BOSTON—In a recent transaction, MFN Partners, LP, a significant shareholder of CNX Resources Corp (NYSE:CNX), sold a substantial portion of its holdings in the company. The sale comes as CNX shares have experienced a sharp 16.8% decline over the past week, despite posting a robust 48% gain over the past year. According to a Form 4 filed with the Securities and Exchange Commission, MFN Partners disposed of 1,075,000 shares of CNX Resources at an average price of $31.09 per share, totaling approximately $33.4 million.
The shares were sold on January 6, 2025, in multiple transactions with prices ranging from $30.62 to $31.28. After the sale, MFN Partners still holds 13,925,000 shares of CNX Resources, maintaining its position as a major stakeholder in the company, which currently has a market capitalization of $4.6 billion and trades at an attractive P/E ratio of 8.3x.
MFN Partners, LP, along with its affiliated entities, operates from Boston, Massachusetts, and is known for its investment activities. The firm's managing members, Farhad Nanji and Michael F. DeMichele, are involved in overseeing these transactions. Both individuals, along with the entities, have disclaimed beneficial ownership of the securities except to the extent of their pecuniary interest. According to InvestingPro, CNX management has been actively buying back shares, with 12 additional exclusive insights available to subscribers.
This transaction highlights ongoing changes in the holdings of CNX Resources, a company engaged in the exploration and production of natural gas. Based on InvestingPro's Fair Value analysis, the stock is currently trading near its fair value. Investors and market watchers will be keenly observing how these changes might impact the company's stock performance in the coming days, particularly with earnings scheduled for January 23.
In other recent news, CNX Resources Corporation expressed concern regarding the Treasury Department's final rules for the Section 45V Hydrogen Production Tax Credit, stating that the rules do not provide sufficient incentive for its hydrogen project involving coal mine methane. Despite this, the company plans to explore alternative incentive avenues such as voluntary markets and alternative tax incentives. Analyst Mark Lear (NYSE:LEA) from Piper Sandler rates the company as underweight with a price target of $23.
In parallel, Diversified Energy Co. is also navigating the new tax credit rules, with Truist Securities indicating a positive outlook for the company and raising the stock target to $27. The firm believes the company may benefit from premium Coal Mine Methane purchase agreements indirectly linked to the tax credits.
Additionally, CNX Resources completed a significant acquisition of all membership interests in three entities owned by Apex Upstream, LLC, and Apex WML, LLC, in a cash deal valued at $505 million. The transaction is expected to close in the first quarter of 2025.
Analysts from Mizuho (NYSE:MFG) Securities and Truist Securities adjusted their stance on CNX Resources. Mizuho downgraded the stock from Neutral to Underperform, while Truist Securities increased the stock's price target but later downgraded it from Buy to Hold after CNX's third-quarter financial results. These are among the recent developments as both CNX Resources and Diversified Energy Co. adapt to the evolving landscape of energy production.
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