On October 1, 2023, USA Compression Partners (NYSE:USAC) received a downgrade from analysts at Mizuho. The research note issued to investors revealed that the rating was lowered from “neutral” to “underperform.” This news had an impact on the company’s stock performance at the opening of NYSE USAC, which started at $25.37 on Friday.
USA Compression Partners is currently valued at $2.49 billion in terms of market capitalization. Its price-to-earnings (PE) ratio stands at 845.67, indicating a relatively higher valuation compared to its earnings. Additionally, the stock has a beta of 1.52, which suggests that it is more volatile compared to the overall market.
Over the past year, USA Compression Partners has traded between a low of $16.76 and a high of $26.40. This price range demonstrates fluctuations in investor sentiment towards the company. Currently, the stock is trending around its recent average with a 50-day moving average price of $21.00 and a two-hundred-day moving average price of $20.44.
As an energy services company, USA Compression Partners primarily provides compression services to customers in the natural gas and crude oil industries within the United States. The company offers these services under long-term contracts with its clients and is involved in various aspects of compression unit operations such as engineering, design, operation, service, repair, as well as maintaining support inventory and equipment.
In their most recent quarterly earnings report released on August 1st this year, USA Compression Partners outperformed analysts’ expectations for earnings per share (EPS). The company reported an EPS of $0.08 for the quarter exceeding consensus estimates by $0.01. Their recorded revenue during this period amounted to $206.92 million compared to analysts’ estimated revenue of $198.57 million.
USA Compression Partners achieved a net margin of 6.79% during the quarter, indicating profitability in their operations. However, the company also experienced a negative return on equity of 35.21%, which suggests that its financial performance did not meet shareholders’ expectations.
Looking ahead, equity analysts anticipate that USA Compression Partners will post an EPS of 0.3 for the current year. This projection reflects their outlook on the company’s future earnings potential.
The recent downgrade by Mizuho highlights concerns raised by analysts regarding USA Compression Partners’ performance and prospects. Investors should carefully evaluate these factors alongside other market indicators before making any investment decisions related to NYSE USAC.
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USA Compression Partners (USAC) Gains Attention from Analysts and Investors
In recent months, USA Compression Partners (USAC) has garnered significant attention from various brokerages and investment firms. In a research report published on August 3rd, Royal Bank of Canada revised the target price for USAC from $21.00 to $22.00, classifying the company with a “sector perform” rating. StockNews.com also released a report on August 17th, initiating coverage on USAC and issuing a “buy” rating. Furthermore, TheStreet upgraded USAC’s stock rating from “c+” to “b-” in another report published on the same day.
Despite these positive evaluations, two equities research analysts have designated a sell rating for the stock, while one analyst has recommended holding it. On the other hand, one analyst has deemed USAC as a buy opportunity. Bloomberg reported that amidst these varied ratings, the consensus among analysts points towards maintaining the stock with a “Hold” average rating and an anticipated target price of $21.25.
Moreover, several hedge funds and institutional investors have been actively involved in trading USAC shares recently. Belpointe Asset Management LLC amplified its position in USAC by 232.9% during Q1 of this year by purchasing an additional 864 shares, bringing its total ownership to 1,235 shares valued at approximately $26,000.
Similarly, BOKF NA positioned itself as a new shareholder of USAC during Q1 after acquiring shares worth $30,000. Additionally, State of Wyoming capitalized on buying into USAC during Q4 last year for approximately $32,000.
Tower Research Capital LLC TRC saw tremendous growth in its stake of USAC during Q3 this year as it increased holdings by 2,790 shares (a boost of over 2,200%) resulting in a total ownership value of around $51,000.
Barclays PLC also expanded its position significantly by amassing 2,647 additional shares in USAC during Q1 this year, representing a growth of 1,102.9%. This brought Barclays’ total share ownership to 2,887, valued around $61,000.
Overall, these recent developments indicate the increasing interest in USA Compression Partners within the investment community. With varying recommendations from analysts and noteworthy activity from hedge funds and institutional investors, USAC continues to attract attention as investors navigate the complex landscape of the stock market. It will be interesting to observe how these dynamics affect the stock’s performance in the coming months.
