USAC Should I Buy
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USA Compression Partners LP (USAC) is not a strong buy for a beginner investor with a long-term focus at this moment. While the company shows modest financial growth and offers a high yield, the technical indicators are bearish, hedge funds are selling heavily, and options data suggests bearish sentiment. The lack of strong positive catalysts or trading signals further supports a hold recommendation.
The technical indicators are bearish. The MACD is negative and expanding, RSI is neutral at 38.575, and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key resistance levels, with a pivot at 23.724 and resistance at 24.175 and 24.453.
The company has shown financial growth in Q4 2025, with revenue up 2.68% YoY, net income up 31.88% YoY, and EPS up 22.22% YoY. Additionally, Energy Transfer's plans for expansion and increased distribution payouts may indirectly benefit USAC.
Hedge funds are selling heavily, with a 467.21% increase in selling activity over the last quarter. Insiders are neutral, and technical indicators suggest a bearish trend. Options data also reflects bearish sentiment. Additionally, gross margin dropped by -5.42% YoY in the latest quarter.
In Q4 2025, USAC reported revenue growth of 2.68% YoY to $252.48 million, net income growth of 31.88% YoY to $27.76 million, and EPS growth of 22.22% YoY to $0.22. However, gross margin declined by -5.42% YoY to 38.18%.
Stifel raised the price target to $30 from $27 but maintained a Hold rating, reflecting a neutral stance on the stock.
