Zacks Investment Research lowered shares of Macquarie Infrastructure (NYSE:MIC) from a strong-buy rating to a hold rating in a report released on Tuesday morning.
According to Zacks, “Over the past month, Macquarie’s shares have underperformed and look overvalued compared to its industry. The company’s third-quarter 2018 adjusted earnings of 29 cents per share missed the Zacks Consensus Estimate by 48.2%. Macquarie perceives that flaring up interest expenses and higher acquisition related costs might continue to dent its bottom line performances in the upcoming quarters. Also, ongoing challenges within the International-Matex Tank Terminals (IMTT) segment might weigh over near-term results. However, Macquarie perceives that improved performance of Atlantic Aviation, Contracted Power and MIC Hawaii segments will continue to boost its near-term revenues. Also, divestiture of Bayonne Energy Center (BEC) facility will likely strengthen balance sheet and augment liquidity going forward. Moreover, ongoing repurposing and repositioning moves are expected to rebound performance of IMTT segment in the long run.”
Several other brokerages also recently issued reports on MIC. JPMorgan Chase & Co. lifted their price objective on Macquarie Infrastructure from $47.00 to $48.00 and gave the company a neutral rating in a research report on Friday, July 27th. SunTrust Banks set a $49.00 price objective on Macquarie Infrastructure and gave the company a hold rating in a research report on Monday, July 23rd. Finally, Oppenheimer set a $60.00 price objective on Macquarie Infrastructure and gave the company a buy rating in a research report on Thursday, November 1st. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $51.00.
The company also recently announced a quarterly dividend, which was paid on Thursday, November 15th. Stockholders of record on Monday, November 12th were paid a $1.00 dividend. The ex-dividend date was Thursday, November 8th. This represents a $4.00 annualized dividend and a dividend yield of 10.21%. Macquarie Infrastructure’s dividend payout ratio (DPR) is currently 156.25%.
In other news, Director Martin Stanley bought 12,000 shares of the stock in a transaction dated Monday, November 5th. The stock was bought at an average cost of $39.04 per share, with a total value of $468,480.00. Following the purchase, the director now owns 32,000 shares of the company’s stock, valued at $1,249,280. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, major shareholder Group Ltd Macquarie bought 109,307 shares of the stock in a transaction dated Tuesday, August 28th. The stock was purchased at an average cost of $46.90 per share, with a total value of $5,126,498.30. The disclosure for this purchase can be found here. Insiders bought a total of 724,330 shares of company stock valued at $33,802,400 over the last three months. Insiders own 6.90% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Belpointe Asset Management LLC acquired a new stake in shares of Macquarie Infrastructure in the 3rd quarter valued at $162,000. Rehmann Capital Advisory Group increased its stake in shares of Macquarie Infrastructure by 2,356.0% in the 3rd quarter. Rehmann Capital Advisory Group now owns 16,283 shares of the conglomerate’s stock valued at $353,000 after buying an additional 15,620 shares during the period. Griffin Asset Management Inc. acquired a new stake in shares of Macquarie Infrastructure in the 3rd quarter valued at $1,204,000. Macquarie Group Ltd. increased its stake in shares of Macquarie Infrastructure by 28.7% in the 3rd quarter. Macquarie Group Ltd. now owns 12,338,912 shares of the conglomerate’s stock valued at $569,194,000 after buying an additional 2,751,369 shares during the period. Finally, Atlantic Trust LLC increased its stake in shares of Macquarie Infrastructure by 58.7% in the 3rd quarter. Atlantic Trust LLC now owns 21,799 shares of the conglomerate’s stock valued at $1,006,000 after buying an additional 8,067 shares during the period. 69.75% of the stock is owned by institutional investors.
About Macquarie Infrastructure
Macquarie Infrastructure Corporation owns and operates a portfolio of businesses that provide services to other businesses, government agencies, and individuals. It operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP), and MIC Hawaii. The IMTT segment offers bulk liquid storage, handling, and other services for petroleum products, chemicals, renewable fuels, and vegetable and animal oils through a network of 19 marine terminals, including 17 in the United States and 2 in Canada.
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