Blackstone Holdings III LP, a major holder at
Cheniere Energy Partners LP (CQP), recently added 96,470 shares to their holdings. The buy increased the fund’s position by about 1 percent, and came to a total cost just over $4.5 million.
The fund later added another 27,706 shares, at a cost of just over $1.3 million. The fund has been a notable buyer of shares over the past two years. Otherwise, one director made a minor sale last year.
Overall, insiders own 49.6 percent of shares, and institutions own another 26 percent.
The liquefied natural gas infrastructure company is down about 12 percent over the past year, underperforming the overall stock market. However, a strong year for energy prices led to a 395 percent jump in earnings, and a 45 percent rise in revenues.
That’s taken the partnership to about 9 times forward earnings. And with the latest OPEC production cuts, chances are the high profits can continue.
Action to take: As a partnership, shares are designed to pay out a high yield, making this a better stock to own than to trade. At present, CQP pays out a 9 percent yield.
For traders, shares are still near a multi-month low, but may have started a new run higher. The September $50 calls, last going for about $2.20, offer mid-to-high double-digit returns on a rally higher in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.