In a surprising move, Strs Ohio has significantly reduced its holdings in Antero Midstream Co. (NYSE:AM) during the first quarter of this year. According to the company’s recent filing with the Securities and Exchange Commission, Strs Ohio sold 20,820 shares of the pipeline company’s stock, resulting in an 11.8% decrease in its overall holdings. At the end of the quarter, Strs Ohio was left with 155,070 shares of Antero Midstream, which translated to a total value of $1,626,000.
This strategic decision by Strs Ohio raises some perplexing questions about their stance on Antero Midstream. Considering that the company has been performing relatively well in recent times, it is intriguing to see why Strs Ohio opted to divest a significant portion of its holdings. Antero Midstream is known for its impressive portfolio in pipeline transportation and storage assets that support its parent company’s exploration and production activities. With such strong fundamentals, one has to wonder what factors influenced Strs Ohio’s unconventional move.
Additionally, it is worth noting that Antero Midstream recently disclosed a quarterly dividend payment scheduled for August 9th. Shareholders who were recorded as of July 26th will receive a $0.225 dividend per share. This brings the annualized dividend payout to $0.90 per share with a compelling yield rate of 7.59%. However, what makes this disclosure all the more intriguing is that it puts Antero Midstream’s dividend payout ratio at an astonishing 130.43%, which could be a cause for concern.
In light of these developments, several research firms have begun analyzing and reporting on Antero Midstream’s prospects. StockNews.com notably downgraded their rating on the company from “buy” to “hold” on July 4th, indicating some potential issues that investors should be aware of. UBS Group, on the other hand, recently initiated coverage on Antero Midstream, assigning a “buy” rating and setting a price objective of $14.00 per share. It is evident that analysts are divided in their assessments of the company’s performance.
Overall, with Strs Ohio’s unexpected reduction in holdings, the substantial dividend payout ratio, and mixed ratings from research firms, the current state of Antero Midstream presents a perplexing situation for investors. Each aspect adds to the complexity surrounding the company’s future prospects and potential risks. As such, it would be wise for investors to closely monitor any forthcoming developments and carefully consider their investment decisions.
As we navigate through this increasingly convoluted market environment, it is important to remember that no investment comes without its degree of uncertainty. The average price target of $12.33 derived from Bloomberg.com serves as a rough guide but should not be solely relied upon when making investment decisions. In these tumultuous times, thorough research and analysis will undoubtedly be key for any investor seeking to make informed choices about Antero Midstream or any other stock for that matter.
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Antero Midstream Co. Attracts Hedge Funds and Institutional Investors, Raises Caution with Insider Transactions
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”AM” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Antero Midstream Co., a pipeline company listed on the New York Stock Exchange (NYSE: AM), has attracted the attention of multiple hedge funds and institutional investors in recent months. Firms such as Fort Washington Investment Advisors, Sourcerock Group, Hennessy Advisors, Donoghue Forlines, and Tortoise Index Solutions have all increased their holdings in the company.
Fort Washington Investment Advisors Inc. OH, for instance, grew its position in Antero Midstream by 3.5% during the fourth quarter of the previous fiscal year. The firm now owns 208,968 shares of the company’s stock valued at $2,255,000 after purchasing an additional 7,000 shares during that period. Similarly, Sourcerock Group LLC boosted its holdings by 28.5% during the same quarter and now owns 64,250 shares worth $693,000.
Hennessy Advisors Inc. also increased its holdings by 7.0% during the fourth quarter, adding an additional 25,700 shares to its portfolio valued at $4,231,000. Furthermore, Donoghue Forlines LLC raised its holdings by a significant 82.4%, acquiring an extra 21,234 shares worth $507,000.
The fact that various high-profile hedge funds and institutional investors are showing confidence in Antero Midstream is noteworthy and can indicate positive prospects for the future performance of the company.
In terms of insider trading activity within Antero Midstream Co., Sheri Pearce – an insider – recently sold 19,600 shares of the business’s stock at an average price of $10.25 per share on June 1st this year. Following this transaction, Pearce now directly possesses 155,267 shares valued at approximately $1,591,486.75.
Just a few days prior to Pearce’s sale of stocks; on May 5th; Michael N. Kennedy, another insider, sold 300,000 shares of Antero Midstream Co.’s stock at an average price of $10.47 per share. Kennedy’s transaction resulted in him owning 1,060,730 shares worth $11,105,843.10.
These recent sales made by insiders need to be monitored with caution by investors as they could indicate a lack of confidence in the company’s future growth potential.
In addition to these developments, Antero Midstream also recently announced a quarterly dividend. Shareholders who are on record on July 26th will receive a dividend payment of $0.225 per share on August 9th. This represents an annualized dividend value of $0.90 and a yield of approximately 7.59%. It is important to note that the company’s current dividend payout ratio stands at an unusually high 130.43%.
As for the company’s financial standing and market performance, Antero Midstream Co. currently has a market capitalization of $5.69 billion and a relatively high price-to-earnings (P/E) ratio of 17.19. The stock’s beta stands at 2.35.
Antero Midstream Co.’s one-year range spans from a low point of $8.80 to a high point of $12.13 – indicating moderate volatility in its stock price over the past year.
Regarding its debt structure and liquidity position, the company has a debt-to-equity ratio of 1.53 and exhibits both a current ratio and quick ratio of 1.02 each.
In terms of its earnings performance, Antero Midstream Co.’s last reported EPS (earnings per share) stood at $0.21 for the previous fiscal quarter ending April 26th – surpassing analysts’ consensus estimates by an impressive $0.02 per share.
Furthermore, Antero Midstream boasted a return on equity (ROE) of 17.56% during the same period and an impressive net margin of 34.62%. The company reported revenue of $259.48 million for that quarter, exceeding expectations set at $249.58 million by financial analysts.
Based on the current market conditions and analyst predictions, Antero Midstream Co. is projected to post EPS of approximately $0.81 for the current fiscal year.
In conclusion, Antero Midstream Co.’s recent activity with various hedge funds and institutional investors can indicate a positive outlook for the company’s future growth potential. However, it is important to remain cautious about insider transactions as they may suggest lackluster confidence in the company’s prospects. With significant market capitalization and moderate volatility, Antero Midstream Co.’s earnings performance and solid financial metrics position it as an interesting stock to watch in the coming months.
Note: All information presented here is accurate as of July 20, 2023, based on publicly available information filed with the Securities & Exchange Commission (SEC).
