Teekay Story

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TGP -- USA Stock  

USD 10.34  0.10  0.96%

Teekay LNG Partners is scheduled to announce its earnings today. As some conservatives are trying to avoid energy space, we'll recap Teekay LNG Partners a little further and explain its current market possibilities. Will insiders continue to hold, or should we expect a sell-off?
Published over a month ago
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How healthy are Teekay LNG (NYSE:TGP) basic indicators given the recent roll up?
Teekay LNG is UNDERVALUED at 13.49 per share with modest projections ahead. Teekay LNG appears to be not too volatile, given 1 month investment horizon. Teekay LNG Partners owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0755, which indicates the firm had 0.0755% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Teekay LNG Partners, which you can use to evaluate future volatility of the company. Please operate Teekay LNG Risk Adjusted Performance of 0.0521, coefficient of variation of 3301.48, and Semi Deviation of 2.63 to confirm if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Teekay LNG income statement, its balance sheet, and the statement of cash flows. Potential Teekay LNG investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Teekay LNG investors may use each financial statement separately, they are all related. The changes in Teekay LNG's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Teekay LNG's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Teekay LNG fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Teekay LNG performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Teekay LNG shares is the value that is considered the true value of the share. If the intrinsic value Teekay is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Teekay LNG. Please read more on our fundamental analysis page.

Are Teekay LNG Earnings Expected to grow?

The future earnings power of Teekay LNG involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Teekay LNG factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Teekay LNG stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Teekay expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Teekay LNG earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Teekay LNG dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Teekay one year expected dividend income is about $0.51 per share.
Investing in dividend-paying stocks, such as Teekay LNG Partners is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Teekay LNG must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Teekay LNG. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How Teekay utilizes its cash?

To perform a cash flow analysis of Teekay LNG, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Teekay LNG is receiving and how much cash it distributes out in a given period. The Teekay LNG cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down Teekay LNG Indicators

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Teekay LNG is not uncomon. Many companies such as Teekay LNG have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Teekay is distributed among investors.

Ownership Allocation

Teekay LNG Partners shows a total of eighty-eight million four hundred eighty thousand outstanding shares. Teekay LNG Partners maintains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.

Retail Investors
24.79%
Insiders
32.52%
Institutions
42.69%
Retail Investors24.79
Insiders32.52
Institutions42.69

Our perspective of the recent Teekay LNG roll up

The skewness is down to 0.23 as of today. Teekay LNG Partners currently demonstrates below-verage downside deviation. It has Information Ratio of -0.07 and Jensen Alpha of -0.21. However, we do advice investors to further question Teekay LNG Partners expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Although some other companies under the oil & gas midstream industry are still a bit expensive, Teekay LNG may offer a potential longer-term growth to insiders. The inconsistency in the assessment between current Teekay valuation and our trade advice on Teekay LNG is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Teekay LNG.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Teekay LNG Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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