Shares of Suburban Propane Partners (NYSE: SPH) received a boost on November 13, 2023, when Argus upgraded the stock to a “strong-buy” rating. This upgrade comes as the company announced its quarterly earnings, which fell short of expectations.
According to a report from Zacks.com, while Argus has a positive outlook on the stock, Weiss Ratings maintained a “hold (c)” rating. Currently, one analyst rates the stock as a strong buy, while another recommends holding, leading to a consensus rating of “buy,” according to data from MarketBeat.
Quarterly Earnings and Dividend Announcement
In its latest financial report, Suburban Propane Partners disclosed earnings per share (EPS) of ($0.62), missing the consensus estimate of ($0.51) by $0.11. The energy provider reported revenues of $211.38 million, significantly below the anticipated $227 million.
The firm’s return on equity stood at 16.31%, with a net margin of 7.44%. Despite the earnings miss, the company has announced a quarterly dividend of $0.325, which will be paid on February 10, 2024, to shareholders recorded by February 3, 2024. This dividend translates to an annualized amount of $1.30, resulting in a yield of 6.7%. The dividend payout ratio is reported at 79.27%.
Institutional Investors Take Action
Recent movements among institutional investors indicate a growing interest in Suburban Propane Partners. Founders Capital Management increased its stake by 56.4% during the third quarter, acquiring an additional 677 shares to hold a total of 1,877 shares. Triumph Capital Management and Advisory Services Network LLC also entered the market with new stakes worth $50,000 and $62,000, respectively.
Geneos Wealth Management Inc. boosted its holdings by 37.7%, acquiring an additional 1,000 shares to total 3,650 shares. Additionally, Root Financial Partners LLC made a new investment valued at approximately $76,000. Currently, institutional investors own about 30.94% of the company’s stock.
Headquartered in Whippany, New Jersey, Suburban Propane Partners is a publicly traded master limited partnership that provides propane and related energy services. The company serves residential, commercial, industrial, and agricultural customers across the United States. In addition to fuel distribution, it offers HVAC services and equipment leasing tailored to customer needs.
The core business focuses on delivering propane for a variety of applications, including space heating, water heating, cooking, and agricultural use. As one of the largest propane retailers in the country, Suburban Propane continues to play a significant role in the energy market.
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