EnLink Midstream (NYSE:ENLC) Hits New 52-Week Low on Disappointing Earnings

EnLink Midstream LLC (NYSE:ENLC) shares hit a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $6.08 and last traded at $6.08, with a volume of 96795 shares changing hands. The stock had previously closed at $6.26.

The pipeline company reported $0.02 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.07 by ($0.05). EnLink Midstream had a negative net margin of 3.21% and a negative return on equity of 0.16%. The firm had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.77 billion. During the same period in the previous year, the company posted $0.04 EPS. The firm’s revenue for the quarter was down 33.4% on a year-over-year basis.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 13th. Shareholders of record on Monday, October 28th will be paid a $0.283 dividend. This represents a $1.13 annualized dividend and a yield of 19.86%. The ex-dividend date is Friday, October 25th. EnLink Midstream’s payout ratio is presently -1,614.29%.

ENLC has been the subject of several recent analyst reports. UBS Group downgraded shares of EnLink Midstream from a “buy” rating to a “neutral” rating and lowered their target price for the company from $10.00 to $7.00 in a research note on Tuesday, October 8th. Mitsubishi UFJ Financial Group downgraded shares of EnLink Midstream from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $15.00 to $10.00 in a research note on Wednesday, August 7th. Mizuho initiated coverage on shares of EnLink Midstream in a research note on Thursday, July 25th. They issued a “neutral” rating and a $11.50 target price for the company. Royal Bank of Canada reaffirmed a “buy” rating and issued a $12.00 target price on shares of EnLink Midstream in a research note on Sunday, August 11th. Finally, Zacks Investment Research downgraded shares of EnLink Midstream from a “hold” rating to a “sell” rating in a research note on Tuesday, October 8th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and three have issued a buy rating to the company. EnLink Midstream presently has an average rating of “Hold” and an average target price of $10.59.

In related news, Director Kyle D. Vann purchased 20,000 shares of EnLink Midstream stock in a transaction dated Monday, August 12th. The stock was bought at an average price of $7.44 per share, for a total transaction of $148,800.00. Following the completion of the acquisition, the director now directly owns 99,907 shares of the company’s stock, valued at $743,308.08. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Chairman Barry E. Davis purchased 136,700 shares of EnLink Midstream stock in a transaction dated Tuesday, August 13th. The stock was bought at an average price of $7.32 per share, with a total value of $1,000,644.00. Following the acquisition, the chairman now directly owns 1,892,372 shares of the company’s stock, valued at $13,852,163.04. The disclosure for this purchase can be found here. 1.45% of the stock is owned by corporate insiders.

Several institutional investors have recently added to or reduced their stakes in ENLC. Arlington Partners LLC acquired a new position in shares of EnLink Midstream in the second quarter valued at approximately $30,000. Valeo Financial Advisors LLC acquired a new position in shares of EnLink Midstream in the second quarter valued at approximately $35,000. Cullen Frost Bankers Inc. boosted its holdings in shares of EnLink Midstream by 34.7% in the second quarter. Cullen Frost Bankers Inc. now owns 4,648 shares of the pipeline company’s stock valued at $47,000 after buying an additional 1,198 shares during the period. M&T Bank Corp acquired a new position in shares of EnLink Midstream in the second quarter valued at approximately $103,000. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors acquired a new position in shares of EnLink Midstream in the second quarter valued at approximately $108,000. Institutional investors own 45.96% of the company’s stock.

The company has a market cap of $3.20 billion, a price-to-earnings ratio of -81.43, a PEG ratio of 6.32 and a beta of 2.03. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.93. The company’s fifty day moving average price is $7.32 and its two-hundred day moving average price is $9.14.

EnLink Midstream Company Profile (NYSE:ENLC)

EnLink Midstream, LLC focuses on providing midstream energy services in the United States. It operates through Texas, Oklahoma, Louisiana, and Crude and Condensate segments. The company is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, as well as providing brine disposal services.

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