John M. Musgrave, CEO and President of NXG Cushing Midstream Energy Fund (NYSE:SRV), recently acquired 773 common shares of the fund. The shares were purchased at a price of $41.80 each, amounting to a total value of $32,311. This transaction was part of a rights offering that expired on November 14, 2024, with shares confirmed to rights holders on November 21, 2024. Following this acquisition, Musgrave's total holdings in the fund increased to 3,094.8001 shares, including shares acquired through an Automatic Dividend Reinvestment Plan.
In other recent news, NXG Cushing Midstream Energy Fund has announced a new rights offering. This development followed several agreements, including a dealer manager agreement with NXG Investment Management and UBS Securities LLC. This agreement pertains to the issuance of transferable rights to current shareholders, allowing them to subscribe for up to 1,004,176 new common shares. Shareholders as of October 23, 2024, are eligible to participate in this offering. Each shareholder will receive one right for each common share they own, enabling them to purchase one new common share for every three rights they possess. The fund also partnered with Equiniti Trust Company, LLC, and EQ Fund Solutions, LLC, to serve as the subscription and information agents for the rights offering. These recent developments are part of the fund's previously filed shelf registration statement with the Securities and Exchange Commission.
InvestingPro Insights
The recent acquisition of shares by John M. Musgrave aligns with NXG Cushing Midstream Energy Fund's (NYSE:SRV) strong dividend profile. According to InvestingPro data, SRV boasts an impressive dividend yield of 12.16% for the current year, with the last ex-dividend date on November 4, 2024. This high yield is particularly noteworthy given the fund's market capitalization of $134.21 million.
InvestingPro Tips reveal that SRV has maintained dividend payments for 18 consecutive years, underscoring its commitment to shareholder returns. This consistency in dividend payments may be a key factor attracting insider investment, such as Musgrave's recent purchase.
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 suggest that SRV has delivered strong returns to investors over the past year, potentially justifying its relatively high P/E ratio of 27.49.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics that could provide a fuller picture of SRV's investment potential. Currently, there are 5 more InvestingPro Tips available for SRV, which could offer valuable context for the fund's performance and outlook.
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