Summit Midstream Partners (NYSE:SMC) Upgraded by TD Cowen to "Strong-Buy" Rating

Key Points

• TD Cowen upgraded Summit Midstream Partners to “strong-buy.” Analysts’ consensus rating is “Moderate Buy,” with an average price target of $41.67 versus the stock’s reported $30.34 opening price.
• The company reported a quarterly loss of $0.43 per share, beating estimates for a $0.49 loss, while revenue of $139.14 million was slightly below expectations.
• Summit authorized a $35 million share-repurchase program, allowing it to buy back up to 6.5% of outstanding shares. Insiders own 42.96% of the company, while institutional investors and hedge funds own 42.97%.

Summit Midstream Partners (NYSE:SMC - Get Free Report) was upgraded by equities research analysts at TD Cowen to a "strong-buy" rating in a research note issued on Tuesday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on the stock. Summit Redstone set a $39.00 price objective on shares of Summit Midstream Partners in a research report on Monday. Weiss Ratings upgraded shares of Summit Midstream Partners from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Wednesday, May 13th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $41.67.

Summit Midstream Partners Price Performance

Summit Midstream Partners stock opened at $30.34 on Tuesday. The firm has a market cap of $617.01 million, a PE ratio of -16.14 and a beta of 0.71. The company has a debt-to-equity ratio of 1.59, a current ratio of 1.20 and a quick ratio of 1.20. The stock's fifty day moving average price is $29.65 and its two-hundred day moving average price is $29.76. Summit Midstream Partners has a one year low of $19.13 and a one year high of $33.50.

Summit Midstream Partners (NYSE:SMC - Get Free Report) last released its earnings results on Monday, May 11th. The company reported ($0.43) earnings per share for the quarter, beating analysts' consensus estimates of ($0.49) by $0.06. The firm had revenue of $139.14 million during the quarter, compared to the consensus estimate of $139.88 million. Summit Midstream Partners had a negative return on equity of 0.73% and a negative net margin of 1.09%. As a group, research analysts expect that Summit Midstream Partners will post -0.93 EPS for the current fiscal year.

Summit Midstream Partners announced that its Board of Directors has authorized a share buyback plan on Monday, June 1st that allows the company to repurchase $35.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 6.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Valeo Financial Advisors LLC bought a new position in shares of Summit Midstream Partners in the second quarter worth about $268,000. Empowered Funds LLC grew its holdings in shares of Summit Midstream Partners by 9.8% during the 1st quarter. Empowered Funds LLC now owns 89,796 shares of the company's stock valued at $2,715,000 after purchasing an additional 8,037 shares during the last quarter. Renaissance Technologies LLC acquired a new position in Summit Midstream Partners during the 1st quarter worth approximately $680,000. Public Employees Retirement System of Ohio acquired a new position in Summit Midstream Partners during the 1st quarter worth approximately $46,000. Finally, Cetera Investment Advisers lifted its stake in Summit Midstream Partners by 104.1% in the 1st quarter. Cetera Investment Advisers now owns 56,533 shares of the company's stock valued at $1,710,000 after purchasing an additional 28,840 shares during the last quarter. Institutional investors and hedge funds own 42.97% of the company's stock.

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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