Summit Midstream Partners (NYSE:SMC) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Summit Midstream beat quarterly estimates: EPS was $0.58 versus the $0.12 consensus, while revenue of $183.01 million exceeded expectations of $158.60 million. Shares opened at $30.00, up from the prior close of $27.96, and last traded at $30.06.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $43.00; TD Cowen raised its target to $43.00 and maintained a Buy rating.
• Despite the earnings beat, the company reported a slightly negative net margin of 0.06% and negative return on equity of 0.04%.

Summit Midstream Partners, LP (NYSE:SMC - Get Free Report) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $27.96, but opened at $30.00. Summit Midstream Partners shares last traded at $30.06, with a volume of 20,743 shares traded.

The company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.46. The company had revenue of $183.01 million for the quarter, compared to analysts' expectations of $158.60 million. Summit Midstream Partners had a negative net margin of 0.06% and a negative return on equity of 0.04%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. TD Cowen raised their target price on shares of Summit Midstream Partners from $39.00 to $43.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Weiss Ratings upgraded Summit Midstream Partners from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 21st. Zacks Research lowered Summit Midstream Partners from a "strong-buy" rating to a "hold" rating in a research report on Monday, November 2nd. Finally, Summit Redstone set a $39.00 price target on Summit Midstream Partners in a report on Monday, August 3rd. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $43.00.

Insider Buying and Selling at Summit Midstream Partners

In other news, VP James Johnston sold 2,600 shares of the firm's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $30.51, for a total transaction 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. This trade represents a 3.45% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 42.96% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Simplex Trading LLC lifted its stake in shares of Summit Midstream Partners by 6,428.6% in the 3rd quarter. Simplex Trading LLC now owns 914 shares of the company's stock valued at $28,000 after purchasing an additional 900 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new stake in shares of Summit Midstream Partners during the 1st quarter worth about $46,000. Ancora Advisors LLC acquired a new stake in shares of Summit Midstream Partners during the 2nd quarter worth about $143,000. Squarepoint Ops LLC acquired a new stake in shares of Summit Midstream Partners during the 2nd quarter worth about $238,000. Finally, Valeo Financial Advisors LLC purchased a new stake in Summit Midstream Partners in the 2nd quarter valued at about $268,000. 42.97% of the stock is currently owned by hedge funds and other institutional investors.

Summit Midstream Partners Stock Performance

The firm's fifty day moving average is $31.60 and its 200-day moving average is $30.64. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.45. The stock has a market capitalization of $614.38 million, a PE ratio of -27.25 and a beta of 0.88.

Summit Midstream Partners Company Profile

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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