Antero Midstream Stock (NYSE:AM) Hits 52 Wk Highs Before Taking a Pause

Antero Midstream's stock (NYSE: AM) has achieved a significant milestone as its price hit a new 52-week high during early trading on Tuesday before settling the day mildly down. The shares of the energy company soared to $15.30, before closing out at $15.10.

This brings the YTD performance for AM stock to 19.65%, a figure which is broadly in line with that of the S&P 500 (+20.88% over the same time frame). The dividend yield is something that helps deliver an outperformance when considered in totality.

To understand the company's performance better, one must consider its recent trading averages. Antero Midstream's fifty-day moving average currently stands at $14.50, while the longer-term two hundred-day moving average is at $14.36. These averages provide insight into the stock's steady upward trajectory leading to its latest peak.

Investors paid close attention to Antero Midstream’s last earnings report on July 31st, where the company announced $0.18 earnings per share, falling short of the consensus estimate of $0.22. Despite this, the company has demonstrated strong financial health, with a return on equity of 19.40% and an impressive net margin of 36.19%.

The quarterly dividend announcement from Antero Midstream also plays a significant role in investor interest. The company has declared a dividend of $0.225 per share, which is indicative of a high yield of 5.90%. Although the dividend payout ratio is currently 112.50%, investors seem buoyed by the consistent payouts; the last ex-dividend date registered was July 24th.

Institutional investors and hedge funds account for a significant portion of Antero Midstream’s ownership, holding 53.97% of the company’s stock. It underlines a strong institutional belief in the potential and stability of Antero Midstream’s operations.

As a company, Antero Midstream splits its focus into two primary segments: Gathering and Processing, and Water Handling. This specialisation allows the company to strategically manage midstream energy assets within the resource-rich Appalachian Basin efficiently.

Antero Midstream's latest achievement of hitting a new 52-week high reflects investor confidence and the company's solid market position. With positive adjustments from analysts, a substantial return on equity, and strong institutional backing, the company continues to be a notable player in the midstream energy sector.