NuStar Energy (NYSE:NS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday, February 16th.
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.”
NS has been the subject of a number of other reports. UBS Group reduced their target price on shares of NuStar Energy from $43.00 to $41.00 and set a “buy” rating for the company in a research note on Wednesday, November 8th. Citigroup upgraded shares of NuStar Energy from a “neutral” rating to a “buy” rating and set a $33.00 target price for the company in a research note on Tuesday, December 5th. ValuEngine cut shares of NuStar Energy from a “hold” rating to a “sell” rating in a research note on Sunday, December 31st. Stifel Nicolaus reduced their target price on shares of NuStar Energy from $42.00 to $35.00 and set a “hold” rating for the company in a research note on Wednesday, November 8th. Finally, Barclays reduced their target price on shares of NuStar Energy from $44.00 to $40.00 and set an “equal weight” rating for the company in a research note on Wednesday, November 8th. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating and one has issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $33.00.
NuStar Energy (NYSE NS) traded down $0.06 during mid-day trading on Friday, hitting $21.74. 552,529 shares of the company traded hands, compared to its average volume of 797,785. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.34 and a current ratio of 0.38. The firm has a market capitalization of $2,030.00, a PE ratio of 31.06 and a beta of 1.45. NuStar Energy has a twelve month low of $19.67 and a twelve month high of $52.68.
NuStar Energy (NYSE:NS) last posted its quarterly earnings results on Thursday, February 8th. The pipeline company reported $0.00 EPS for the quarter, missing the 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. NuStar Energy had a return on equity of 7.82% and a net margin of 8.16%. The business’s revenue for the quarter was down 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.31 earnings per share. analysts predict that NuStar Energy will post 1.61 EPS for the current fiscal year.
Several institutional investors have recently modified their holdings of the company. The Manufacturers Life Insurance Company lifted its stake in shares of 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 buying an additional 163 shares during the last quarter. HighTower Advisors LLC lifted its stake in shares of 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 buying an additional 282 shares during the last quarter. Wells Fargo & Company MN increased its position in NuStar Energy by 1.0% during the third quarter. Wells Fargo & Company MN now owns 172,370 shares of the pipeline company’s stock worth $6,997,000 after acquiring an additional 1,679 shares during the period. Oxbow Advisors LLC increased its position in NuStar Energy by 28.6% during the fourth quarter. Oxbow Advisors LLC now owns 7,748 shares of the pipeline company’s stock worth $232,000 after acquiring an additional 1,725 shares during the period. Finally, Alliancebernstein L.P. increased its position in NuStar Energy by 13.7% during the second quarter. Alliancebernstein L.P. now owns 17,997 shares of the pipeline company’s stock worth $839,000 after acquiring an additional 2,165 shares during the period. Institutional investors and hedge funds own 60.11% of the company’s stock.
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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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