Natixis Boosts Investment in Propane Partner
Natixis, a global asset manager, has increased its stake in Suburban Propane Partners, L.P., by 100.0%, according to recent documents filed with the Securities and Exchange Commission (SEC). The fund now owns 805,200 shares of the company’s stock – up from 402,600 over the fourth quarter – representing around 1.27% of the total value of these shares at $12,223,000.
Suburban Propane Partners is a subsidiary operating within energy markets and retail marketing. Its services include the distribution and marketing of propane as an alternative to traditional fuels which have come under increasing scrutiny due to environmental impacts.
This investment reaffirms Natixis’s confidence in the growth potential of this market segment. Recently released Q1 earnings data from Suburban Propane Partners showed $1.62 EPS for the period on revenue totaling just over $526 million during the same duration. With a net margin of around six percent and return on equity amounting to almost 17 percent, Suburban Propane Partners demonstrates sound financials across all metrics.
Natixis investment signifies an affirmation for companies focused on clean combustion subsitutes moving forward into more environmentally sensitive times. As such companies are increasingly focusing their efforts on developing products that place environment govenance at their core objectives thereby helping guarantee organisation survival while conserving the environment .
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Institutional Investors Show Interest in Suburban Propane Partners as Company Eyes Growth in Agriculture Market
Suburban Propane Partners, L.P., a subsidiary engaged in the distribution and retail marketing of propane, renewable propane, fuel oil, and refined fuels has been gaining attention from several hedge funds. Notably, institutions such as the Moneta Group Investment Advisors LLC, JPMorgan Chase & Co., the Goldman Sachs Group Inc., Clearbridge Investments LLC and Levin Capital Strategies L.P have all either added to or reduced their stakes in the company. This recent investment activity can be seen as an indicator of future growth for Suburban Propane Partners.
Moneta Group Investment Advisors LLC’s position was boosted by an impressive 104,015.1% in Q4 2020 with their acquisition of over 66 million shares valued at $1,014,439,000. JPMorgan Chase & Co acquired a new stake in Suburban Propane Partners also worth $20,323,000 during Q4 2020 while Clearbridge Investments LLC recently purchased an additional 1,400 shares valued at $8,272,000.
Additionally, it is important to note that Suburban Propane Partners recently declared a quarterly dividend of $0.325 per share on an annualized basis representing a yield of 8.73%. The company’s dividend payout ratio (DPR) is currently at a high value of 90.91%.
Despite the recent upswing in investments from Institutional investors and the expectation for future growth due to demand for its services particularly in agriculture markets where there is growing need for crop drying and weed control among others; StockNews.com cut shares of Suburban Propane Partners to a “hold” rating from “buy” while Mizuho assumed coverage on shares with a “neutral” stance listing its price at $17.
Suburban Propane Partner’s shares opened at $14.89 on Monday with various segments under which it undertakes operations including propane distribution for space heating; water heating, cooking clothes drying; use as a motor fuel for over-the-road vehicles; furnaces and cutting gas to industrial customers among others. The company has a current ratio of 0.90 and a quick ratio of 0.66 with a market capitalization of $945.52 million, P/E ratio of 10.41 and beta value of 0.66.
Overall, Suburban Propane Partners’ potential for growth in the agriculture market with its diversified revenue streams warrants attention from investors looking to venture into alternative energy sources alongside appetite for riskier investments supported by recent investments from institutional investors, although one can opt for caution given recent rating reviews listed above and continued monitoring of the company’s performance is highly recommended.
