EQT Corporation (EQT) Stake Maintained by Jana Partners LLC
Jana Partners LLC
recently disclosed that they own a 5.9% stake in EQT Corporation (NYSE:EQT) in a Schedule 13D/A disclosure that was filed with the Securities and Exchange Commission (SEC) on Friday, November 3rd. The investor owns 10,257,129 shares of the stock valued at about $639,019,137. The reporting parties listed on the disclosure included Jana Partners LLC, Jonathan Z Cohen, Daniel C Herz and Edward E Cohen. The disclosure is available through EDGAR at this hyperlink.
Jana Partners LLC
provided the following explanation of their ownership:
Item 4 of the Schedule 13D is hereby amended by the addition of the following:
The Reporting Persons initially invested in the Issuer because they believe that the Issuer trades at a substantial discount to its intrinsic value and has a ready opportunity to unleash this value potential by immediately separating its E&P and midstream businesses into two separate companies. Following the Reporting Persons initial investment, the Issuer entered into an agreement to acquire Rice Energy Inc. (“Rice”). Since then, the Reporting Persons have urged the Issuer to commit to addressing its substantial sum of the parts discount through a separation rather than focusing on a Rice acquisition, which the Reporting Persons believe would create far less value even if successful than a separation. JANA has also filed and distributed proxy materials in opposition to the proposed Rice acquisition.
In response to the Reporting Persons concerns and the concerns of other shareholders regarding addressing the Issuers undervaluation, the Issuer has taken a number of steps to assure shareholders that it will act promptly to address its sum of the parts discount and that shareholders will have the opportunity to have meaningful input into this decision, by announcing the following changes: accelerating the timing of addressing the companys sumoftheparts discount, delaying the deadline for shareholder nominations so that shareholders can hold the Issuers board accountable if they are unhappy with the boards decision, and agreeing not to take any action before the Issuers next annual meeting that would preclude or interfere with a separation of the businesses. In addition, the Issuer has committed to revising its management incentive compensation policy so that management is not rewarded simply by virtue of the Issuer acquiring Rice. As a result, while the Reporting Persons still intend to vote against the acquisition of Rice, JANA has decided to withdraw its proxy materials filed in opposition to the Rice acquisition. The Reporting Persons may still pursue change on the Issuers board depending upon various factors, including the outcome of the Issuers boards review of means by which to address the Issuers sum of the parts discount.
CUSIP No. 26884L109SCHEDULE 13D/APage 7 of 8 Pages
Other large investors have also recently bought and sold shares of the company. Aureus Asset Management LLC purchased a new stake in EQT Corporation in the 2nd quarter valued at about $205,000. OppenheimerFunds Inc. purchased a new stake in shares of EQT Corporation during the 1st quarter worth approximately $218,000. Pinebridge Investments L.P. purchased a new stake in shares of EQT Corporation during the 2nd quarter worth approximately $212,000. IFP Advisors Inc increased its stake in shares of EQT Corporation by 6.4% during the 2nd quarter. IFP Advisors Inc now owns 4,108 shares of the oil and gas producer’s stock worth $241,000 after purchasing an additional 247 shares during the last quarter. Finally, D.A. Davidson & CO. increased its stake in shares of EQT Corporation by 14.2% during the 2nd quarter. D.A. Davidson & CO. now owns 5,801 shares of the oil and gas producer’s stock worth $339,000 after purchasing an additional 721 shares during the last quarter. Hedge funds and other institutional investors own 90.55% of the company’s stock.
EQT Corporation (EQT) traded up $0.24 on Friday, reaching $62.30. 669,539 shares of the company traded hands, compared to its average volume of 3,712,192. The company has a market capitalization of $10.75 billion, a P/E ratio of 71.30 and a beta of 0.79.
EQT Corporation (NYSE:EQT) last released its quarterly earnings data on Thursday, October 26th. The oil and gas producer reported $0.12 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.05) by $0.17. EQT Corporation had a net margin of 1.39% and a return on equity of 1.61%. The company had revenue of $660.30 million during the quarter, compared to the consensus estimate of $667.05 million. During the same period last year, the firm earned ($0.26) EPS. EQT Corporation’s revenue for the quarter was up 18.6% on a year-over-year basis. equities analysts forecast that EQT Corporation will post 0.79 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, December 1st. Shareholders of record on Friday, November 10th will be issued a $0.03 dividend. This represents a $0.12 annualized dividend and a yield of 0.19%. The ex-dividend date of this dividend is Thursday, November 9th. EQT Corporation’s payout ratio is 57.15%.
In other news, Director A. Bray Jr. Cary purchased 406 shares of the business’s stock in a transaction on Monday, October 2nd. The stock was purchased at an average cost of $65.24 per share, with a total value of $26,487.44. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. 1.00% of the stock is owned by company insiders.
EQT has been the subject of several research analyst reports. Scotiabank restated an “average” rating and set a $79.00 price target on shares of EQT Corporation in a research note on Wednesday, October 4th. Cowen and Company set a $80.00 price target on shares of EQT Corporation and gave the stock a “buy” rating in a research note on Tuesday, July 18th. BMO Capital Markets set a $70.00 price target on shares of EQT Corporation and gave the stock a “buy” rating in a research note on Friday, July 28th. KLR Group restated a “buy” rating and set a $102.00 price target (up previously from $101.00) on shares of EQT Corporation in a research note on Sunday, July 30th. Finally, Stifel Nicolaus raised their price target on shares of EQT Corporation from $79.00 to $85.00 and gave the stock a “buy” rating in a research note on Monday, July 10th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and ten have issued a buy rating to the company’s stock. EQT Corporation currently has a consensus rating of “Buy” and a consensus target price of $78.09.
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About EQT Corporation
EQT Corporation is a natural gas company. The Company operates through three segments: EQT Production, EQT Gathering and EQT Transmission. The EQT Production segment includes its exploration for, and development and production of, natural gas, natural gas liquids and a limited amount of crude oil, primarily in the Appalachian Basin.
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