Inclusive Capital Partners Now Owns 8.5% of Enviva Partners

Fintel reports that Inclusive Capital Partners has filed a 13D/A form with the SEC disclosing ownership of 5.75MM shares of Enviva Partners LP (EVA). This represents 8.5% of the company.

In their previous filing dated March 8, 2022 they reported 5.22MM shares and 7.80% of the company, an increase in shares of 10.21% and an increase in total ownership of 0.70% (calculated as current – previous percent ownership).

Analyst Price Forecast Suggests 74.46% Upside

As of March 2, 2023, the average one-year price target for Enviva Partners is $65.79. The forecasts range from a low of $51.51 to a high of $84.00. The average price target represents an increase of 74.46% from its latest reported closing price of $37.71.

The projected annual revenue for Enviva Partners is $1,617MM, an increase of 47.77%. The projected annual non-GAAP EPS is $0.83.

What is the Fund Sentiment?

There are 410 funds or institutions reporting positions in Enviva Partners. This is an increase of 23 owner(s) or 5.94% in the last quarter. Average portfolio weight of all funds dedicated to EVA is 0.45%, a decrease of 28.27%. Total shares owned by institutions increased in the last three months by 5.78% to 65,729K shares. The put/call ratio of EVA is 1.86, indicating a bearish outlook.

What are large shareholders doing?

Riverstone Holdings holds 28,262K shares representing 42.20% ownership of the company. In it’s prior filing, the firm reported owning 28,116K shares, representing an increase of 0.52%. The firm decreased its portfolio allocation in EVA by 9.65% over the last quarter.

Capital International Investors holds 4,506K shares representing 6.73% ownership of the company. In it’s prior filing, the firm reported owning 3,492K shares, representing an increase of 22.50%. The firm increased its portfolio allocation in EVA by 4.73% over the last quarter.

ABALX – AMERICAN BALANCED FUND holds 3,332K shares representing 4.98% ownership of the company. In it’s prior filing, the firm reported owning 2,331K shares, representing an increase of 30.03%. The firm increased its portfolio allocation in EVA by 18.07% over the last quarter.

XME – SPDR Metals & Mining ETF holds 1,131K shares representing 1.69% ownership of the company. In it’s prior filing, the firm reported owning 966K shares, representing an increase of 14.64%. The firm decreased its portfolio allocation in EVA by 16.44% over the last quarter.

AIVSX – INVESTMENT CO OF AMERICA holds 1,110K shares representing 1.66% ownership of the company. No change in the last quarter.

Enviva Partners Declares $0.90 Dividend

On February 8, 2023 the company declared a regular quarterly dividend of $0.90 per share ($3.62 annualized). Shareholders of record as of February 21, 2023 received the payment on February 24, 2023. Previously, the company paid $0.90 per share.

At the current share price of $37.71 / share, the stock’s dividend yield is 9.60%. Looking back five years and taking a sample every week, the average dividend yield has been 7.17%, the lowest has been 3.88%, and the highest has been 11.88%. The standard deviation of yields is 1.46 (n=235).

The current dividend yield is 1.67 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is -1.44. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.34%, demonstrating that it has increased its dividend over time.

Enviva Background Information
(This description is provided by the company.)

Enviva Partners, LP is a master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets. The Partnership sells a significant majority of its wood pellets through long-term, take-or-pay off-take contracts with creditworthy customers in the United Kingdom, Europe, and increasingly in Japan. The Partnership owns and operates nine plants with a combined production capacity of approximately 5.3 million metric tons per year in Virginia, North Carolina, South Carolina, Georgia, Florida, and Mississippi. In addition, the Partnership exports wood pellets through its marine terminals at the Port of Chesapeake, Virginia and the Port of Wilmington, North Carolina and from third-party marine terminals in Savannah, Georgia, Mobile, Alabama, and Panama City, Florida.

This article originally appeared on Fintel

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