TLDR
- NFE stock jumped 13.06% to $8.57 on Wednesday after hitting an all-time low
- Excelerate Energy announced agreement to acquire NFE’s two LNG terminals and power plant for $1.055 billion
- Stock had previously hit a new 52-week low of $7.20 during Wednesday trading
- Q1 earnings beat analysts’ expectations with EPS of $0.13 vs $0.06 estimate
- Company CFO Christopher Guinta purchased 5,000 shares at $8.57 per share on March 13
New Fortress Energy stock rebounded sharply on Wednesday, breaking a six-day losing streak as investors swooped in for bargains following the stock’s plunge to an all-time low in the previous session.
Shares of the natural gas infrastructure company jumped 13.06% to close at $8.57.
The stock had touched a new 52-week low of $7.20 earlier in the trading day before recovering.
The bounce came amid broader market optimism as Wall Street’s three major indices finished in positive territory.
The Nasdaq added 0.87%, while the S&P 500 gained 0.67% and the Dow Jones rose 0.56%.
Deal Announcement Draws Attention
A key catalyst behind NFE’s stock movement was news that Excelerate Energy had entered into an agreement to acquire some of New Fortress Energy’s assets.
The deal involves Excelerate purchasing two LNG terminals and a 150-MW combined heat and power plant for $1.055 billion.
Specifically, Excelerate will acquire all assets and operations of the Montego Bay LNG Terminal, the Old Harbour LNG Terminal, and the Clarendon combined heat and power co-generation plants.
The companies expect to complete the transaction in the second quarter of 2025, pending regulatory approvals and satisfaction of other closing conditions.
This asset sale represents a significant move for New Fortress Energy as it restructures its portfolio.
Recent Financial Performance
Despite the recent stock price struggles, New Fortress Energy’s financial results have shown some positive signals.
In its most recent quarterly report released on March 3rd, the company posted earnings of $0.13 per share.
This result beat analysts’ consensus estimates of $0.06 per share by a healthy margin.
Revenue for the quarter came in at $679 million, surpassing Wall Street expectations of $613.24 million.
The company maintained a net margin of 7.84% and a return on equity of 15.60% during the period.
Analyst Outlook Remains Mixed
Wall Street has shown mixed sentiment toward NFE stock in recent months.
Morgan Stanley reduced their price target from $15.00 to $14.00 while maintaining an “equal weight” rating.
Stifel Nicolaus cut their price target from $23.00 to $19.00 but kept a “buy” recommendation on the stock.
Deutsche Bank Aktiengesellschaft set a more conservative price target of $8.00 in mid-March.
Overall, the stock currently has an average rating of “Hold” with a consensus target price of $15.00, according to MarketBeat data.
Based on current trading prices, this target suggests potential upside of over 75% from Wednesday’s closing level.
Insider Activity Shows Confidence
In a potentially positive signal, NFE’s CFO Christopher Guinta purchased 5,000 shares of company stock on March 13th.
Guinta acquired the shares at a cost of $8.57 per share, representing a total investment of $42,850.
Following this transaction, the CFO now owns 206,653 shares valued at approximately $1.77 million.
This insider buying could indicate management’s confidence in the company’s future prospects despite recent stock price weakness.
Company insiders own approximately 37.10% of New Fortress Energy’s stock, reflecting substantial internal commitment to the firm.
Stock Trends and Valuation
NFE shares have been trending downward in recent months, with the stock now trading well below both its 200-day and 50-day moving averages.
Before Wednesday’s rebound, the stock had been in a steady decline, touching new lows not seen in over a year.
Currently, New Fortress Energy has a market capitalization of approximately $2.08 billion.
The stock is trading at a price-to-earnings ratio of 8.33, which is relatively low compared to many energy sector peers.
For the full year 2025, analysts expect the company to post earnings per share of $0.36.
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