June 16, 2023 – Institutional investor Natixis has made waves in the stock market by increasing its shares of DCP Midstream, LP (NYSE:DCP) by an impressive 120.9%. According to the company’s recent disclosure with the Securities & Exchange Commission, it now owns 1,472,500 shares of DCP Midstream’s stock after buying an additional 805,900 shares during the fourth quarter. This sizable investment means that Natixis now owns around 0.71% of DCP Midstream, which is worth $57,118,000 at the end of the most recent quarter.
DCP Midstream and its subsidiaries are among the leading midstream energy companies in the United States. They own and operate a range of assets across two segments – Logistics and Marketing, and Gathering and Processing. The Logistics and Marketing segment deals with transporting, trading, marketing, and storing natural gas and NGLs; while also fractionating NGLs.
On Friday June 16th , DCP Midstream opened at $41.69 – which is very close to its current 50-day moving average of $41.64 as well as its 200-day moving average of $41.12. However, over the past year DCP has seen some significant fluctuations which have seen it hit a low of $26.44 but bounce back to a high of $42.15.
When it comes to financial health; DCP currently has a current ratio of 0.91 indicating that it can pay off its short term liabilities comfortably using its current assets; it also has a quick ratio of 0.89 which highlights how capable they are of paying off their short-term debts quickly if necessary without liquidating their long-term assets such as properties or land holdings; furthermore they have decent Debt-to-Equity (D/E) ratio hovering at around 0.83 indicating that its financial risk is relatively low.
Currently, DCP Midstream boasts a market cap of $8.70 billion and a P/E ratio of 7.73 which makes it an attractive investment option for investors looking to diversify their portfolio in the energy industry. The company’s beta of 2.40 also indicates that it is highly sensitive to market movements and is considered as “risky” by many investors who consider beta score much above 1; however this can also mean an opportunity for higher return on investments for savvy investors who can handle market volatility.
Overall, Natixis’ new investment into DCP Midstream has created quite a buzz among industry experts and retail investors alike. It remains to be seen how this will pan out over the coming months but it certainly boosts DCP Midstream’s profile and confirms its position as one of the leading midstream energy companies in the USA.
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DCP Midstream: Growing Portfolio of Midstream Energy Assets and Strong Financial Performance
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”DCP” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]DCP Midstream: A Growing Portfolio of Midstream Energy Assets
DCP Midstream, LP is a leading midstream energy company in the United States. The company owns, operates, acquires and develops a portfolio of midstream energy assets, primarily involved in transporting natural gas and natural gas liquids (NGLs). According to recent data from Bloomberg, the stock currently has a consensus rating of “Hold” and an average price target of $40.80.
Recent reports revealed that several large investors have bought and sold shares of the company. Tortoise Index Solutions LLC grew its stake in DCP Midstream by 1.8% during the third quarter, now owning 86,107 shares worth $3,235,000. AlphaStar Capital Management LLC acquired a new stake in DCP Midstream during the fourth quarter worth $220,000. Fifth Lane Capital LP also acquired a new stake worth approximately $1,358,000 during the same period. Gabelli Funds LLC reportedly purchased additional shares worth about $1,711,000 over the same time frame. Spirit of America Management Corp NY meanwhile grew its stake by 1.6%, now owning 90,500 shares valued at $3,510,000.
The numbers reveal that institutional investors and hedge funds have accounted for about 35.49% of ownership thus far.
Separately StockNews.com initiated coverage on shares of DCP Midstream noting hold ratings on May 18th; seven analysts followed suit with hold recommendations while one assigned a buy rating to the stock.
DCP Midstream last reported quarterly earnings on Wednesday May 3rd with an earnings per share (EPS) report of $0.99 surpassing analysts’ consensus estimates of $0.97 by two cents showcasing revenue generation at around $2.73 billion compared to analyst predictions pointing toward roughly $3.60 billion revenue earnings from this timeframe recorded last year showing a 19.2% year-over-year drop.
Equity research analysts speculate that DCP Midstream will post an expected 4.39 earnings per share for the current fiscal year.
Regarding dividends, DCP Midstream also disclosed a quarterly dividend recently with investors issued a $0.43 dividend as of May 15th with ex-dividend status reached April 28th in payouts representing a $1.72 dividend on an annualized basis equating to a yield of 4.13%. This average dividend payout ratio currently sits at 31.91%.
DCP Midstream is financially sound and displaying consistent growth thus far. The company’s strategic goals and foresight bode well for its continued success. As such, it is worth considering as part of potential energy investment portfolios in the United States and beyond.Focused efforts toward enhancing trade, transport, marketing and storage operations are bound to generate positive returns for investors over time in making sound decisions regarding investments in energy assets and conglomerates operating within this domain appear increasingly wise as markets adjust to progressive changes both domestically and globally.
