Zacks Investment Research downgraded shares of NuStar Energy (NYSE:NS) from a hold rating to a sell rating in a research note released on Friday morning.
According to Zacks, “Considering NuStar Energy's weak distribution coverage and guidance for reduced investor payout, we have turned bearish on the partnership. NuStar recently reported weaker-than-expected fourth-quarter earnings due to a light quarter from the ‘Pipeline’ segment, amid higher operating and depreciation costs, as well as lower products sale in the Fuels Marketing unit. Worryingly, the distribution coverage ratio dipped to a dismal 0.41x in the fourth quarter – down from 1.02x a year ago. Investor sentiment took a further beating after the partnership announced plans to reduce its quarterly distribution as part of the impending merger with its general partner. As it is, NuStar's debt-to-equity ratio of nearly 2 is significantly above the industry average. In the wake of these apprehensions, we see little reason for investors to hold the stock.”
Several other research analysts have also weighed in on the stock. Mizuho reissued a hold rating and set a $47.00 price objective on shares of NuStar Energy in a report on Friday, October 20th. ValuEngine lowered shares of NuStar Energy from a hold rating to a sell rating in a report on Friday, February 2nd. Citigroup lowered shares of NuStar Energy from a buy rating to a neutral rating and set a $33.00 price objective for the company. in a report on Friday, February 2nd. They noted that the move was a valuation call. Stifel Nicolaus decreased their price objective on shares of NuStar Energy from $42.00 to $35.00 and set a hold rating for the company in a report on Wednesday, November 8th. Finally, Barclays decreased their price objective on shares of NuStar Energy from $44.00 to $40.00 and set an equal weight rating for the company in a report on Wednesday, November 8th. Three analysts have rated the stock with a sell rating, eleven have assigned a hold rating and one has issued a buy rating to the stock. NuStar Energy has a consensus rating of Hold and a consensus target price of $34.60.
NuStar Energy (NYSE:NS) last released its quarterly earnings results on Thursday, February 8th. The pipeline company reported $0.00 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.17 by ($0.17). The company had revenue of $450.50 million for the quarter, compared to analyst estimates of $435.46 million. The company’s quarterly revenue was down 4.5% on a year-over-year basis. During the same period last year, the firm posted $0.31 earnings per share. equities analysts anticipate that NuStar Energy will post 1.14 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Tuesday, February 13th. Stockholders of record on Thursday, February 8th were issued a $1.095 dividend. This represents a $4.38 annualized dividend and a dividend yield of 18.14%. The ex-dividend date of this dividend was Wednesday, February 7th. NuStar Energy’s dividend payout ratio (DPR) is presently 634.78%.
Several hedge funds and other institutional investors have recently bought and sold shares of NS. Brookfield Asset Management Inc. acquired a new position in shares of NuStar Energy in the 4th quarter valued at about $131,694,000. Goldman Sachs Group Inc. boosted its holdings in shares of NuStar Energy by 28.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 4,396,963 shares of the pipeline company’s stock valued at $131,690,000 after buying an additional 962,576 shares during the period. Alps Advisors Inc. boosted its holdings in shares of NuStar Energy by 11.3% in the 3rd quarter. Alps Advisors Inc. now owns 6,422,266 shares of the pipeline company’s stock valued at $260,680,000 after buying an additional 649,543 shares during the period. Center Coast Capital Advisors LP boosted its holdings in shares of NuStar Energy by 12.3% in the 3rd quarter. Center Coast Capital Advisors LP now owns 4,657,451 shares of the pipeline company’s stock valued at $189,046,000 after buying an additional 509,808 shares during the period. Finally, Bank of Montreal Can boosted its holdings in shares of NuStar Energy by 25.7% in the 4th quarter. Bank of Montreal Can now owns 1,419,363 shares of the pipeline company’s stock valued at $42,510,000 after buying an additional 290,324 shares during the period. 56.22% of the stock is owned by institutional investors and hedge funds.
TRADEMARK VIOLATION NOTICE: This report was originally reported by Community Financial News and is owned by of Community Financial News. If you are accessing this report on another site, it was stolen and republished in violation of U.S. and international copyright and trademark legislation. The original version of this report can be accessed at https://www.com-unik.info/2018/02/20/nustar-energy-ns-lowered-to-sell-at-zacks-investment-research.html.
NuStar Energy Company Profile
NuStar Energy L.P. is engaged in the transportation of petroleum products and anhydrous ammonia; the terminalling and storage of petroleum products, and the marketing of petroleum products. The Company’s segments include pipeline, storage and fuels marketing. The pipeline segment consists of the transportation of refined petroleum products, crude oil and anhydrous ammonia.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for NuStar Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NuStar Energy and related companies with MarketBeat.com's FREE daily email newsletter.