ONEOK Raises Dividend 4% to $1.07 After Q3 EPS Beat While UBS Cuts Target
ONEOK reported Q3 EPS of $1.49, beating estimates by $0.01, and raised its quarterly dividend 4% to $1.07 per share, yielding 5.5%. UBS cut its target from $114 to $103 and JPMorgan downgraded to neutral, as AE Wealth Management boosted its stake by 8.6% to 190,260 shares.
1. AE Wealth Management LLC Boosts Stake in ONEOK
AE Wealth Management LLC increased its position in ONEOK shares by 8.6% during the third quarter, according to its latest Form 13F filing with the SEC. The firm acquired an additional 15,024 shares, bringing its total holding to 190,260 shares. As of the filing date, AE Wealth Management’s ONEOK stake was valued at approximately $13.884 million, reflecting confidence in the midstream energy provider’s outlook.
2. ONEOK Reports Solid Quarterly Results and Raises Dividend
In its most recent quarter, ONEOK delivered earnings per share of $1.49, narrowly surpassing consensus estimates of $1.48. Quarterly revenue came in at $8.63 billion, topping analyst forecasts of $8.23 billion, while return on equity reached 15.12% and net margin stood at 10.58%. The company announced a quarterly dividend of $1.07 per share, up from $1.03, representing an annualized payout of $4.28 and a yield of 5.5%. The dividend will be paid on February 13 to shareholders of record as of February 2, with a payout ratio of 75.74%.
3. Hedge Funds, Institutional Ownership and Analyst Updates
Several smaller hedge funds established new positions in ONEOK during the third quarter, including City Holding Co. (approximately $28,000 invested), Global Wealth Strategies & Associates ($29,000), and Financial Consulate Inc. ($29,000). Access Investment Management added about $33,000 in the second quarter, while Twin Peaks Wealth Advisors contributed roughly $34,000. Institutional investors and hedge funds now own 69.13% of the company’s shares. On the analyst front, Barclays maintained an equal-weight rating with a price target adjustment from 78 to 76, UBS held a buy rating with a target lowered from 114 to 103, JPMorgan moved to neutral and trimmed its target from 87 to 83, Raymond James upheld an outperform view with a target cut from 100 to 82, and Jefferies initiated coverage with a hold rating and an 80 target. Of 18 analysts tracked, one rates the stock as strong buy, eight as buy and nine as hold, with an average target of 87.31.
4. Insider Purchase Signals Confidence
ONEOK director Brian L. Derksen acquired 2,500 shares in early November, increasing his direct holdings to 21,200 shares, a 13.37% rise in his position. The transaction, totaling $165,000, was disclosed in an SEC filing. Insiders currently hold 0.21% of ONEOK’s outstanding stock, underscoring management’s continued alignment with shareholder interests.