USAC USA Compression Partners LP

USA Compression Partners (USAC) has experienced a modest pullback recently but maintains strong multi-year returns. While some analyses suggest it is undervalued with a fair value of $26.50 due to high contract renewal rates, another view indicates its valuation might be stretched with a high price-to-earnings multiple of 29.9x compared to an industry average of 18.4x. Investors should consider these differing perspectives to determine if USAC is trading below its true worth or if its current price already accounts for future growth.

This article provides an analysis of Usa Compression Partners Lp (NASDAQ: USAC), highlighting a neutral sentiment across all time horizons and suggesting a wait-and-see approach. It details institutional trading strategies, including position trading, momentum breakout, and risk hedging, along with multi-timeframe signal analysis. The report also emphasizes an exceptional 27.4:1 risk-reward setup.

MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. significantly increased its stake in USA Compression Partners, LP (NYSE:USAC) in Q2, acquiring an additional 654,001 shares, bringing its total holdings to 5,305,265 shares valued at $128.97 million, representing about 4.32% ownership. USA Compression Partners offers an attractive 8.5% dividend yield and has received mixed analyst ratings with a consensus "Hold" and a $25 price target. The company recently reported Q3 earnings per share of $0.26, beating analyst estimates, and analysts predict $1.05 earnings per share for the current year.

USA Compression Partners (USAC) provides natural gas compression services and is forecast to grow earnings by 29.46% per year. The company's stock shows stable price volatility and has recently acquired J-W Power Company for $890 million, indicating expansion and strengthened contract pipelines due to sustained natural gas demand and LNG infrastructure growth. Despite negative shareholders' equity and dividend coverage concerns, its strategic acquisitions and operational efficiencies are expected to drive improved free cash flow.

Natixis significantly reduced its stake in USA Compression Partners (NYSE:USAC) by 53.9% in Q2, selling 515,500 shares and retaining 440,800 shares valued at $10.72 million. Despite this, other major investors like Northwestern Mutual Wealth Management Co. and Global Retirement Partners LLC increased their holdings. USA Compression Partners offers an 8.7% dividend yield and analysts have a mixed "Hold" rating with an average target price of $25.00.

USA Compression Partners has announced an $860 million deal to acquire J-W Power Company, significantly expanding its natural gas compression services. The acquisition, involving a mix of cash and common units, is expected to close in Q1 2026, boosting USA Compression's scale, geographic reach, and service offerings. This strategic move is anticipated to be accretive to distributable cash flow and accelerate deleveraging for USA Compression.