Cheniere Energy (NYSE:LNG) Shares Gap Down on Disappointing Earnings

Cheniere Energy, Inc. (NYSE:LNG) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $261.42, but opened at $240.16. Cheniere Energy shares last traded at $245.4870, with a volume of 782,886 shares changing hands.

The energy company reported ($16.65) earnings per share (EPS) for the quarter, missing the consensus estimate of $4.25 by ($20.90). The company had revenue of $5.87 billion for the quarter, compared to analysts’ expectations of $5.69 billion. Cheniere Energy had a net margin of 26.68% and a return on equity of 32.04%. The business’s revenue for the quarter was up 7.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.57 earnings per share.

Cheniere Energy Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Monday, May 11th will be given a dividend of $0.555 per share. The ex-dividend date is Monday, May 11th. This represents a $2.22 dividend on an annualized basis and a dividend yield of 0.9%. Cheniere Energy’s dividend payout ratio (DPR) is currently 9.14%.

Cheniere Energy announced that its Board of Directors has authorized a share repurchase plan on Thursday, February 26th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the energy company to repurchase up to 21.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Morgan Stanley decreased their price target on shares of Cheniere Energy from $313.00 to $308.00 and set an “overweight” rating for the company in a research report on Tuesday, April 21st. Bank of America boosted their price target on shares of Cheniere Energy from $296.00 to $322.00 and gave the stock a “buy” rating in a report on Friday, March 20th. Scotiabank boosted their price target on shares of Cheniere Energy from $285.00 to $288.00 and gave the stock an “outperform” rating in a report on Thursday, April 16th. Wells Fargo & Company lowered their price target on shares of Cheniere Energy from $280.00 to $271.00 and set an “overweight” rating for the company in a report on Friday, March 13th. Finally, Barclays boosted their price target on shares of Cheniere Energy from $259.00 to $271.00 and gave the stock an “overweight” rating in a report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Cheniere Energy has an average rating of “Moderate Buy” and a consensus price target of $295.56.

Insider Buying and Selling at Cheniere Energy

In related news, EVP Sean N. Markowitz sold 22,246 shares of the company’s stock in a transaction on Thursday, March 26th. The shares were sold at an average price of $290.98, for a total value of $6,473,141.08. Following the completion of the sale, the executive vice president owned 64,000 shares in the company, valued at $18,622,720. This represents a 25.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Zach Davis sold 29,000 shares of the company’s stock in a transaction on Monday, March 30th. The shares were sold at an average price of $300.00, for a total transaction of $8,700,000.00. Following the completion of the sale, the chief financial officer owned 87,146 shares of the company’s stock, valued at approximately $26,143,800. This trade represents a 24.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.55% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cheniere Energy

A number of large investors have recently bought and sold shares of LNG. Viking Fund Management LLC lifted its position in Cheniere Energy by 66.7% during the fourth quarter. Viking Fund Management LLC now owns 45,000 shares of the energy company’s stock valued at $8,748,000 after buying an additional 18,000 shares in the last quarter. M&G PLC lifted its position in Cheniere Energy by 49.6% during the third quarter. M&G PLC now owns 556,285 shares of the energy company’s stock valued at $130,727,000 after buying an additional 184,520 shares in the last quarter. Waverton Investment Management Ltd lifted its position in Cheniere Energy by 35.3% during the third quarter. Waverton Investment Management Ltd now owns 196,819 shares of the energy company’s stock valued at $46,244,000 after buying an additional 51,326 shares in the last quarter. Trivium Point Advisory LLC lifted its position in Cheniere Energy by 38.8% during the fourth quarter. Trivium Point Advisory LLC now owns 56,930 shares of the energy company’s stock valued at $11,067,000 after buying an additional 15,927 shares in the last quarter. Finally, Allianz Asset Management GmbH lifted its position in Cheniere Energy by 12.6% during the third quarter. Allianz Asset Management GmbH now owns 1,460,762 shares of the energy company’s stock valued at $343,250,000 after buying an additional 163,861 shares in the last quarter. Hedge funds and other institutional investors own 87.26% of the company’s stock.

Cheniere Energy Trading Down 6.0%

The stock has a market capitalization of $51.65 billion, a price-to-earnings ratio of 10.13 and a beta of 0.07. The company has a debt-to-equity ratio of 1.74, a current ratio of 0.94 and a quick ratio of 0.81. The business’s 50-day simple moving average is $263.22 and its two-hundred day simple moving average is $226.53.

About Cheniere Energy

Cheniere Energy, Inc is a U.S.-based energy company that develops, owns and operates liquefied natural gas (LNG) infrastructure and markets LNG to global customers. The company’s core activities include natural gas liquefaction, long?term and short?term LNG sales and marketing, and the associated midstream services required to move gas from production basins to international markets. Cheniere focuses on converting domestic natural gas into LNG for export, providing a bridge between North American supply and overseas demand.

Cheniere’s principal operating assets are large-scale LNG export terminals located on the U.S.