EnLink Midstream Coverage Initiated at StockNews.com

On Monday morning, StockNews.com began covering shares of EnLink Midstream (NYSE:ENLC). In their research note to investors, they assigned a hold rating to the pipeline company's stock.

A number of other analysts have also provided their views on ENLC. For instance, Capital One Financial maintained an 'equal weight' rating and set a price target of $16.00 in a report dated September 3rd. Another report from Raymond James on November 8th involved a downgrade of EnLink Midstream, changing its recommendation from 'outperform' to 'market perform'. Mizuho also expressed a cautious outlook, reiterating a 'neutral' rating with a target price of $15.00 in a report released on October 31st. Additionally, Royal Bank of Canada reaffirmed its 'sector perform' rating and set a price target of $15.00 on November 21st. On November 26th, US Capital Advisors downgraded the stock from a 'moderate buy' to a 'hold'. Currently, a total of eleven investment analysts have rated the stock as a hold, while two analysts have given it a buy rating and one assigned a strong buy rating. MarketBeat’s data reveals that EnLink Midstream holds a consensus rating of 'Hold' with an average target price of $15.40.

Current Stock Status

As of Monday, shares of NYSE ENLC opened at $14.20. The company has a 50-day moving average of $15.01 and a 200-day moving average of $14.26. With a market capitalization of $6.49 billion, EnLink Midstream has a price-to-earnings ratio of 67.62 and a beta of 2.44. Notably, the stock has varied between a 1-year low of $11.53 and a high of $16.40. The current debt-to-equity ratio for the company stands at 2.30, with both the current and quick ratios at 0.42.

Quarterly Earnings Overview

EnLink Midstream reported its quarterly earnings results on November 6th. For the quarter, the pipeline company recorded earnings of ($0.03) per share, which fell short of analysts’ expectations of $0.13 by $0.16. The company's net margin was 1.96%, and it achieved a return on equity of 9.51%. The reported revenue for the quarter amounted to $1.61 billion, considerably lower than the analyst estimates of $1.98 billion. This revenue figure reflects a 7.9% drop compared to the same period last year when the company earned $0.10 earnings per share. Analysts predict a forecasted earnings per share of 0.51 for the current fiscal year.

Dividend Announcement

In a related development, EnLink Midstream disclosed a quarterly dividend that was paid on November 14th. Shareholders on record as of November 1st received a dividend of $0.1325. This equates to an annualized dividend of $0.53, resulting in a yield of 3.73%. However, the company’s dividend payout ratio is currently quite high at 252.38%.

Insider Transactions

In recent insider news, major shareholder Infrastructure Investor Global sold a substantial 200,340,753 shares of EnLink's stock on October 15th, with the sale occurring at an average price of $14.90. The total transaction was valued at approximately $2.99 billion and was reported in a legal filing with the Securities & Exchange Commission. Currently, insiders hold about 0.84% of the company's stock.

Institutional Investment Activity

Recent trends show a variety of institutional investors and hedge funds engaging with shares of ENLC. For example, Merewether Investment Management LP acquired a new stake in EnLink during the third quarter worth about $64.48 million. In addition, HITE Hedge Asset Management LLC significantly increased its holdings by 2,629.4%, now owning 2,002,935 shares valued at $27.56 million. Brookfield Corp ON also made headlines by growing its stake in EnLink by 97.1% in the third quarter. Catalyst Capital Advisors LLC and CUSHING ASSET MANAGEMENT LP also increased their holdings in EnLink Midstream during this time. Overall, institutional investors and hedge funds now own approximately 45.87% of the company's Outstanding stock.

Company Background

EnLink Midstream, LLC specializes in providing midstream energy services across the United States. The company operates through several segments, including Permian, Louisiana, Oklahoma, North Texas, and Corporate sectors. Their portfolio of services involves gathering, compressing, treating, processing, transporting, storing, and selling natural gas, as well as managing natural gas liquids and crude oil transportation and storage.

EnLink, Midstream, Stocks