Antero Midstream Insiders Sold High, EPS Misses Persist
Two Antero Midstream insiders sold shares in August at $21-$22, prices the stock has since failed to reclaim. The company has missed earnings three of four quarters, casting doubt on the 12.9x valuati
Antero Midstream Insiders Sold Near Highs Amid EPS Misses
NEW YORK, October 21 —
When two Antero Midstream Corporation (AM) insiders sold at $22.01 and $21.27 in August, they were clearing prices the stock has since failed to reclaim. The business generates nearly $1 billion in annual operating cash flow yet missed earnings estimates three times in four quarters, most recently by 18.2%, a contradiction investors must price.
- OCF $961M TTM; FCF $433M, reflecting significant capital investment in the Appalachian gathering network.
- Most recent quarter EPS $0.27 vs. $0.33 consensus, an 18.2% miss; three of four quarters missed.
- Two insiders sold combined ~$458K at $21.27 and $22.01 in August; analyst consensus target $24.00.
Exit Prices That Aged Well
Sheri Pearce's 16,000-share open-market sale on August 4 at $22.01 and director Brooks Klimley's 5,000 shares on August 6 at $21.27 together totaled approximately $458,000, and both sellers cleared better prices than today's ~$20.75. The 90-day window recorded zero open-market purchases against those sales. Insiders retain 30.6% of shares outstanding, so neither transaction signals a wholesale exit, and the October equity grants to seven directors represent routine compensation rather than conviction buying. Two decision-makers still reduced exposure at prices the market has not recovered to, which sharpens the question of what they saw.
The Cash Story Has a Catch
Antero Midstream gathers and processes natural gas and handles water delivery and flowback disposal for Antero Resources' West Virginia and Ohio wells, effectively a toll-road on a single customer's Appalachian production, with a 79.6% gross margin and $1.31 billion in TTM revenue growing 8.3%. The gap between those headline metrics and EPS traces partly to capital intensity: FCF of $433 million versus OCF of $961 million means roughly $528 million cycling back into the gathering network each year, on top of $3.61 billion in total debt. Three misses in four quarters suggest the drag is persistent rather than a one-quarter scheduling artifact.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| AM | $9.8B | 12.9x | +14.1% |
| AR | $11.8B | 8.2x | +21.0% |
| MPLX | $59.3B | 12.2x | +15.4% |
| WES | $18.4B | 11.6x | +16.1% |
| PAGP | $6.5B | 13.5x | +57.6% |
| PAA | $18.3B | 13.3x | +54.4% |
The Number That Settles the Argument
At 12.9x forward earnings and a consensus price target of $24.00, the valuation case for AM depends entirely on EPS recovering toward what the operating cash flow suggests is possible, a case worth stress-testing with a DCF calculator. The specific test is next quarter's EPS relative to the current $0.33 consensus: a fourth miss in five quarters shifts the pattern from incidental to structural. Two insiders who sold at $21, $22 in August have been proven, for now, to have read the near-term setup more accurately than the analyst community's target implies. Run the free Antero Midstream Corporation deep-dive to assess the current setup.
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Frequently Asked Questions
Did Antero Midstream insiders recently sell shares?
Yes. In August, Sheri Pearce sold 16,000 shares on August 4 at $22.01, and director Brooks Klimley sold 5,000 shares on August 6 at $21.27, totaling approximately $458,000. The stock has since fallen to approximately $20.75.
How many times has Antero Midstream missed earnings?
The company has missed earnings estimates in three of the past four quarters, most recently by 18.2% when it reported EPS of $0.27 against a $0.33 consensus estimate.
What is Antero Midstream's current valuation?
The company trades at 12.9x forward earnings with an analyst consensus price target of $24.00. The valuation case depends on EPS recovering toward levels the company's $961 million operating cash flow suggests is possible.
Why is there a gap between Antero Midstream's operating and free cash flow?
The company generates $961 million in annual operating cash flow but only $433 million in free cash flow, reflecting significant capital intensity: roughly $528 million cycles back into the Appalachian gathering network annually, alongside $3.61 billion in total debt.
Two Antero Midstream insiders sold a combined approximately $458,000 in shares at $21.27 and $22.01 in August, and the stock now trades below both of those prices at around $20.75. The sales came as the company missed earnings estimates in three of its last four quarters — most recently by 18.2% — even as the underlying business generates nearly $1 billion in annual operating cash flow.