Lone Pine Capital Sold Major Position in Cheniere Energy


Dec. 11 2017, Updated 11:55 a.m. ET

Recent institution activity in LNG

The number of institutional holders in Cheniere Energy (LNG) fell to 540 by the end of the third quarter—compared to 543 in the previous quarter. However, the percentage of shares held by institutional investors rose to 93.5% from 90.0% during the same period. Lone Pine Capital unloaded a major position in Cheniere Energy in the third quarter. It sold 5.2 million shares of LNG during the quarter. First Trust Advisors was followed by Lone Pine Capital, which sold 1.83 million positions in the US LNG exporter during the quarter.

Steadfast Financial and CI Investments were the biggest buyers with 3.23 million and 2.67 million shares bought. Among the top institutional holders, 5.02 million positions were added. It indicates bullish sentiment in LNG.

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Why are institutional investors bullish on LNG?

Institutional investors’ bullishness towards LNG could be attributed to the following factors:

  • There’s the timely completion of LNG Trains at Sabine Pass. Cheniere Energy Partners (CQP) announced the substantial completion of Train 4 at Sabine Pass.
  • There’s strong LNG demand from Asian markets.
  • The US government took measures to promote LNG exports. Cheniere Energy entered a memorandum of understanding with China National Petroleum Corporation to supply LNG from Train 3 at Corpus Christi.
  • Cheniere Energy has more expansion plans.

Top five holders

Icahn Associates, The Baupost Group, The Vanguard Group, Kensico Capital Management, and BlackRock Institutional Trust Company are among the top five institutional holders in Cheniere Energy. Icahn Associates remains bullish about Cheniere Energy’s growth prospects. It hasn’t bought or sold any positions in the company in recent quarters. The firm, promoted by well-known investor Carl Icahn, continues to be the top holder in LNG. Currently, it holds 13.75% in LNG.

In the next part, we’ll discuss analysts’ ratings for Cheniere Energy.


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