One Reason Global Partners (GLP) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of Global Partners (GLP) were falling 7% to $38.98 Friday after pricing its public offering of 3.565 million common units.

The energy supply company priced the 3.565 million common units in its public offering at $40.24 a common unit. The underwriters of the offering have a 30-day option to buy up to an additional 534,750 common units to cover any overallotments in the offering.

Global Partners said it plans to use the net proceeds from the offering to reduce its indebtedness outstanding under its revolving credit facility.

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The company expects to close the sale of commons units on Dec. 10.

TheStreet Ratings team rates GLOBAL PARTNERS LP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate GLOBAL PARTNERS LP (GLP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 64.83% and other important driving factors, this stock has surged by 25.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 64.7% when compared to the same quarter one year prior, rising from $25.82 million to $42.51 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GLOBAL PARTNERS LP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 296.15% to $144.37 million when compared to the same quarter last year. In addition, GLOBAL PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -1.64%.
  • You can view the full analysis from the report here: GLP Ratings Report

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