NextDecade (NASDAQ:NEXT) Trading Down 8.8% - Here's Why

Key Points

• NextDecade shares fell 8.8% on Friday to $6.875, trading as low as $6.88 on volume of about 3.38 million shares (down ~21% from its average).
• Analysts show a consensus "Hold" rating with an average target of $6.67 (one Buy, three Hold, one Sell); recent actions include Morgan Stanley cutting its target to $7 and TD Cowen to $6 while Capital One started coverage at Overweight with a $7 target.
• The company reported a quarterly EPS of ($0.88) vs. a ($0.68) estimate miss and has weak liquidity (quick/current ratios 0.54) and high leverage (debt-to-equity 3.70), reflecting continued financial strain.

NextDecade Corporation (NASDAQ:NEXT - Get Free Report) shares fell 8.8% on Friday . The stock traded as low as $6.88 and last traded at $6.8750. 3,381,305 shares traded hands during mid-day trading, a decline of 21% from the average session volume of 4,306,815 shares. The stock had previously closed at $7.54.

Analyst Ratings Changes

NEXT has been the subject of several research analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of NextDecade in a research note on Monday, December 29th. Capital One Financial assumed coverage on shares of NextDecade in a report on Friday, February 6th. They set an "overweight" rating and a $7.00 price objective on the stock. Morgan Stanley cut their price objective on shares of NextDecade from $10.00 to $7.00 and set an "equal weight" rating for the company in a research report on Tuesday, February 24th. Finally, TD Cowen reduced their target price on shares of NextDecade from $7.00 to $6.00 and set a "hold" rating for the company in a research note on Thursday, March 5th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $6.67.

NextDecade Stock Performance

The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 3.70. The firm has a 50-day moving average of $6.43 and a 200 day moving average of $5.99. The stock has a market capitalization of $1.81 billion, a P/E ratio of -5.85 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) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.68) by ($0.20). Research analysts anticipate that NextDecade Corporation will post -0.61 EPS for the current fiscal year.

Insider Transactions at NextDecade

In other NextDecade news, Director Pamela K.M. Beall purchased 71,500 shares of the company's stock in a transaction that occurred on Monday, March 23rd. The stock was purchased at an average price of $7.07 per share, with a total value of $505,505.00. Following the completion of the transaction, the director directly owned 71,500 shares of the company's stock, valued at approximately $505,505. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On NextDecade

A number of hedge funds have recently modified their holdings of the stock. Tudor Investment Corp ET AL raised its stake in NextDecade by 262.8% during the third quarter. Tudor Investment Corp ET AL now owns 912,589 shares of the company's stock worth $6,196,000 after acquiring an additional 661,028 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of NextDecade by 168.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 394,476 shares of the company's stock valued at $2,678,000 after purchasing an additional 247,618 shares in the last quarter. Citigroup Inc. boosted its stake in shares of NextDecade by 1,112.2% in the 3rd quarter. Citigroup Inc. now owns 681,904 shares of the company's stock valued at $4,630,000 after purchasing an additional 625,652 shares in the last quarter. Moody Aldrich Partners LLC bought a new stake in shares of NextDecade in the 3rd quarter worth about $1,207,000. Finally, Fort Washington Investment Advisors Inc. OH increased its position in shares of NextDecade by 21.2% during the 4th quarter. Fort Washington Investment Advisors Inc. OH now owns 642,182 shares of the company's stock worth $3,384,000 after purchasing an additional 112,300 shares in the last quarter. 66.74% of the stock is owned by institutional investors and hedge funds.

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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