Stock Traders Buy High Volume of Call Options on Cheniere Energy (NYSE:LNG)

Cheniere Energy, Inc. (NYSE:LNG) was the target of unusually large options trading activity on Thursday. Traders acquired 6,975 call options on the stock. This is an increase of approximately 40% compared to the typical volume of 4,989 call options.

Cheniere Energy Price Performance

Shares of NYSE:LNG traded up $30.20 on Thursday, reaching $296.42. 4,152,672 shares of the company traded hands, compared to its average volume of 2,316,656. Cheniere Energy has a fifty-two week low of $186.20 and a fifty-two week high of $296.73. The company’s 50 day moving average is $222.52 and its 200-day moving average is $217.71. The stock has a market capitalization of $62.31 billion, a PE ratio of 12.28 and a beta of 0.25. The company has a debt-to-equity ratio of 1.74, a current ratio of 0.94 and a quick ratio of 0.81.

Cheniere Energy (NYSE:LNG) last issued its earnings results on Wednesday, February 25th. The energy company reported $10.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.90 by $6.78. Cheniere Energy had a return on equity of 32.04% and a net margin of 26.68%.The business had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.48 billion. During the same period in the previous year, the firm posted $4.33 EPS. The company’s quarterly revenue was up 22.9% on a year-over-year basis. As a group, analysts anticipate that Cheniere Energy will post 11.69 earnings per share for the current fiscal year.

Cheniere Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 6th were issued a dividend of $0.555 per share. This represents a $2.22 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, February 6th. Cheniere Energy’s payout ratio is presently 9.14%.

Cheniere Energy announced that its board has initiated a share buyback plan on Thursday, February 26th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the energy company to reacquire up to 21.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Cheniere Energy

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Cheniere Energy by 2.0% in the fourth quarter. Vanguard Group Inc. now owns 21,219,557 shares of the energy company’s stock worth $4,124,870,000 after buying an additional 414,022 shares during the period. State Street Corp lifted its stake in Cheniere Energy by 2.8% in the 4th quarter. State Street Corp now owns 6,174,695 shares of the energy company’s stock worth $1,200,299,000 after acquiring an additional 167,622 shares in the last quarter. Norges Bank acquired a new stake in Cheniere Energy during the 2nd quarter worth about $957,425,000. Victory Capital Management Inc. grew its stake in Cheniere Energy by 12.5% during the 4th quarter. Victory Capital Management Inc. now owns 2,279,078 shares of the energy company’s stock valued at $443,031,000 after acquiring an additional 253,469 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Cheniere Energy by 6.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,263,826 shares of the energy company’s stock valued at $440,047,000 after purchasing an additional 134,695 shares during the period. 87.26% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have commented on the stock. TD Cowen raised their target price on shares of Cheniere Energy from $250.00 to $255.00 and gave the company a “buy” rating in a research note on Friday, February 27th. Wells Fargo & Company reduced their price target on shares of Cheniere Energy from $280.00 to $271.00 and set an “overweight” rating for the company in a research note on Friday, March 13th. Royal Bank Of Canada decreased their price objective on shares of Cheniere Energy from $282.00 to $271.00 and set an “outperform” rating for the company in a report on Wednesday, January 28th. Wolfe Research set a $220.00 target price on Cheniere Energy and gave the stock an “outperform” rating in a report on Wednesday, January 14th. Finally, Jefferies Financial Group restated a “buy” rating on shares of Cheniere Energy in a research report on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $264.94.

About Cheniere Energy

Cheniere Energy, Inc is a U.S.-based energy company that develops, owns and operates liquefied natural gas (LNG) infrastructure and markets LNG to global customers. The company’s core activities include natural gas liquefaction, long‑term and short‑term LNG sales and marketing, and the associated midstream services required to move gas from production basins to international markets. Cheniere focuses on converting domestic natural gas into LNG for export, providing a bridge between North American supply and overseas demand.

Cheniere’s principal operating assets are large-scale LNG export terminals located on the U.S.