Zacks Investment Research cut shares of Nustar Energy (NYSE:NS) from a hold rating to a sell rating in a research note issued to investors on Thursday, December 28th.
According to Zacks, “Considering NuStar Energy's weak distribution coverage and high leverage, we have turned bearish on the partnership. Crude's historic decline has undoubtedly impacted the demand for transportation and storage services. With operations likely to generate weak cash and management not expected to cover distribution until late 2018, NuStar's future looks bleak. In fact, the distribution coverage ratio dipped to a dismal 0.66x in the last quarter – down from 1.02x a year ago. The midstream MLP’s debt-to-equity ratio of over 2 is almost double when compared to the industry average. The high leverage restricts the financial flexibility and limits the growth of the partnership. These factors are also reflected in the price performance of the partnership which has declined over 40% year-to-date, underperforming the broader industry. As such, we view NuStar as a risky bet which investors should avoid.”
A number of other research firms have also weighed in on NS. Mizuho reiterated a hold rating and set a $47.00 target price on shares of Nustar Energy in a report on Friday, October 20th. ValuEngine downgraded shares of Nustar Energy from a hold rating to a sell rating in a research note on Friday, September 1st. Wells Fargo & Co reissued a market perform rating and issued a $37.00 price target (down from $42.00) on shares of Nustar Energy in a research note on Thursday, November 9th. They noted that the move was a valuation call. B. Riley set a $31.00 price target on shares of Nustar Energy and gave the stock a neutral rating in a research note on Monday, December 18th. Finally, Stifel Nicolaus set a $32.00 price target on shares of Nustar Energy and gave the stock a hold rating in a research note on Sunday, December 3rd. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have given a buy rating to the company. Nustar Energy has an average rating of Hold and a consensus target price of $39.33.
Nustar Energy (NYSE:NS) opened at $34.22 on Thursday. Nustar Energy has a 1 year low of $26.21 and a 1 year high of $55.64. The stock has a market cap of $3,180.00, a price-to-earnings ratio of 90.05 and a beta of 1.27. The company has a debt-to-equity ratio of 1.77, a current ratio of 0.36 and a quick ratio of 0.33.
Nustar Energy (NYSE:NS) last posted its quarterly earnings results on Tuesday, November 7th. The pipeline company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.12). Nustar Energy had a net margin of 6.09% and a return on equity of 6.89%. The business had revenue of $440.60 million for the quarter, compared to analysts’ expectations of $413.81 million. During the same quarter in the previous year, the company earned $0.49 earnings per share. The business’s quarterly revenue was down .2% on a year-over-year basis. analysts predict that Nustar Energy will post 0.83 EPS for the current fiscal year.
Several institutional investors and hedge funds have recently made changes to their positions in NS. The Manufacturers Life Insurance Company boosted its holdings in Nustar Energy by 7.3% in the second quarter. The Manufacturers Life Insurance Company now owns 2,406 shares of the pipeline company’s stock worth $112,000 after purchasing an additional 163 shares during the last quarter. Ffcm LLC boosted its holdings in Nustar Energy by 230.9% in the second quarter. Ffcm LLC now owns 2,412 shares of the pipeline company’s stock worth $115,000 after purchasing an additional 1,683 shares during the last quarter. BNP Paribas Arbitrage SA purchased a new stake in Nustar Energy in the third quarter worth approximately $217,000. Chicago Partners Investment Group LLC boosted its holdings in Nustar Energy by 197.8% in the third quarter. Chicago Partners Investment Group LLC now owns 5,361 shares of the pipeline company’s stock worth $218,000 after purchasing an additional 3,561 shares during the last quarter. Finally, HighTower Advisors LLC boosted its holdings in Nustar Energy by 6.1% in the second quarter. HighTower Advisors LLC now owns 4,893 shares of the pipeline company’s stock worth $227,000 after purchasing an additional 282 shares during the last quarter. 57.57% of the stock is owned by institutional investors.
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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.
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