Excelerate Energy (NYSE:EE) has authorized a significant share buyback plan, allowing the company to repurchase up to $75 million in outstanding shares. This decision, announced on December 11, 2023, reflects the Board of Directors’ belief that the company’s shares are undervalued. Under this plan, the company may repurchase approximately 2.4% of its total stock through open market transactions.
Following the announcement, shares of Excelerate Energy opened at $27.31 on Friday, marking a 1.0% increase. The company’s stock performance has shown resilience, with a fifty-day moving average at $27.12 and a 200-day moving average of $26.57. Over the past year, the stock has fluctuated between a 52-week low of $21.28 and a 52-week high of $32.99.
Excelerate Energy’s financial metrics indicate a stable position in the market. The company possesses a debt-to-equity ratio of 0.56 and both a quick ratio and a current ratio of 2.39. The firm currently has a market capitalization of $3.11 billion and a price-to-earnings (P/E) ratio of 18.96.
In its latest quarterly earnings report, released on November 5, 2023, Excelerate Energy reported earnings per share of $0.45, surpassing analysts’ expectations of $0.32 by $0.13. With revenues reaching $391.04 million during this quarter, the company significantly exceeded the consensus estimate of $270.82 million. This revenue marks a remarkable increase of 102.2% compared to the same quarter last year.
Analysts have responded positively to Excelerate Energy’s performance. As of now, one equity research analyst has rated the stock as a Strong Buy, while five others have assigned it a Buy rating, and four have recommended holding. According to MarketBeat.com, the overall consensus rating is “Moderate Buy” with a target price of $32.38.
Several brokerages have recently issued reports on Excelerate Energy. JPMorgan Chase & Co. initiated coverage with a “neutral” rating and a price target of $30.00. DNB Markets set a price objective of $31.00, while Morgan Stanley also established a target of $30.00 with an “equal weight” rating. Additionally, Jefferies Financial Group set a higher target of $37.00 and provided a “buy” rating. Notably, Tudor Pickering upgraded the stock from a “hold” to a “strong-buy” rating.
Founded to provide flexible liquefied natural gas (LNG) solutions globally, Excelerate Energy specializes in various services, including regasification, infrastructure development, and the supply and distribution of LNG and natural gas. The firm aims to enhance its market position through strategic financial decisions such as the recent share buyback plan, emphasizing its commitment to shareholder value and long-term growth.
