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How Cheniere Energy Is Placed for the Rest of 2017 and Beyond

PART:
1 2 3 4 5 6 7 8 9 10
Part 9
How Cheniere Energy Is Placed for the Rest of 2017 and Beyond PART 9 OF 10

Are Institutional Investors Bearish on Cheniere Energy?

Number of holders

In this article, we’ll analyze Cheniere Energy’s (LNG) institutional ownership. 

The number of holders of Cheniere Energy was 519 on July 13, 2017, compared to 506 at the end of March 2017.

Are Institutional Investors Bearish on Cheniere Energy?

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Recent institutional activity in Cheniere Energy

Recent institutional activity in Cheniere Energy shows total buying of 7.0 million shares and total selling of 10.9 million shares. These numbers indicate a mostly bearish sentiment for the stock. Steadfast Financial and Anchorage Capital Group are Cheniere’s biggest buyers, with 1.9 million and 1.7 million shares bought, respectively, according to their latest filings on March 31, 2017.

At the same time, JPMorgan Asset Management and Fidelity Management & Research Company are Cheniere’s largest sellers, with 4.2 million and 2.1 million shares sold, respectively.

Why are institutional investors bearish on Cheniere Energy?

Institutional investors’ bearishness on Cheniere Energy can be attributed to the following factors:

  • high leverage
  • increase in power of buyers due to the LNG (liquefied natural gas) supply glut, with buyers looking to buy LNG in spot markets due to the fall in LNG prices and the renegotiation of long-term contracts
  • long-term commitments from investors due to long lead times for LNG projects

Top five holders

Icahn Associates, The Baupost Group, Kensico Capital Management, The Vanguard Group, and BlackRock Institutional Trust Company are the top five institutional holders of Cheniere Energy.

Carl Icahn’s Icahn Associates is the largest institutional holder of Cheniere Energy. The well-known investor has remained bullish on Cheniere Energy’s LNG opportunity and hasn’t changed its position on the company. It currently holds 13.7% of the company’s outstanding shares.

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