Enerflex (NYSE:EFXT) Shares Gap Up - Here's Why

Key Points

• Enerflex shares jumped 12.7%, opening at $25.73 versus a prior close of $24.08 and later trading near $27.60.
• Analyst views are mixed, but the consensus remains “Moderate Buy” with an average price target of $36.67; CIBC recently raised its target to $32 while other firms issued downgrades.
• The company missed quarterly expectations, reporting $0.25 in adjusted earnings per share versus the $0.31 estimate and revenue of $582 million versus $606.78 million expected. Enerflex also maintains a modest 0.6% dividend yield, while institutional investors own 46.47% of its shares.

Shares of Enerflex Ltd. (NYSE:EFXT - Get Free Report) gapped up before the market opened on Tuesday. The stock had previously closed at $24.08, but opened at $25.73. Enerflex shares last traded at $27.6030, with a volume of 174,264 shares.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Wall Street Zen downgraded Enerflex from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Zacks Research cut shares of Enerflex from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. Acumen Capital raised shares of Enerflex to a "strong-buy" rating in a research note on Friday, October 2nd. Weiss Ratings raised shares of Enerflex from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday. Finally, Canadian Imperial Bank of Commerce upped their price objective on shares of Enerflex from $30.00 to $32.00 and gave the stock a "neutral" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $36.67.

Enerflex Trading Up 12.7%

The company's 50 day moving average price is $22.15 and its two-hundred day moving average price is $23.47. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.19 and a quick ratio of 0.86. The stock has a market capitalization of $3.31 billion, a PE ratio of 63.42 and a beta of 1.80.

Enerflex (NYSE:EFXT - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.31 by ($0.06). The business had revenue of $582.00 million for the quarter, compared to analyst estimates of $606.78 million. Enerflex had a return on equity of 11.76% and a net margin of 2.06%. As a group, analysts expect that Enerflex Ltd. will post 1.34 earnings per share for the current year.

Enerflex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 2nd. Stockholders of record on Wednesday, August 19th were issued a dividend of C$0.04 per share. This represents a $0.17 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Wednesday, August 19th. Enerflex's payout ratio is currently 27.91%.

Institutional Investors Weigh In On Enerflex

Large investors have recently made changes to their positions in the stock. Wellington Altus USA Inc. purchased a new stake in Enerflex in the 2nd quarter valued at $185,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Enerflex in the 2nd quarter worth $79,000. TD Waterhouse Canada Inc. increased its stake in shares of Enerflex by 74.7% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 558,010 shares of the company's stock worth $13,170,000 after acquiring an additional 238,574 shares during the last quarter. Hennessy Advisors Inc. acquired a new position in shares of Enerflex during the 2nd quarter valued at about $8,500,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of Enerflex in the second quarter valued at about $4,219,000. 46.47% of the stock is currently owned by hedge funds and other institutional investors.

Enerflex Company Profile

Enerflex Ltd. NYSE: EFXT is a global provider of natural gas infrastructure and energy solutions. The company designs, engineers, manufactures, commissions and operates equipment and facilities used to process, compress, treat and transport natural gas and other hydrocarbons.

Its products and services include natural gas compression, gas processing and treating systems, refrigeration and power-generation equipment, and related engineering, procurement and construction services. Enerflex also provides aftermarket support, including parts, maintenance, technical services and contract operations for energy infrastructure.

Headquartered in Calgary, Alberta, Enerflex serves energy producers and infrastructure operators across multiple international markets, including North America, Latin America, the Middle East and Australia.

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