Copeland Capital Management LLC recently disclosed an increase of 6.2% in its position with Chord Energy Co. This Nasdaq-listed company witnessed a surge in shares held by Copeland Capital, adding an additional 30,590 shares to their portfolio in the first quarter. Post this purchase, Copeland owns over 520,846 shares of Chord Energy, accounting for 1.6% of its current investment portfolio and making it the 13th largest position held by the company. These shares are valued at $70,106,000 as per their most recent disclosure to the SEC.
Chord Energy also recently announced that it would not be paying any dividends; investors holding on to Chord Energy’s stock will not receive any financial payouts for now. However, shareholders recorded as of Tuesday May 16th were issued a $3.22 dividend since this was prior to the announcement of non-payment of dividends. Even more saliently, if we examine Chord Energy’s dividend payout ratio from their last declared dividend payout cycle which is presently at 11.85%, we see a definite effort towards leveraging equity financing rather than debt for secure funding and expansion.
The non-payment of dividends by Chord Energy came just after Director Lynn A Peterson sold off 3,000 shares during April for a total value of $434,820 at an average price sale price of $144.94 per share while retaining ownership holdings worth $34,509,924.12 across over two hundred thousand different stocks related to the company’s interests.
Corporate insiders have sold over twelve thousand Chord Energy stocks amounting to over one point seven million dollars over the past few years adding further interest and complexity to developments around Ms Peterson’s divestment strategy and how her actions align with the leadership’s vision for growth and expansion.
With both acquiring institutional investors like Copeland Capital making informed decisions about long term investments based on growing market trends and stable financial fundamentals in the energy sector, together with movements by corporate insiders to balance equity- financing options through rigorous divestment strategies or declare healthy dividends, the stage seems set for Chord Energy to tap into increasingly lucrative renewable energy markets.
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Chord Energy Draws Attention from Hedge Funds and Institutional Investors Amidst Market Speculation
Chord Energy, a leading oil and gas exploration company, has recently drawn attention from hedge funds and institutional investors. Armstrong Advisory Group Inc., Crewe Advisors LLC, FinTrust Capital Advisors LLC, Fifth Third Bancorp, and Adams Natural Resources Fund Inc. have all purchased new stakes in the company valued at approximately $25k-$31k in the fourth quarter alone. Currently, 98.83% of Chord Energy’s stock is owned by hedge funds and other institutional investors.
The recent market speculation surrounding Chord Energy has been fueled by numerous analyst reports. Citigroup decreased their price objective on shares of Chord Energy from $170 to $165 on May 21st, while Truist Financial also decreased its price target on shares from $252 to $246 on May 8th . Nevertheless, a consensus rating of “Moderate Buy” was given to Chord Energy by Bloomberg with an average price target of $186.38.
The slump in oil prices seems not to have impacted Chord Energy’s dividend payout ratio which was recently declared as None with investors seeing a yield rate of 3.5%. Calculated at 11.85%, this ratio gives an indication of what percentage of earnings is paid out as dividends.
As for the company’s value in the stock market- CHRD opened at $146.75 on Friday, boasting a PE ratio of 3.48 with a market capitalization figure amounting to $6.10 billion and Beta values pegged at 1.36 respectively.
Qualitative earnings estimates point towards revenue figures exceeding expectations with profits for the fiscal year projected around $20+ per share.
Chord Energy continues to attract interest among investors who will be monitoring news updates for any changes regarding equity stakes or reversal in trends affecting these shares moving forward into Q3/2021 and beyond
