Cheniere Energy (NYSE:LNG) Shares Gap Down - Time to Sell?

Key Points

• Cheniere Energy shares fell sharply, opening at $261.93 versus a prior close of $272.40, while trading near $262.87.
• Despite the pullback, analysts maintain a generally positive outlook: the stock has a consensus “Moderate Buy” rating and an average price target of $305.65, well above its recent trading level.
• Cheniere’s latest quarter showed mixed results, with EPS of $3.02 missing estimates of $3.11, but revenue of $5.73 billion exceeding forecasts and rising 23.5% year over year. The company also declared a $0.555 quarterly dividend, equal to a 0.8% yield.

Cheniere Energy, Inc. (NYSE:LNG - Get Free Report) shares gapped down prior to trading on Friday. The stock had previously closed at $272.40, but opened at $261.93. Cheniere Energy shares last traded at $262.8680, with a volume of 536,793 shares.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on LNG shares. Morgan Stanley reaffirmed an "overweight" rating and set a $310.00 price target on shares of Cheniere Energy in a research report on Friday, August 7th. Argus set a $330.00 price objective on shares of Cheniere Energy in a research note on Tuesday, August 18th. JPMorgan Chase & Co. upped their price objective on Cheniere Energy from $327.00 to $334.00 and gave the stock an "overweight" rating in a report on Friday, July 24th. Zacks Research lowered Cheniere Energy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings upgraded Cheniere Energy from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Cheniere Energy currently has a consensus rating of "Moderate Buy" and an average target price of $305.65.

Cheniere Energy Price Performance

The stock has a market cap of $54.97 billion, a PE ratio of 19.82, a price-to-earnings-growth ratio of 1.07 and a beta of 0.06. The company has a quick ratio of 0.72, a current ratio of 0.87 and a debt-to-equity ratio of 1.97. The company's fifty day moving average is $272.52 and its 200 day moving average is $260.75.

Cheniere Energy (NYSE:LNG - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The energy company reported $3.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.11 by ($0.09). Cheniere Energy had a return on equity of 29.80% and a net margin of 13.57%.The business had revenue of $5.73 billion for the quarter, compared to analysts' expectations of $4.92 billion. During the same quarter in the prior year, the firm earned $7.30 earnings per share. Cheniere Energy's quarterly revenue was up 23.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Cheniere Energy, Inc. will post 16.76 earnings per share for the current fiscal year.

Cheniere Energy Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 18th. Investors of record on Monday, August 10th were issued a $0.5550 dividend. This represents a $2.22 annualized dividend and a yield of 0.8%. The ex-dividend date was Monday, August 10th. Cheniere Energy's dividend payout ratio is currently 16.53%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. First Horizon Corp raised its holdings in shares of Cheniere Energy by 7.7% in the 1st quarter. First Horizon Corp now owns 517 shares of the energy company's stock valued at $147,000 after purchasing an additional 37 shares during the period. Signal Advisors Wealth LLC grew its holdings in Cheniere Energy by 2.9% during the first quarter. Signal Advisors Wealth LLC now owns 1,497 shares of the energy company's stock worth $425,000 after purchasing an additional 42 shares during the period. Independence Bank of Kentucky increased its position in Cheniere Energy by 6.8% during the first quarter. Independence Bank of Kentucky now owns 725 shares of the energy company's stock worth $206,000 after buying an additional 46 shares during the last quarter. Optiver Holding B.V. increased its position in Cheniere Energy by 54.5% during the first quarter. Optiver Holding B.V. now owns 136 shares of the energy company's stock worth $39,000 after buying an additional 48 shares during the last quarter. Finally, AlTi Global Inc. raised its stake in Cheniere Energy by 1.5% in the first quarter. AlTi Global Inc. now owns 3,318 shares of the energy company's stock valued at $942,000 after buying an additional 50 shares during the period. Institutional investors and hedge funds own 87.26% of the company's stock.

About Cheniere Energy

Cheniere Energy, Inc is a Houston-based energy company focused on the production, liquefaction and export of liquefied natural gas (LNG). Through its subsidiaries, the company purchases natural gas, processes it into LNG and sells it to customers under long-term agreements and in the global LNG market. Its operations also include LNG-related infrastructure, marketing and transportation activities.

Cheniere's principal assets include the Sabine Pass LNG facility in Louisiana and the Corpus Christi LNG facility in Texas.

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