NextDecade (NASDAQ:NEXT) Shares Gap Down - What's Next?

Key Points

• Shares gapped down, opening at $7.34 vs. the prior close of $7.89 and last trading around $7.45; analysts hold a consensus "Hold" rating with a $7.00 price target (1 Buy, 3 Hold, 1 Sell).
• NextDecade's fundamentals show stress — market cap $1.98B, negative P/E (‑5.58), last-quarter EPS of ‑$0.88 (miss) with analysts forecasting ‑2.16 EPS for the year, and a high debt-to-equity ratio of 3.96 alongside a low current ratio of 0.40.
• Insider activity and ownership are notable: Director Pamela K.M. Beall purchased 71,500 shares at $7.07, insiders own 1.8% and institutional investors hold 66.74% of the stock, signaling some insider/institutional conviction despite the company's weaknesses.

NextDecade Corporation (NASDAQ:NEXT - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $7.89, but opened at $7.34. NextDecade shares last traded at $7.4480, with a volume of 435,228 shares.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. TD Cowen cut their target price on NextDecade from $7.00 to $6.00 and set a "hold" rating for the company in a research report on Thursday, March 5th. Capital One Financial started coverage on NextDecade in a research note on Friday, February 6th. They issued an "overweight" rating and a $7.00 price target for the company. Weiss Ratings raised shares of NextDecade from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, April 27th. Finally, Morgan Stanley lifted their price objective on shares of NextDecade from $7.00 to $8.00 and gave the company an "equal weight" rating in a research report on Tuesday, April 21st. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $7.00.

NextDecade Price Performance

The firm has a market cap of $1.98 billion, a P/E ratio of -5.58 and a beta of 1.65. The firm's fifty day simple moving average is $6.90 and its 200 day simple moving average is $6.03. The company has a debt-to-equity ratio of 3.96, a quick ratio of 0.54 and a current ratio of 0.40.

NextDecade (NASDAQ:NEXT - Get Free Report) last issued its earnings results on Friday, February 27th. The company reported ($0.88) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.68) by ($0.20). As a group, analysts forecast that NextDecade Corporation will post -2.16 earnings per share for the current year.

Insider Activity at NextDecade

In other news, Director Pamela K.M. Beall bought 71,500 shares of the stock in a transaction dated Monday, March 23rd. The stock was purchased at an average cost of $7.07 per share, for a total transaction of $505,505.00. Following the transaction, the director owned 71,500 shares of the company's stock, valued at $505,505. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On NextDecade

A number of hedge funds have recently bought and sold shares of NEXT. Alliancebernstein L.P. grew its stake in shares of NextDecade by 1.5% in the 3rd quarter. Alliancebernstein L.P. now owns 122,020 shares of the company's stock worth $829,000 after buying an additional 1,800 shares in the last quarter. Comerica Bank raised its position in shares of NextDecade by 88.0% during the 1st quarter. Comerica Bank now owns 4,060 shares of the company's stock valued at $32,000 after buying an additional 1,900 shares in the last quarter. Inscription Capital LLC raised its position in shares of NextDecade by 16.0% during the 4th quarter. Inscription Capital LLC now owns 15,739 shares of the company's stock valued at $83,000 after buying an additional 2,172 shares in the last quarter. Fort Washington Investment Advisors Inc. OH lifted its holdings in shares of NextDecade by 0.3% in the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 644,417 shares of the company's stock valued at $4,936,000 after acquiring an additional 2,235 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC lifted its holdings in shares of NextDecade by 15.3% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 20,222 shares of the company's stock valued at $150,000 after acquiring an additional 2,686 shares during the last quarter. Hedge funds and other institutional investors own 66.74% of the company's stock.

About NextDecade

NextDecade Corporation is a Houston‐based liquefied natural gas (LNG) and decarbonization company focused on the development, engineering, construction and operation of large‐scale LNG export facilities. The company's core mission is to deliver cleaner energy solutions to global customers while integrating carbon capture and sequestration technologies to reduce greenhouse gas emissions. NextDecade's projects are designed to leverage abundant U.S. natural gas supplies to meet growing worldwide demand for low‐carbon fuel.

NextDecade's flagship project, Rio Grande LNG, is located at the Port of Brownsville in southern Texas.

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