What Are The Risk Factors For New Fortress Energy Inc. (NFE)?


As of Friday close, New Fortress Energy Inc.’s (NASDAQ:NFE) stock was down -$1.24, moving down -4.34 percent to $27.35. The average number of shares traded per day over the past five days has been 2,207,640 shares. 2 times new highs have been achieved over the past 5 days, with a -$4.25 fall in that time frame. In the last twenty days, the average volume was 2,088,895, while in the previous 50 days, it was 1,791,010.

Since last month, NFE stock retreated -31.61%. Shares of the company fell to $26.57 on 03/17/23, the lowest level in the past month. A 52-week high of $63.06 was reached on 02/03/23 after having rallying from a 52-week low of $27.72. Since the beginning of this year, NFE’s stock price has dropped by -35.53% or -$15.07, and marked a new high 5 times. However, the stock has declined by -56.63% since its 52-week high.

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NFE stock investors should be aware that New Fortress Energy Inc. (NFE) stock had its last reported insider trading activity 78 days ago on Dec 30. Wilkinson Matthew, the Director of the company, disposed of 4,000 shares for $42.28 on Dec 30. It resulted in a $169,135 divestment by the insider. Wilkinson Matthew sold 6,800 shares at an average price of $41.94 on Dec 29. The insider now owns 50,907 shares following the transaction. On Dec 28, Director Griffin C. William bought 10,000 shares at $41.06 apiece. The transaction was valued at $410,636.

Valuation Metrics

Right now, New Fortress Energy Inc. (NFE) has a P/E ratio of about 29.57. The stock’s beta is 1.62. Besides these, the trailing price-to-sales (P/S) ratio of 2.51, the price-to-book (PB) ratio of 4.43.

The latest dividend of $0.10 per share was paid out, which is -81.72% less than last year’s $0.5470. On Tuesday February 28 2023, a $0.4470 dividend decrease was announced.

Financial Health

In the three months ended December 30, New Fortress Energy Inc.’s quick ratio stood at 1.00, while its current ratio was 1.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 3.48, and the total debt-to-equity ratio was 3.53. On the profitability front, the trailing twelve-month gross margin is 58.40% percent. In the year ended December 30, operating margins totaled 30.50%. Based on annual data, NFE earned $737.38 million in gross profit and brought in $2.37 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.50%. Return on equity (ROE) for the past 12 months was 10.90%.

In New Fortress Energy Inc.’s quarter-end financial report for December 30, it reported total debt of $4.48 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. NFE’s revenue fell -18.72% to $731.93 million during the quarter, while net income inched up to $546.37 million. While analysts expected New Fortress Energy Inc. to report $0.53 quarterly earnings, the actual figure was $0.3 per share, beating the consensus estimate by -43.40%. During the quarter, the company generated $286.23 million in EBITDA. The liabilities of New Fortress Energy Inc. were 6.26 billion at the end of its most recent quarter ended December 30, and its total debt was $4.89 billion. The value of shareholders’ equity is $208.77 million.

Technical Picture

This quick technical analysis looks at New Fortress Energy Inc.’s (NFE) price momentum. With a historical volatility rate of 29.02%, the RSI 9-day stood at 18.52% on 17 March.

With respect to its five-day moving average, the current New Fortress Energy Inc. price is down by -13.45% percent or -$4.25. At present, NFE shares trade -30.16% below its 20-day simple moving average and -46.09% percent below its 100-day simple moving average. However, the stock is currently trading approximately -24.84% below its SMA50 and -41.30% below its SMA200.

Stochastic coefficient K was 6.08% and Stochastic coefficient D was 6.67%, while ATR was 1.85. Given the Stochastic reading of 6.54% for the 14-day period, the RSI (14) reading has been calculated as 25.26%. As of today, the MACD Oscillator reading stands at -2.81, while the 14-day reading stands at -4.01.

Analyst Ratings

BofA Securities launched its rating on New Fortress Energy Inc. (NASDAQ: NFE) to a Buy in a note to investors on February 01, 2023. New Fortress Energy Inc. (NFE) has been rated Buy by analysts. According to 0 brokerage firms, NFE is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate New Fortress Energy Inc. stock as buy, with 8 recommending it as overweight.

With a median target price of $54.50, the current consensus forecast for the stock is $39.00 – $64.00. Based on these forecasts, analysts predict New Fortress Energy Inc. (NFE) will achieve an average price target of $53.60.


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