Few events stir the stock market as much as an upgrade from prominent research firms. On February 20, 2024, Wolfe Research sent waves through the financial world by upgrading DT Midstream (NYSE:DTM) from Underperform to Peer Perform.
Analyst Price Forecast Suggests 5.57% Upside
The one-year price target for DT Midstream, as of January 20, 2024, hovers at 58.75. This represents a 5.57% increase from the latest closing price of 55.65. A boost that could spell substantial gains for its investors.
For shareholders, good news also comes in the form of projected annual revenue for DT Midstream, reflecting an 11.06% increase. And in another display of promise, the projected annual non-GAAP EPS stands at 4.40.
DT Midstream Declares $0.74 Dividend
On February 16, 2024, DT Midstream declared a regular quarterly dividend of $0.74 per share ($2.94 annualized), offering shareholders a substantial incentive. As the firm’s stock currently stands at $55.65 / share, its dividend yield weighs in at 5.28%.
Examining a five-year window, historical data reveals that the average dividend yield has been 5.40%, a figure that investors would do well to bear in mind. Additionally, the dividend yield’s current position of 0.16 standard deviations below the historical average captures present circumstances succinctly.
Moreover, the company’s dividend payout ratio is at 0.74, indicating a steady payout proportion. However, it’s essential to note the three-year dividend growth rate of -0.16%, signaling a potential area for improvement.
What is the Fund Sentiment?
Fund sentiment holds a pivotal place in guiding investment strategies. Here, 832 funds or institutions report positions in DT Midstream, marking a 3.10% increase in the last quarter. The average portfolio weight of all funds allocated to DTM stands at 0.33%, a leap of 2.45%. Yet, the total shares owned by institutions decreased by 4.35% in the last three months to 93,736K shares.
The put/call ratio of DTM impressively stands at 0.14, showcasing a bullish outlook.
Goldman Sachs Group, for instance, holds 3,207K shares, signifying 3.31% ownership of the company. However, the firm reported a decrease of 6.69% in its portfolio allocation in DTM over the last quarter. On the flip side, VTSMX – Vanguard Total Stock Market Index Fund Investor Shares augmented its portfolio allocation in DTM by 10.89% over the last quarter, capturing 3.14% ownership of the company through 3,041K shares.
Moreover, IJH – iShares Core S&P Mid-Cap ETF took a jump by increasing its portfolio allocation in DTM by 7.81% over the last quarter, holding 3,028K shares to represent 3.12% ownership of the company.
Finally, Deutsche Bank Ag exhibited a substantial change, increasing its portfolio allocation in DTM by 160.75% over the last quarter, owning 2,764K shares to represent 2.85% ownership of the company. On the other hand, NAESX – Vanguard Small-Cap Index Fund Investor Shares displayed a conflicting picture, with a decrease of 0.28% capture in shares but an overall increase of 11.62% in its allocation.
DT Midstream Background Information
DT Midstream, based in Detroit, is a pivotal figure within the natural gas industry. It serves as an owner, operator, and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, and compression, treatment, and surface facilities. The company’s important role encompasses the transportation of clean, natural gas for gas and electric utilities, power plants, marketers, large industrial customers, and energy producers across the Southern, Northeastern, and Midwestern United States and Canada.
A standout feature is the transition towards net zero greenhouse gas emissions by 2050, an ambition that includes a target of achieving 30% of its carbon emissions reduction in the coming decade. This pledge positions DT Midstream at the forefront of companies pushing for climate responsibility in the midstream sector.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
