Western Midstream Partners LP (NYSE: WES) stock jumped 1.00% on Thursday to $26.28 against a previous-day closing price of $26.02. With 1.28 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.01 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $26.36 whereas the lowest price it dropped to was $26.07. The 52-week range on WES shows that it touched its highest point at $28.80 and its lowest point at $22.94 during that stretch. It currently has a 1-year price target of $30.86. With its current market cap of 10.06 billion, WES has annualized dividend of $2.25 while the current yield stands at 8.56%. Beta for the stock currently stands at 2.67.
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 WES was up-trending over the past week, with a rise of 1.62%, but this was down by -2.95% over a month. Three-month performance dropped to -0.94% while six-month performance rose 8.60%. The stock lost -3.52% in the past year, while it has lost -0.83% so far this year. A look at the trailing 12-month EPS for WES yields 2.67 with Next year EPS estimates of 3.09. For the next quarter, that number is 0.66. This implies an EPS growth rate of 38.00% for this year and 20.31% for next year. EPS is expected to grow by 3.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.80%.
Float and Shares Shorts:
At present, 384.61 million WES shares are outstanding with a float of 383.89 million shares on hand for trading. On Aug 14, 2023, short shares totaled 5.26 million, which was 1.37% higher than short shares on Jul 13, 2023. In addition to Mr. Michael P. Ure as the firm’s Pres, CEO & Director – Western Midstream Holdings LLC, Ms. Kristen S. Shults serves as its Sr. VP & CFO – Western Midstream Holdings LLC.
Through their ownership of 92.91% of WES’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.89% of WES, in contrast to 23.44% held by mutual funds. Shares owned by individuals account for 19.18%. As the largest shareholder in WES with 7.71% of the stake, ALPS Advisors, Inc. holds 29,663,986 shares worth 29,663,986. A second-largest stockholder of WES, Invesco Advisers, Inc., holds 18,008,778 shares, controlling over 4.68% of the firm’s shares. Harvest Fund Advisors LLC is the third largest shareholder in WES, holding 17,531,061 shares or 4.56% stake. With a 7.73% stake in WES, the Alerian MLP ETF is the largest stakeholder. A total of 29,715,304 shares are owned by the mutual fund manager. The Invesco SteelPath MLP Income Fund, which owns about 2.60% of WES stock, is the second-largest Mutual Fund holder. It holds 10,005,090 shares valued at 282.84 million. Goldman Sachs MLP Energy Infrastr holds 1.25% of the stake in WES, owning 4,810,529 shares worth 135.99 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, WES reported revenue of $876.42M and operating income of $350.16M. The EBITDA in the recently reported quarter was $534.55M and diluted EPS was $0.74.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WES since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With WES analysts setting a high price target of $35.00 and a low target of $24.00, the average target price over the next 12 months is $30.57. Based on these targets, WES could surge 33.18% to reach the target high and fall by -8.68% to reach the target low. Reaching the average price target will result in a growth of 16.32% 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.
Summary of Insider Activity:
Insiders traded WES stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 290,115 while 100,602 shares were sold.