Aerospace Co. Ltd. Hanwha has significantly increased its investment in NextDecade Corporation by acquiring 310,964 shares of the company’s stock. The transaction, which took place on December 2, 2023, was executed at an average price of $5.93 per share, resulting in a total cost of $1,844,016.52. Following this acquisition, Hanwha now holds 23,198,690 shares in NextDecade, bringing its total ownership to an estimated value of $137,568,231.70. This purchase marks a 1.36% increase in Hanwha’s stake in the company.
The details of this transaction were disclosed in a legal filing with the U.S. Securities and Exchange Commission (SEC), a requirement for major shareholders owning more than 10% of a company’s shares.
NextDecade’s Market Position and Stock Activity
On the trading day following the acquisition, shares of NextDecade (NASDAQ:NEXT) opened at $6.12. The company currently boasts a market capitalization of $1.62 billion and a price-to-earnings (P/E) ratio of -8.38. Its stock is characterized by a beta of 1.90, indicating a higher volatility compared to the overall market. NextDecade has a current ratio of 0.64 and a quick ratio of 0.64, alongside a debt-to-equity ratio of 3.34.
Over the past year, the stock has experienced fluctuations, with a twelve-month low of $5.16 and a high of $12.12. The stock’s 50-day moving average stands at $6.18, while its 200-day moving average is $8.21.
Recent Analyst Ratings and Institutional Investments
Recent evaluations from various analysts have influenced the market’s perception of NextDecade. On September 12, 2023, Morgan Stanley reiterated an “equal weight” rating, adjusting the price target from $15.00 to $10.00. Other analysts, including Weiss Ratings and Cowen, have also adjusted their ratings, with Cowen downgrading NextDecade from “buy” to “hold” on September 15, 2023, and setting a new target price of $7.00 on October 23, 2023. Currently, one analyst has rated the stock as a Strong Buy, four have issued Hold ratings, and one has given a Sell rating. The consensus rating for the stock is “Hold”, with a target price averaging $8.50.
In addition to Hanwha’s acquisition, institutional investors have made noteworthy adjustments to their holdings. Cambria Investment Management L.P. increased its stake in NextDecade by 25% during the third quarter, now owning 59,638 shares valued at $405,000. Other institutional players, including CIBC Bancorp USA Inc. and Dark Forest Capital Management LP, have also made new investments in NextDecade during this period.
Currently, institutional and hedge fund investors control 66.74% of the company’s stock.
NextDecade Corporation is recognized as a development company focusing on energy solutions and infrastructure. As the market continues to evolve, the implications of these transactions and ratings could play a significant role in shaping NextDecade’s future trajectory.
