In a report released today, Christopher Van Horn from B.Riley FBR maintained a Hold rating on Spark Energy (SPKE), with a price target of $10. The company’s shares closed on Friday at $10.57.
Van Horn observed:
“Spark Energy (SPKE – Neutral, $10 PT) reported 2Q19 results, BMO, on August 8. The company reported adjusted EBITDA of $13.6M, well below our estimate of $26.2M. The adjusted EBITDA miss was partly driven by better electricity and gas margins, but with lower revenues and higher G&A costs more than offsetting. The retail margin of $41.7M was also below our expectations, largely due to better electricity margins Y/Y being more than offset by lower natural gas margins. With the negative effects of severe cold weather in January 2018, on hedges that lasted throughout 2018 and impacted liquidity, we think SPKE has improved its position as we head through 2019. We believe it should benefit from rising unit margins without these hedges in place and the non-renewal of marginally profitable commercial contracts.”
According to TipRanks.com, Horn is a 2-star analyst with an average return of 0.4% and a 45.5% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Motorcar Parts Of America, Standard Motor Products, and Cooper Tire Rubber.
Currently, the analyst consensus on Spark Energy is a Hold with an average price target of $10.
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Based on Spark Energy’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $7.12 million. In comparison, last year the company had a net profit of $7.5 million.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SPKE in relation to earlier this year.
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Spark Energy, Inc. engages in the provision of electricity and natural gas. It operates through the Retail Natural Gas and Retail Electricity segments. The Retail Natural Gas segment purchases natural gas through physical and financial transactions with market counterparts.