,000 after buying an additional 414,022 shares during the last quarter. State Street Corp boosted its position in shares of Cheniere Energy by 2.8% during the 4th quarter. State Street Corp now owns 6,174,695 shares of the energy company's stock worth $1,200,299,000 after acquiring an additional 167,622 shares in the last quarter. Norges Bank purchased a new position in shares of Cheniere Energy in the 4th quarter valued at about $731,774,000. Victory Capital Management Inc. raised its position in shares of Cheniere Energy by 12.5% during the 4th quarter. Victory Capital Management Inc. now owns 2,279,078 shares of the energy company's stock worth $443,031,000 after acquiring an additional 253,469 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Cheniere Energy by 6.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,263,826 shares of the energy company's stock worth $440,047,000 after purchasing an additional 134,695 shares during the last quarter. Hedge funds and other institutional investors own 87.26% of the company's stock.

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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