Todd Sunderland, a portfolio manager at NXG Cushing Midstream Energy Fund (NYSE:SRV), recently acquired 45 common shares of the fund, totaling $1,880. The shares were purchased at a price of $41.80 per share. This transaction was part of a rights offering that concluded on November 14, 2024, with the allocation confirmed on November 21, 2024. Following this acquisition, Sunderland holds approximately 156.676 shares, which includes shares obtained through the fund's Automatic Dividend Reinvestment Plan.
In other recent news, NXG Cushing Midstream Energy Fund has announced a new rights offering. This development involves the issuance of transferable rights to existing shareholders, enabling them to subscribe for up to 1,004,176 new common shares. The rights offering is part of the fund's shelf registration statement previously filed with the Securities and Exchange Commission.
In relation to this, NXG Cushing Midstream Energy Fund has entered into a dealer manager agreement with its own management firm, NXG Investment Management, and UBS Securities LLC. Additionally, Equiniti Trust Company, LLC, and EQ Fund Solutions, LLC have been enlisted to serve as the subscription and information agents for the rights offering.
The offering's legal aspects are covered by an opinion from Skadden, Arps, Slate, Meagher & Flom LLP. These are the recent developments for NXG Cushing Midstream Energy Fund.
InvestingPro Insights
Todd Sunderland's recent acquisition of NXG Cushing Midstream Energy Fund (NYSE:SRV) shares aligns with some intriguing financial metrics and trends. According to InvestingPro data, SRV boasts a substantial dividend yield of 12.16%, with its most recent ex-dividend date on November 4, 2024. This high yield is particularly noteworthy given that one of the InvestingPro Tips highlights SRV's 18-year streak of maintaining dividend payments, underscoring the fund's commitment to shareholder returns.
The fund's performance has been robust, with a year-to-date price total return of 47.85% and a one-year return of 42.89%. These figures support another InvestingPro Tip indicating a strong return over the last five years. Currently trading at 94.34% of its 52-week high, SRV appears to be maintaining investor confidence.
However, potential investors should note that SRV has a P/E ratio of 27.49, which may be considered high by some standards. Additionally, an InvestingPro Tip suggests that the fund suffers from weak gross profit margins, which could impact its long-term profitability.
For those interested in a more comprehensive analysis, InvestingPro offers 5 additional tips for SRV, providing a deeper understanding of the fund's financial health and market position.
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