Gateway Investment Advisers LLC has decreased its stake in ONEOK, Inc. (NYSE: OKE) by 9.8% during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission, Gateway now holds 208,939 shares of the utilities provider’s stock after selling 22,713 shares in the quarter. As of the end of the reporting period, these holdings were valued at $15,246,000.
A number of institutional investors have also adjusted their positions in ONEOK. Notably, Assetmark Inc. increased its holdings by 84.0% in the second quarter, acquiring an additional 1,848 shares for a total of 4,047 shares now valued at $330,000. Similarly, Morningstar Investment Management LLC raised its stake by 18.2% to own 27,375 shares, worth $2,235,000, after purchasing 4,206 shares.
Meixler Investment Management Ltd. significantly boosted its position in ONEOK by 134.0%, now holding 30,937 shares valued at $2,525,000. Balefire LLC also entered the picture by acquiring a new stake worth $973,000. Additionally, Jackson Hole Capital Partners LLC increased its position by 24.6%, owning 81,923 shares valued at $6,687,000. Overall, institutional investors hold approximately 69.13% of ONEOK’s stock.
In related news, ONEOK’s Director, Brian L. Derksen, purchased 2,500 shares on November 3, 2023, at an average cost of $66.00 per share, totaling $165,000. This transaction increased his holdings to 21,200 shares, valued at approximately $1,399,200. This decision reflects confidence in the company, as it represents a 13.37% increase in Derksen’s position.
ONEOK’s stock experienced a modest uptick of 1.1% following the release of its quarterly earnings report on October 28, 2023. The company reported earnings of $1.49 per share, surpassing the consensus estimate of $1.48 by $0.01. Revenue for the quarter reached $8.63 billion, significantly exceeding the expected $8.23 billion. The firm achieved a net margin of 10.58% and a return on equity of 15.12%. In the same quarter last year, ONEOK reported earnings of $1.18 per share. The company has projected its earnings per share for fiscal year 2025 to be between $4.970 and $5.770.
Additionally, ONEOK declared a quarterly dividend of $1.03 per share, which was paid on November 14, 2023, to shareholders who were on record as of November 3. This results in an annualized dividend of $4.12 and a yield of 5.5%. The company’s payout ratio currently stands at 75.74%.
Market analysts have provided mixed insights regarding ONEOK’s stock. Scotiabank recently adjusted its price target from $88.00 to $87.00 while maintaining a “sector outperform” rating. Citigroup lowered its target from $102.00 to $95.00 and provided a “buy” recommendation. Barclays cut its price target from $83.00 to $78.00 and assigned an “equal weight” rating. The Goldman Sachs Group reiterated a “neutral” rating with a price objective of $72.00, while Raymond James Financial downgraded its target from $100.00 to $82.00, maintaining an “outperform” rating.
Presently, one analyst has assigned a “Strong Buy” rating, while eight analysts recommend a “Buy” and seven suggest a “Hold” rating. According to MarketBeat.com, ONEOK holds a consensus rating of “Moderate Buy” with an average target price of $88.00.
ONEOK, Inc. is a publicly traded midstream energy company headquartered in Tulsa, Oklahoma. The company specializes in owning and operating a diverse portfolio of natural gas and natural gas liquids (NGL) pipelines, processing facilities, and terminal assets. Its operations are integral to gathering, processing, transporting, and marketing NGLs and interstate natural gas, ensuring essential infrastructure connects hydrocarbon production to refineries and petrochemical plants.
