NextDecade (NASDAQ:NEXT) Trading Down 7.7% - Time to Sell?

Key Points

• Shares fell 7.7% to about $7.46 on Thursday (trading as low as $7.41) with roughly 3.06 million shares changing hands, about 30% below the stock's average daily volume.
• Analyst sentiment is mixed: one sell, three holds and one buy lead to an overall "Hold" consensus and an average price target of $6.67, with recent price-target cuts from TD Cowen and Morgan Stanley and an overweight start from Capital One.
• Fundamentals are weak—NextDecade missed quarterly EPS estimates (reported ($0.88) vs. ($0.68) expected), has low liquidity (current ratio 0.54) and high leverage (debt/equity 3.70)—but a director purchased 71,500 shares at $7.07, representing insider buying.

NextDecade Corporation (NASDAQ:NEXT - Get Free Report) fell 7.7% on Thursday . The company traded as low as $7.41 and last traded at $7.4550. 3,060,060 shares changed hands during trading, a decline of 30% from the average session volume of 4,358,703 shares. The stock had previously closed at $8.08.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on NEXT. Weiss Ratings reissued a "sell (e+)" rating on shares of NextDecade in a report on Monday, December 29th. TD Cowen decreased their price objective on NextDecade from $7.00 to $6.00 and set a "hold" rating on the stock in a report on Thursday, March 5th. Capital One Financial began coverage on NextDecade in a report on Friday, February 6th. They set an "overweight" rating and a $7.00 price objective on the stock. Finally, Morgan Stanley decreased their price objective on NextDecade from $10.00 to $7.00 and set an "equal weight" rating on the stock in a report on Tuesday, February 24th. 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. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $6.67.

NextDecade Stock Down 8.4%

The company has a current ratio of 0.54, a quick ratio of 0.54 and a debt-to-equity ratio of 3.70. The stock has a 50 day simple moving average of $6.15 and a 200 day simple moving average of $5.96. The firm has a market capitalization of $1.96 billion, a PE ratio of -6.34 and a beta of 1.69.

NextDecade (NASDAQ:NEXT - Get Free Report) last announced its quarterly earnings results on Friday, February 27th. The company reported ($0.88) EPS for the quarter, missing analysts' consensus estimates of ($0.68) by ($0.20). As a group, sell-side analysts forecast that NextDecade Corporation will post -0.61 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Pamela K.M. Beall purchased 71,500 shares of the firm's stock in a transaction on Monday, March 23rd. The shares were acquired at an average cost of $7.07 per share, with a total value of $505,505.00. Following the purchase, the director directly owned 71,500 shares of the company's stock, valued at approximately $505,505. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 1.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On NextDecade

A number of large investors have recently bought and sold shares of NEXT. US Bancorp DE increased its stake in NextDecade by 22,782.4% in the 3rd quarter. US Bancorp DE now owns 3,890 shares of the company's stock worth $26,000 after purchasing an additional 3,873 shares during the period. Bessemer Group Inc. purchased a new position in shares of NextDecade during the third quarter valued at approximately $29,000. Comerica Bank increased its stake in shares of NextDecade by 88.0% during the first quarter. Comerica Bank now owns 4,060 shares of the company's stock valued at $32,000 after buying an additional 1,900 shares during the period. Raymond James Financial Inc. purchased a new position in shares of NextDecade during the second quarter valued at approximately $36,000. Finally, Federated Hermes Inc. purchased a new position in shares of NextDecade during the third quarter valued at approximately $38,000. 66.74% of the stock is owned by hedge funds and other institutional investors.

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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