Antero Midstream Downgraded as Analysts Adjust Ratings

Antero Midstream (NYSE:AM) faced a downgrade from a “buy” rating to a “hold” rating, as announced by analysts at Wall Street Zen in a note to investors on October 28, 2023. This change reflects a growing cautious sentiment among analysts regarding the company’s stock performance.

Several other research firms have offered varying assessments of Antero Midstream recently. Weiss Ratings reaffirmed a “buy (a-)” rating on October 4, while Zacks Research lowered its rating from “strong-buy” to “hold” on September 19. The Goldman Sachs Group increased its target price for Antero Midstream from $15.50 to $17.50, assigning a “neutral” rating in a report released on August 21. Meanwhile, Wells Fargo & Company adjusted their target price from $17.00 to $19.00 and maintained an “equal weight” rating on August 4. Morgan Stanley followed suit, raising its target price from $17.00 to $19.00 while issuing an “underweight” rating on August 7.

The consensus rating among analysts now stands at “hold,” with a target price of $18.50, according to data from MarketBeat. Currently, one analyst has rated the stock as a Strong Buy, three have issued Hold ratings, and one has assigned a Sell rating.

Antero Midstream’s stock recently declined by 1.1%. The company released its quarterly earnings data on October 29, revealing earnings per share (EPS) of $0.24, which fell short of analysts’ expectations of $0.25 by $0.01. The firm reported a return on equity of 22.53% and a net margin of 40.07%. Revenue for the quarter totaled $294.82 million, surpassing estimates of $287.30 million. However, this figure represents an 8.4% decrease compared to the same quarter last year.

Insider Activity and Investor Movements

In related news, Antero Midstream experienced insider trading activity when Sheri Pearce, an insider, sold 39,155 shares on August 21 at an average price of $17.51, totaling approximately $685,604.05. Following this sale, Pearce’s ownership in the company decreased by 26.88%, leaving her with 106,489 shares valued at around $1,864,622.39. This transaction has been documented in a filing with the Securities and Exchange Commission.

Hedge fund activity has also been notable, with several large investors adjusting their holdings in Antero Midstream. GAMMA Investing LLC increased its stake by 34.0% in the first quarter, acquiring an additional 2,165 shares for a total of 8,537 shares valued at approximately $154,000. Allspring Global Investments Holdings LLC established a new position worth about $529,000 during the same period. KBC Group NV also raised its holdings by 18.5%, now owning 17,628 shares valued at $317,000. Oregon Public Employees Retirement Fund increased its position by 7.4%, acquiring 73,670 shares valued at $1,326,000.

Currently, approximately 53.97% of Antero Midstream’s stock is held by hedge funds and other institutional investors.

Antero Midstream Corporation is engaged in owning, operating, and developing midstream energy assets within the Appalachian Basin. The company operates through two segments: Gathering and Processing, and Water Handling. The Gathering and Processing segment includes a network of pipelines and compressor stations that manage production from Antero Resources’ wells located in West Virginia and Ohio.

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