Excelerate Energy (NYSE:EE) has announced a significant share buyback program, authorizing the repurchase of up to $75 million in outstanding shares. This decision, made by the company’s Board of Directors on December 11, 2023, reflects management’s confidence in the value of its stock, indicating they believe the shares are currently undervalued. The plan allows for the repurchase of approximately 2.4% of the total outstanding shares through open market transactions.
Following this announcement, shares of Excelerate Energy opened at $27.31 on December 12, 2023, marking a 1.0% increase from the previous day. The company’s fifty-day moving average stands at $27.12, while the two-hundred-day moving average is $26.57. Excelerate Energy has a market capitalization of $3.11 billion, demonstrating its solid position within the energy sector.
Financial Performance Highlights
In its most recent quarterly earnings report, released on November 5, 2023, Excelerate Energy posted earnings per share of $0.45, surpassing analysts’ consensus estimates of $0.32 by $0.13. The company generated revenue of $391.04 million for the quarter, significantly exceeding the consensus estimate of $270.82 million. This represents a remarkable year-over-year revenue increase of 102.2%.
The firm’s financial metrics indicate a healthy balance sheet, with a debt-to-equity ratio of 0.56 and a quick ratio of 2.39. Excelerate Energy’s return on equity stands at 4.34%, alongside a net margin of 3.46%. Analysts forecast that the company will achieve earnings per share of 1.16 for the current fiscal year.
Analyst Ratings and Market Outlook
Several brokerage firms have recently provided insights into Excelerate Energy’s stock. On September 8, 2023, JPMorgan Chase & Co. initiated coverage with a “neutral” rating and a price target of $30.00. DNB Markets followed suit by setting a price objective of $31.00 on September 10, 2023. Morgan Stanley also assigned a price target of $30.00, designating the stock as “equal weight” on November 6, 2023.
In contrast, Jefferies Financial Group provided a more optimistic view, setting a price objective of $37.00 and issuing a “buy” rating on October 28, 2023. Additionally, Tudor Pickering upgraded the stock from a “hold” to a “strong buy” rating on November 17, 2023. Overall, one analyst has rated Excelerate Energy with a Strong Buy, five have given a Buy, and four have assigned a Hold rating. According to MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $32.38.
Excelerate Energy, based in the United States, specializes in providing flexible solutions for liquefied natural gas (LNG) worldwide. The company offers a range of services including regasification, infrastructure development, and supply of LNG and natural gas.
As Excelerate Energy moves forward with this share buyback initiative, stakeholders will closely monitor its impact on the company’s stock performance and overall market strategy.
