Summit Midstream Partners (NYSE:SMC) Share Price Breaks Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Summit Midstream Partners’ shares fell 4.8% and dropped below their 200-day moving average of $30.61, trading as low as $29.47 and last at $29.5080.
• Despite the technical weakness, analysts remain broadly positive: the stock has a consensus “Buy” rating and a $43.00 average price target, well above its recent trading level.
• The company beat quarterly EPS expectations by $0.47 but missed revenue estimates, while its financial profile remains challenging with negative net margin and return on equity; insiders own 42.96% of shares, and institutional investors have recently added positions.

Summit Midstream Partners, LP (NYSE:SMC - Get Free Report)'s share price crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $30.61 and traded as low as $29.47. Summit Midstream Partners shares last traded at $29.5080, with a volume of 88,995 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Weiss Ratings upgraded shares of Summit Midstream Partners from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 21st. TD Cowen lifted their price target on shares of Summit Midstream Partners from $39.00 to $43.00 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Zacks Research raised shares of Summit Midstream Partners from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 2nd. Finally, Summit Redstone set a $39.00 price objective on shares of Summit Midstream Partners in a research note on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Summit Midstream Partners has a consensus rating of "Buy" and a consensus target price of $43.00.

Summit Midstream Partners Stock Down 4.8%

The firm has a market cap of $599.31 million, a price-to-earnings ratio of -26.58 and a beta of 0.80. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.45. The firm has a fifty day moving average price of $32.19 and a 200-day moving average price of $30.61.

Summit Midstream Partners (NYSE:SMC - Get Free Report) last released its earnings results on Monday, August 10th. The company reported $0.11 EPS for the quarter, beating the consensus estimate of ($0.36) by $0.47. Summit Midstream Partners had a negative return on equity of 0.04% and a negative net margin of 0.06%. The firm had revenue of $155.01 million during the quarter, compared to analyst estimates of $169.00 million. As a group, sell-side analysts forecast that Summit Midstream Partners, LP will post 0.40 EPS for the current year.

Insider Buying and Selling

In other Summit Midstream Partners news, VP James Johnston sold 2,600 shares of Summit Midstream Partners stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $30.51, for a total value of $79,326.00. Following the completion of the sale, the vice president owned 72,757 shares in the company, valued at $2,219,816.07. The trade was a 3.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 42.96% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. State Street Corp increased its position in Summit Midstream Partners by 3.3% during the second quarter. State Street Corp now owns 184,546 shares of the company's stock worth $5,256,000 after purchasing an additional 5,939 shares during the last quarter. Engineers Gate Manager LP acquired a new position in shares of Summit Midstream Partners in the 2nd quarter valued at $305,000. Squarepoint Ops LLC acquired a new position in shares of Summit Midstream Partners in the 2nd quarter valued at $238,000. Odyssean LLC purchased a new stake in shares of Summit Midstream Partners during the 2nd quarter valued at $448,000. Finally, Ancora Advisors LLC purchased a new stake in shares of Summit Midstream Partners during the 2nd quarter valued at $143,000. 42.97% of the stock is currently owned by hedge funds and other institutional investors.

About Summit Midstream Partners

Summit Midstream Partners, known as Summit Midstream Corporation following its corporate reorganization, is a midstream energy company that develops, owns and operates infrastructure used to gather and process natural gas, crude oil and produced water. The company primarily provides fee-based services to exploration and production companies, connecting wells to processing plants, pipelines and other downstream markets.

Its assets have historically included natural gas gathering and processing systems, crude oil and produced-water gathering infrastructure, and related pipelines and facilities.

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