A look into ONEOK Inc. (OKE)’s deeper side

ONEOK Inc. (NYSE: OKE) stock fell -2.31% on Friday to $57.62 against a previous-day closing price of $58.98. With 2.58 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.87 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $58.62 whereas the lowest price it dropped to was $57.53. The 52-week range on OKE shows that it touched its highest point at $75.07 and its lowest point at $48.51 during that stretch. It currently has a 1-year price target of $69.62. With its current market cap of 25.97 billion, OKE has annualized dividend of $3.74 while the current yield stands at 6.49%. Beta for the stock currently stands at 1.69.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OKE was down-trending over the past week, with a drop of -4.56%, but this was up by 6.25% over a month. Three-month performance dropped to -14.45% while six-month performance fell -8.38%. The stock gained 11.41% in the past year, while it has lost -1.94% so far this year. A look at the trailing 12-month EPS for OKE yields 3.36 with Next year EPS estimates of 4.29. For the next quarter, that number is 0.86. This implies an EPS growth rate of 136.40% for this year and 13.14% for next year. EPS is expected to grow by 10.87% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.00%.

Float and Shares Shorts:

At present, 447.12 million OKE shares are outstanding with a float of 443.90 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.98 million, which was 1.79% higher than short shares on Jun 14, 2022. In addition to Mr. Pierce H. Norton II as the firm’s Pres, CEO & Director, Mr. Walter S. Hulse III serves as its CFO, Treasurer and Exec. VP of Investor Relations & Corp. Devel.

Institutional Ownership:

Through their ownership of 67.40% of OKE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.80% of OKE, in contrast to 26.77% held by mutual funds. Shares owned by individuals account for 1.49%. As the largest shareholder in OKE with 11.16% of the stake, The Vanguard Group, Inc. holds 49,835,569 shares worth 49,835,569. A second-largest stockholder of OKE, SSgA Funds Management, Inc., holds 32,825,649 shares, controlling over 7.35% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in OKE, holding 30,997,753 shares or 6.94% stake. With a 2.95% stake in OKE, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 13,166,919 shares are owned by the mutual fund manager. The SPDR Series – Energy Select Secto, which owns about 2.75% of OKE stock, is the second-largest Mutual Fund holder. It holds 12,266,933 shares valued at 680.81 million. Vanguard Mid Cap Index Fund holds 2.30% of the stake in OKE, owning 10,283,139 shares worth 570.71 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OKE since 21 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With OKE analysts setting a high price target of $80.00 and a low target of $58.00, the average target price over the next 12 months is $69.12. Based on these targets, OKE could surge 38.84% to reach the target high and rise by 0.66% to reach the target low. Reaching the average price target will result in a growth of 19.96% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. OKE will report FY 2022 earnings on 02/27/2023. Analysts have provided yearly estimates in a range of $3.96 being high and $3.49 being low. For OKE, this leads to a yearly average estimate of $3.77. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ONEOK Inc. surprised analysts by -$0.04 when it reported $0.87 EPS against a consensus estimate of $0.91. The surprise factor in the prior quarter was -$0.04. Based on analyst estimates, the high estimate for the next quarter is $0.99 and the low estimate is $0.75. The average estimate for the next quarter is thus $0.88.

Summary of Insider Activity:

Insiders traded OKE stock several times over the past three months with 8 Buys and 0 Sells. In these transactions, 21,751 shares were bought while 0 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 150,510 while 86,912 shares were sold.

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