Gateway Investment Advisers LLC has decreased its stake in ONEOK, Inc. (NYSE: OKE) by 9.8%, according to its latest 13F filing with the Securities and Exchange Commission. As of the end of the third quarter, the firm held 208,939 shares of the utilities provider, following the sale of 22,713 shares during this period. The reduced holdings are valued at approximately $15,246,000.
This reduction is part of a broader trend among institutional investors regarding their positions in ONEOK. Notably, Assetmark Inc. increased its stake in the company by 84.0% in the second quarter, acquiring an additional 1,848 shares to reach a total of 4,047 shares, valued at $330,000. Similarly, Morningstar Investment Management LLC raised its stake by 18.2%, bringing its total to 27,375 shares worth $2,235,000. Meixler Investment Management Ltd. significantly boosted its holdings by 134.0%, and now owns 30,937 shares valued at $2,525,000.
Additionally, Balefire LLC entered the scene by purchasing a new stake worth $973,000, while Jackson Hole Capital Partners LLC increased its position by 24.6%, acquiring 16,151 shares to reach 81,923 shares valued at $6,687,000. Overall, institutional investors control 69.13% of ONEOK’s stock.
Recent Insider Transactions and Earnings Performance
In a related development, ONEOK’s Director, Brian L. Derksen, acquired 2,500 shares on November 3, 2023, at an average price of $66.00 per share, totaling $165,000. Following this transaction, Derksen’s ownership increased by 13.37%, bringing his total holdings to 21,200 shares, valued at approximately $1,399,200. Insider ownership stands at 0.21% of the company’s stock.
ONEOK recently reported its quarterly earnings on October 28, 2023. The company announced an earnings per share (EPS) of $1.49, exceeding analysts’ expectations of $1.48. Revenue for the quarter reached $8.63 billion, surpassing the consensus estimate of $8.23 billion. The company also recorded a net margin of 10.58% and a return on equity of 15.12%. In comparison, the same quarter last year saw earnings of $1.18 per share. For the fiscal year 2025, ONEOK has set its EPS guidance between $4.970 and $5.770.
Dividend Declaration and Analyst Ratings
The company declared a quarterly dividend of $1.03 per share, which was paid on November 14, 2023, to shareholders recorded as of November 3, 2023. This annualizes to $4.12 per share, resulting in a yield of 5.5%. The ex-dividend date was also set for November 3, 2023, with a current payout ratio of 75.74%.
Several analysts have recently updated their ratings on ONEOK shares. Scotiabank lowered its price target from $88.00 to $87.00, maintaining a “sector outperform” rating. Citigroup also reduced its target from $102.00 to $95.00 and affirmed a “buy” rating. Barclays decreased its price target from $83.00 to $78.00, rating the stock as “equal weight.” The Goldman Sachs Group reiterated a “neutral” rating with a price objective of $72.00, while Raymond James Financial maintained an “outperform” rating, adjusting its price target from $100.00 to $82.00.
As of now, ONEOK has received one Strong Buy rating, eight Buy ratings, and seven Hold ratings, leading to a consensus rating of “Moderate Buy” and an average target price of $88.00, according to MarketBeat.com.
ONEOK, Inc., headquartered in Tulsa, Oklahoma, operates as a midstream energy company and manages a portfolio of natural gas and natural gas liquids (NGL) pipelines, processing facilities, and storage assets. The company plays a vital role in gathering, processing, and transporting hydrocarbons, connecting production to various markets.
