NGL Energy Partners (NYSE:NGL) Shares Gap Down - What's Next?

Key Points

• NGL Energy Partners shares gapped down Friday, opening at $15.28 after closing at $15.80 and later trading at $15.05, a drop of about 4.7%.
• The company’s latest earnings missed expectations, posting EPS of -$0.71 versus consensus for $0.18, even though revenue came in slightly above estimates at $949.51 million.
• Despite the weak earnings, NGL announced a $100 million stock buyback in April, while analysts currently rate the stock a consensus Hold.

NGL Energy Partners LP (NYSE:NGL - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $15.80, but opened at $15.28. NGL Energy Partners shares last traded at $15.05, with a volume of 22,642 shares trading hands.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Weiss Ratings lowered NGL Energy Partners from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, June 4th. Zacks Research raised shares of NGL Energy Partners from a "strong sell" rating to a "hold" rating in a research report on Friday, April 10th. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of "Hold".

NGL Energy Partners Stock Down 4.7%

The stock's fifty day simple moving average is $16.35 and its two-hundred day simple moving average is $13.32. The firm has a market cap of $1.88 billion, a PE ratio of -4.64 and a beta of 0.60.

NGL Energy Partners (NYSE:NGL - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The oil and gas company reported ($0.71) EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.89). The company had revenue of $949.51 million during the quarter, compared to the consensus estimate of $941.52 million. NGL Energy Partners had a negative return on equity of 47.64% and a negative net margin of 4.51%. On average, equities research analysts anticipate that NGL Energy Partners LP will post 0.82 earnings per share for the current fiscal year.

NGL Energy Partners announced that its board has approved a stock buyback program on Thursday, April 9th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the oil and gas company to repurchase up to 6.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On NGL Energy Partners

Several institutional investors and hedge funds have recently made changes to their positions in the company. Goldman Sachs Group Inc. increased its holdings in NGL Energy Partners by 3.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 5,248,614 shares of the oil and gas company's stock worth $23,829,000 after buying an additional 165,249 shares in the last quarter. Jump Financial LLC boosted its holdings in shares of NGL Energy Partners by 223.4% during the 2nd quarter. Jump Financial LLC now owns 224,779 shares of the oil and gas company's stock valued at $960,000 after acquiring an additional 155,279 shares during the last quarter. Angelo Gordon & CO. L.P. purchased a new stake in shares of NGL Energy Partners during the 2nd quarter valued at about $2,730,000. Bank of America Corp DE grew its stake in shares of NGL Energy Partners by 8.8% in the second quarter. Bank of America Corp DE now owns 9,885,023 shares of the oil and gas company's stock worth $42,209,000 after acquiring an additional 797,895 shares during the period. Finally, Massar Capital Management LP grew its stake in shares of NGL Energy Partners by 23.2% in the second quarter. Massar Capital Management LP now owns 28,143 shares of the oil and gas company's stock worth $120,000 after acquiring an additional 5,295 shares during the period. Institutional investors own 40.62% of the company's stock.

About NGL Energy Partners

NGL Energy Partners LP is a publicly traded master limited partnership that provides midstream infrastructure and marketing services for the energy industry. The company focuses on the transportation, storage, fractionation and marketing of natural gas liquids (NGLs) and refined petroleum products. Through its integrated operations, NGL Energy Partners serves producers, processors, refiners and industrial customers across key U.S. energy-producing regions.

The partnership's asset base includes pipelines, storage terminals, fractionation plants, and distribution facilities.

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