Summit Midstream Partners (NYSE:SMC) Issues Quarterly Earnings Results

Key Points

• Summit Midstream Partners beat earnings expectations, reporting quarterly EPS of $0.11 versus the consensus estimate of a $0.36 loss. Revenue was $155.01 million, below the $169 million estimate.
• The company’s board approved a $35 million stock buyback, authorizing repurchases of up to 6.5% of outstanding shares. SMC shares rose to $31.69, near the upper end of their 12-month range.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $41.67, while insiders own nearly 43% of the company and recently reported share sales.

Summit Midstream Partners (NYSE:SMC - Get Free Report) announced its quarterly earnings results on Monday. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of ($0.36) by $0.47, Zacks reports. The company had revenue of $155.01 million for the quarter, compared to the consensus estimate of $169.00 million. Summit Midstream Partners had a negative return on equity of 0.73% and a negative net margin of 1.09%.

Summit Midstream Partners Stock Performance

SMC traded up $1.34 on Monday, reaching $31.69. The stock had a trading volume of 65,090 shares, compared to its average volume of 61,567. Summit Midstream Partners has a 12-month low of $19.13 and a 12-month high of $33.50. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 1.59. The business's 50-day moving average price is $29.82 and its two-hundred day moving average price is $29.84. The company has a market cap of $644.57 million, a P/E ratio of -16.86 and a beta of 0.71.

Summit Midstream Partners announced that its board has approved a stock buyback plan on Monday, June 1st that permits the company to buyback $35.00 million in outstanding shares. This buyback authorization permits the company to buy up to 6.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Insider Activity

In other news, Director Jerry L. Peters sold 10,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $32.00, for a total transaction of $320,000.00. Following the sale, the director directly owned 16,979 shares of the company's stock, valued at $543,328. This represents a 37.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP James David Johnston sold 2,600 shares of the firm's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $29.72, for a total value of $77,272.00. Following the sale, the vice president owned 75,357 shares in the company, valued at $2,239,610.04. This trade represents a 3.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 42.96% of the company's stock.

Hedge Funds Weigh In On Summit Midstream Partners

A number of hedge funds have recently bought and sold shares of SMC. Hsbc Holdings PLC acquired a new stake in Summit Midstream Partners in the fourth quarter valued at approximately $250,000. Invesco Ltd. lifted its position in shares of Summit Midstream Partners by 0.3% during the 4th quarter. Invesco Ltd. now owns 971,063 shares of the company's stock valued at $25,908,000 after buying an additional 2,983 shares in the last quarter. Empowered Funds LLC lifted its position in shares of Summit Midstream Partners by 10.8% during the 4th quarter. Empowered Funds LLC now owns 81,759 shares of the company's stock valued at $2,181,000 after buying an additional 7,953 shares in the last quarter. XTX Topco Ltd purchased a new position in shares of Summit Midstream Partners during the 4th quarter valued at approximately $531,000. Finally, Bridgeway Capital Management LLC grew its stake in Summit Midstream Partners by 7.8% in the 4th quarter. Bridgeway Capital Management LLC now owns 109,759 shares of the company's stock valued at $2,928,000 after acquiring an additional 7,953 shares during the period. Hedge funds and other institutional investors own 42.97% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Weiss Ratings upgraded Summit Midstream Partners from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Wednesday, May 13th. Summit Redstone set a $39.00 price target on Summit Midstream Partners in a research report on Monday, August 3rd. Finally, TD Cowen assumed coverage on Summit Midstream Partners in a report on Tuesday, August 4th. They issued a "buy" rating and a $39.00 price target for the company. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $41.67.

Summit Midstream Partners Company Profile

Summit Midstream Partners is a publicly traded master limited partnership that provides gathering, compression, processing and transportation services for natural gas, natural gas liquids (NGLs) and crude oil in key U.S. onshore basins. The company's assets include a network of intrastate and interstate pipelines, processing plants, fractionators and storage facilities designed to serve producers, marketers and end users throughout the Appalachian, Gulf Coast, Mid-Continent and Western Canadian Sedimentary basins.

In the Appalachian region, Summit operates extensive gathering lines and multiple gas-processing complexes connected to the Mountaineer NGL Hub, one of the largest fractionation and storage hubs in the Mid-Atlantic.

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