Zacks Investment Research upgraded shares of NuStar Energy (NYSE:NS) from a sell rating to a hold rating in a research note published on Friday morning.
According to Zacks, “NuStar has successfully weathered crude's historic decline through its large and diverse asset portfolio that provides highly certain cash flows. NuStar’s fee-based transportation and storage assets make it less susceptible to commodity price weakness. The partnership’s acquisition of Navigator Energy Services marked NS’s entry into Permian, thus boosting revenues. Further its merger decision with its general partner and elimination of IDRs will likely lower the cost of capital, thereby creating a more efficient and transparent structure. However, as a part of the merger, NS is also set to reduce its quarterly distribution which is likely to dampen investor’s confidence. As it is, NuStar's debt-to-equity ratio of nearly 2 is significantly above the industry average. As such we take a cautious stance on the prospects of the sock.”
Other analysts also recently issued research reports about the stock. ValuEngine downgraded shares of NuStar Energy from a hold rating to a sell rating in a research report on Friday, February 2nd. Citigroup reduced their price target on shares of NuStar Energy from $33.00 to $27.00 and set a neutral rating for the company in a research report on Friday, February 9th. B. Riley set a $31.00 price target on shares of NuStar Energy and gave the company a hold rating in a research report on Thursday, February 8th. Wells Fargo & Co reissued a market perform rating and issued a $37.00 price target (down previously from $42.00) on shares of NuStar Energy in a research report on Thursday, November 9th. They noted that the move was a valuation call. Finally, Stifel Nicolaus set a $26.00 price target on shares of NuStar Energy and gave the company a hold rating in a research report on Friday, February 9th. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating and one has assigned a buy rating to the company. The company presently has an average rating of Hold and an average price target of $34.60.
NuStar Energy (NYSE:NS) last posted its quarterly earnings results on Thursday, February 8th. The pipeline company reported $0.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.17). NuStar Energy had a net margin of 8.16% and a return on equity of 8.72%. The business had revenue of $450.50 million during the quarter, compared to analyst estimates of $435.46 million. During the same period in the previous year, the business posted $0.31 EPS. The business’s revenue for the quarter was down 4.5% compared to the same quarter last year. research analysts expect that NuStar Energy will post 1.61 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 13th. Shareholders of record on Thursday, February 8th were paid a dividend of $1.095 per share. This represents a $4.38 annualized dividend and a yield of 18.55%. The ex-dividend date was Wednesday, February 7th. NuStar Energy’s dividend payout ratio (DPR) is presently 634.79%.
A number of large investors have recently modified their holdings of the business. The Manufacturers Life Insurance Company lifted its stake in NuStar Energy by 7.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,406 shares of the pipeline company’s stock valued at $112,000 after acquiring an additional 163 shares in the last quarter. Wells Fargo & Company MN lifted its stake in NuStar Energy by 1.0% during the 3rd quarter. Wells Fargo & Company MN now owns 172,370 shares of the pipeline company’s stock valued at $6,997,000 after acquiring an additional 1,679 shares in the last quarter. Oxbow Advisors LLC lifted its stake in NuStar Energy by 28.6% during the 4th quarter. Oxbow Advisors LLC now owns 7,748 shares of the pipeline company’s stock valued at $232,000 after acquiring an additional 1,725 shares in the last quarter. Alliancebernstein L.P. lifted its stake in NuStar Energy by 13.7% during the 2nd quarter. Alliancebernstein L.P. now owns 17,997 shares of the pipeline company’s stock valued at $839,000 after acquiring an additional 2,165 shares in the last quarter. Finally, Creative Planning lifted its stake in NuStar Energy by 4.5% during the 4th quarter. Creative Planning now owns 55,305 shares of the pipeline company’s stock valued at $1,656,000 after acquiring an additional 2,394 shares in the last quarter. Institutional investors and hedge funds own 56.22% of the company’s stock.
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About NuStar Energy
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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