EIG veteran equity aggregator sells $147.9m in USA Compression Partners units By Investing.com

EIG Veteran Equity Aggregator, L.P., a significant shareholder in USA Compression Partners, LP (NYSE:), has executed a substantial sale of the company’s common units. On April 4, 2024, the partnership sold 5,889,297 common units at an average price of $25.12, amounting to a total value of $147.9 million.

The transaction was disclosed in a recent filing with the Securities and Exchange Commission. USA Compression Partners, LP, based in Austin, Texas, operates in the transmission industry and is known for its role in energy and transportation.

The sale has adjusted the ownership stake of EIG Veteran Equity Aggregator, leaving them with 5,882,528 common units following the transaction. This move comes amidst the partnership’s other financial activities, including the conversion of Series A Perpetual Preferred Units into common units, which is based on a conversion rate derived from the original acquisition price and subject to certain adjustments.

Investors and market watchers often keep a close eye on insider transactions such as these, as they can provide insights into the company’s performance and insider perspectives on its value. The sale by EIG Veteran Equity Aggregator is notable for its size and may be of interest to those following USA Compression Partners’ financial developments.

The details of the transaction, including the number of units sold and the remaining ownership, were made public as part of the mandatory reporting requirements for major shareholders and insiders of publicly traded companies.

InvestingPro Insights

USA Compression Partners, LP (NYSE:USAC) has been a topic of interest for investors, especially following the significant transaction by EIG Veteran Equity Aggregator, L.P. With a current market capitalization of approximately $2.73 billion, and a revenue growth of 20.09% over the last twelve months as of Q4 2023, the company exhibits signs of financial growth and stability. The partnership’s commitment to returning value to shareholders is evident through its significant dividend yield of 7.93%, which is attractive for income-focused investors.

From an investment standpoint, USA Compression Partners is trading at a high earnings multiple with a P/E ratio of 128.32, which has adjusted slightly to 117.02 for the last twelve months as of Q4 2023. This indicates that the market has high expectations for the company’s future earnings potential. Additionally, the stock is trading near its 52-week high, with the price at 93.01% of the peak, reflecting strong market confidence.

An InvestingPro Tip suggests that the stock generally trades with low price volatility, which could be a point of consideration for risk-averse investors. Moreover, the company has maintained dividend payments for 7 consecutive years, underscoring a reliable track record of returning cash to shareholders. For those interested in deeper analysis and more InvestingPro Tips, there are 9 additional tips available, providing a wealth of information for making informed investment decisions. To access these tips and benefit from the full suite of features, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

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