Genesis Energy, L.P. (NYSE:GEL) announced a quarterly dividend on Friday, January 11th, Wall Street Journal reports. Shareholders of record on Thursday, January 31st will be paid a dividend of 0.55 per share by the pipeline company on Thursday, February 14th. This represents a $2.20 annualized dividend and a yield of 10.02%. The ex-dividend date of this dividend is Wednesday, January 30th. This is a boost from Genesis Energy’s previous quarterly dividend of $0.54.
Genesis Energy has decreased its dividend by an average of 5.3% per year over the last three years. Genesis Energy has a dividend payout ratio of 666.7% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Genesis Energy to earn $0.70 per share next year, which means the company may not be able to cover its $2.20 annual dividend with an expected future payout ratio of 314.3%.
Shares of GEL traded up $0.57 during mid-day trading on Friday, reaching $21.95. The company’s stock had a trading volume of 583,396 shares, compared to its average volume of 635,247. Genesis Energy has a 12-month low of $17.55 and a 12-month high of $25.52. The company has a debt-to-equity ratio of 2.06, a quick ratio of 1.57 and a current ratio of 1.77. The company has a market cap of $2.69 billion, a P/E ratio of 20.71 and a beta of 1.40.
In other news, VP Chad Anthony Landry acquired 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 18th. The stock was purchased at an average cost of $19.75 per share, with a total value of $197,500.00. Following the purchase, the vice president now directly owns 20,000 shares of the company’s stock, valued at approximately $395,000. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.72% of the company’s stock.
Several analysts have recently commented on the company. ValuEngine raised Genesis Energy from a “hold” rating to a “buy” rating in a report on Thursday, November 15th. Barclays reduced their price target on Genesis Energy from $25.00 to $24.00 and set an “equal weight” rating for the company in a report on Friday, November 2nd. Robert W. Baird reduced their price target on Genesis Energy from $26.00 to $25.00 and set a “hold” rating for the company in a report on Friday, November 2nd. Royal Bank of Canada raised Genesis Energy from a “sector perform” rating to an “outperform” rating and set a $29.00 price target for the company in a report on Friday, November 2nd. Finally, Zacks Investment Research cut Genesis Energy from a “hold” rating to a “strong sell” rating in a report on Friday, January 4th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and three have assigned a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $27.75.
About Genesis Energy
Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry. The company's Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations; and in the deep-water pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico.
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