Zacks Investment Research lowered shares of SemGroup (NYSE:SEMG) from a hold rating to a strong sell rating in a research note published on Friday.
According to Zacks, “Taking into account a number of headwinds, the investment thesis of SemGroup Corporation is revised downward to ‘Strong Sell’ from ‘Hold’. The company reported earnings miss in the last quarter and is further witnessing downward revisions in the earnings estimates for the fourth quarter. The Supply & Logistics segment of the firm, plagued by continued pressure on differentials in the key markets, is likely to drag SemGroup down. As it is, the company has narrowed its EBITDA guidance to the band of $385-$400 million, while raising its full year 2018 capex forecast to $360 million. SEMG has also lowered its targeted annual payout growth rate to a minimum of 5% till 2019 – significantly lower than the prior guidance of 10%. These factors have dampened the investors’ sentiments. The high leverage of 63% further limits the financial flexibility of the firm. As such SEMG is currently viewed as a risky bet. “
Several other brokerages have also recently issued reports on SEMG. ValuEngine raised shares of SemGroup from a sell rating to a hold rating in a research note on Thursday. Goldman Sachs Group raised shares of SemGroup from a sell rating to a neutral rating in a research note on Wednesday, January 2nd. Morgan Stanley dropped their price objective on shares of SemGroup from $26.00 to $24.00 and set an equal weight rating for the company in a research note on Friday, November 30th. Wells Fargo & Co reaffirmed a hold rating on shares of SemGroup in a research note on Tuesday, November 13th. Finally, Barclays reaffirmed a hold rating and set a $25.00 price objective on shares of SemGroup in a research note on Friday, October 12th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and three have assigned a buy rating to the company. The company has an average rating of Hold and a consensus target price of $25.78.
SEMG opened at $16.79 on Friday. SemGroup has a fifty-two week low of $12.86 and a fifty-two week high of $30.35. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.17 and a quick ratio of 1.10. The firm has a market capitalization of $1.33 billion, a price-to-earnings ratio of -69.96, a PEG ratio of 7.52 and a beta of 1.78.
SemGroup (NYSE:SEMG) last released its earnings results on Wednesday, November 7th. The pipeline company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.09). The company had revenue of $634.00 million for the quarter, compared to analysts’ expectations of $586.71 million. SemGroup had a positive return on equity of 0.32% and a negative net margin of 0.99%. The firm’s revenue for the quarter was up 16.1% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.25) EPS. As a group, equities analysts anticipate that SemGroup will post -0.12 EPS for the current year.
In other news, Director William J. Mcadam acquired 15,000 shares of the company’s stock in a transaction on Monday, November 19th. The shares were bought at an average cost of $16.57 per share, with a total value of $248,550.00. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 0.79% of the company’s stock.
Large investors have recently made changes to their positions in the business. SG Americas Securities LLC purchased a new position in shares of SemGroup in the 2nd quarter valued at $165,000. Public Employees Retirement Association of Colorado grew its position in shares of SemGroup by 69.3% in the 3rd quarter. Public Employees Retirement Association of Colorado now owns 8,768 shares of the pipeline company’s stock valued at $193,000 after buying an additional 3,589 shares during the last quarter. Private Advisor Group LLC purchased a new position in shares of SemGroup in the 3rd quarter valued at $212,000. Gator Capital Management LLC acquired a new stake in SemGroup during the 3rd quarter worth $287,000. Finally, Verition Fund Management LLC acquired a new stake in SemGroup during the 2nd quarter worth $380,000. 98.23% of the stock is currently owned by institutional investors.
SemGroup Company Profile
SemGroup Corporation provides gathering, transportation, storage, distribution, marketing, and other midstream services for producers, refiners of petroleum products, and other market participants. Its Crude Transportation segment operates crude oil pipelines and truck transportation businesses. It operates a 455-mile crude oil gathering and transportation pipeline system in Kansas and northern Oklahoma; a 75-mile crude oil gathering pipeline system that transports crude oil from production facilities in the DJ Basin to the pipeline owned by White Cliffs Pipeline, LLC; a 527-mile pipeline that transports crude oil from Platteville, Colorado to Cushing, Oklahoma; and 3 pipelines with an aggregate of 106 miles of pipe, as well as crude oil trucking fleet of 215 transport trucks and 210 trailers.
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