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J. Heath Deneke, the Chairman, President, and CEO of Summit Midstream Corp (NYSE:SMC), recently sold a significant number of shares in the company. According to a filing with the Securities and Exchange Commission, Deneke sold a total of 3,000 shares over several transactions on March 19, 20, and 21. The shares were sold at prices ranging from $36.30 to $38.15, totaling $111,712. The stock, which has shown significant volatility with a beta of 2.28, is currently trading near $36.22, having delivered an impressive 86% return over the past year. According to InvestingPro analysis, the stock appears to be fairly valued at current levels.
These transactions were executed under a pre-established trading plan in compliance with Rule 10b5-1, which allows company insiders to set up a predetermined plan for selling stocks. Following these sales, Deneke retains ownership of 271,170 shares in Summit Midstream Corp. InvestingPro analysis reveals the company faces some financial challenges, with short-term obligations exceeding liquid assets and a current ratio of 0.68. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into SMC’s financial health and growth prospects.
In other recent news, Summit Midstream Corporation has completed the acquisition of Moonrise Midstream, LLC for $90 million, consisting of $70 million in cash and $20 million in Summit equity. This acquisition adds significant infrastructure, including 80 miles of natural gas and 25 miles of crude oil gathering pipelines, and a 65 million cubic feet per day natural gas processing plant in Colorado. The company expects this move to enhance its operations in the DJ Basin, providing increased processing capability and supporting volume growth. Additionally, Summit Midstream has issued $250 million in additional senior secured notes, bringing the total aggregate principal amount of the notes to $825 million. These notes, due in 2029, are part of a strategy to manage the company’s debt and liquidity needs, with proceeds intended to repay a portion of its asset-based lending credit facility. The notes are guaranteed by Summit Midstream and certain subsidiaries, secured by the same collateral backing its lenders. This financial activity aligns with Summit’s broader strategy to consolidate its operations and manage its financial obligations effectively.
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