NGL Energy Partners LP (NYSE: NGL) saw its shares drop by 3.4% on Wednesday, closing at $9.78 after trading as low as $9.86. The decline marks a significant decrease from the previous session’s close of $10.12. During the trading session, only 25,061 shares changed hands, substantially lower than the average volume of 477,085 shares.
The downturn in share price follows the company’s recent quarterly earnings report, which was released on November 4, 2023. NGL Energy Partners reported earnings of $0.02 per share for the quarter, alongside revenues of $674.68 million. This figure surpassed analysts’ expectations, which had estimated revenues at around $508.49 million. Despite the positive revenue news, the company reported a negative return on equity of 53.56% and a net margin of 3.29%.
Analyst Ratings and Investor Activity
In response to the earnings report, Weiss Ratings reaffirmed its “hold (C)” rating on NGL Energy Partners’ shares in a research note dated October 31, 2023. According to MarketBeat, one equities research analyst has rated the stock with a “hold” rating, reflecting a cautious stance among industry observers.
Investor interest has been notable, with several large institutional investors adjusting their stakes in the company. For instance, HighTower Advisors LLC increased its investment in NGL Energy Partners by an impressive 809.1% during the first quarter, acquiring an additional 245,000 shares, bringing its total holdings to 275,280 shares valued at approximately $1.25 million. Similarly, Jump Financial LLC raised its stake by 213.1%, now owning 69,500 shares valued at $316,000.
Other significant movements include the State of Wyoming purchasing a new position valued at about $51,000 and Nomura Holdings Inc. acquiring a stake worth $1.3 million. Goldman Sachs Group Inc. also increased its holdings by 3.3%, now owning over 5.2 million shares valued at around $23.83 million. Currently, institutional investors and hedge funds control approximately 40.62% of the company’s stock.
Company Overview and Outlook
NGL Energy Partners LP operates as a publicly traded master limited partnership that provides essential midstream infrastructure and marketing services for the energy sector. The firm specializes in the transportation, storage, fractionation, and marketing of natural gas liquids (NGLs) and refined petroleum products. Its operations support producers, processors, refiners, and industrial customers across key energy-producing regions in the United States.
Looking ahead, analysts expect NGL Energy Partners to post an earnings per share (EPS) of -0.22 for the current year. As the company navigates a challenging market environment, industry stakeholders will be closely monitoring its performance and strategic initiatives in the coming quarters.
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