The Cheniere Energy Inc. (LNG) shares are trading at lower $53.62 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $66.05.
To add more color to this target, the company’s high over the last year is $67.49 and the low is $27.06. Over the last 52 weeks, LNG is down -20.55% while the S&P 500 is down -0.83%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LNG reported a profit of $1.24 billion. Cheniere Energy Inc. also saw revenues increase to $2.4 billion. In addition, LNG has free cash flow of $45.0 million as of 06-2020. The company’s EBITDA came in at $1.21 billion which compares well with its peers.
LNG booked profit margins of 11.60%, and its Return on Assets is 3.40%. All told, it is clear that, LNG needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LNG has a short ratio of 4.12 and outstanding shares of 252.10M.
LNG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.28 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.37. Cheniere Energy Inc. LNG also noted assets of $35.85 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LNG has historically followed its peers on positive news.
All told, Cheniere Energy Inc. LNG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LNG represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Cheniere Energy Inc. LNG is now commanding a market cap of 13.46B and a float of 246.30M. LNG is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LNG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in LNG, either long or short, and we have not been compensated for this article.