Plains GP Holdings L.P. (PAGP) Testing Investors’ Patience Right Now


Tortoise Capital Advisors LLC recently announced the acquisition of new stake in Plains GP Holdings L.P. (NYSE:PAGP). The institutional investor has increased its shareholding in the Energy company by 58.42% to 18.67 million shares with purchase of 6.89 million shares. This fresh investment now brings its stake to 10.13% valued currently at $148.25 million. In addition, Chickasaw Capital Management LLC raised its holdings by 0.25 million to 10.47 million shares. And Massachusetts Financial Services.. has lifted its position by 7.50% or 0.56 million shares – to 7.99 million shares.

With over 3.38 million Plains GP Holdings L.P. (PAGP) shares trading Tuesday and a closing price of $7.23 on the day, the dollar volume was approximately $24.43 million. The shares have shown a negative weekly performance of -5.49% and its price on 08/25/20 lost nearly -2.56%. Currently, there are 184.00M common shares owned by the public and among those 178.76M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for PAGP have a consensus price objective of $12.06. The analysts have set the share’s price value over the next 12 months at a high of $17.00 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Plains GP Holdings L.P. stock is 2.10 for the next 12 months. But an upside of 57.47% will see the stock hit the forecast high price target while mean target price for the stock is $12.00.

Insiders at the company have transacted a total of 35 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 28 of these insider trades were purchases, accounting for 3,109,384 shares. Insider sales of the common stock occurred on 7 occasions, with total insider shares sold totaling 17,476,322 shares.

The top 3 mutual fund holders in Plains GP Holdings L.P. are Tortoise MLP & Pipeline Fund, First Trust North American Energy, and MFS Mid Cap Value Fund. Tortoise MLP & Pipeline Fund owns 10.13 million shares of the company’s stock, all valued at over $80.42 million. The company bought an additional 1.52 million shares recently to bring their total holdings to about 5.50% of the shares outstanding. First Trust North American Energy sold 23604.0 shares to see its total holdings shrink to 6.09 million shares valued at over $48.35 million and representing 3.31% of the shares outstanding. MFS Mid Cap Value Fund now owns shares totaling to 2.57% of the shares outstanding.

Shares of Plains GP Holdings L.P. (NYSE: PAGP) opened at $7.43, up $0.01 from a prior closing price of $7.42. However, the script later closed the day at $7.23, down -2.56%. The company’s stock has a 5-day price change of -5.49% and -31.53% over the past three months. PAGP shares are trading -61.85% year to date (YTD), with the 12-month market performance down to -65.98% lower. It has a 12-month low price of $3.04 and touched a high of $23.36 over the same period. Currently, 3.38 million shares have been traded, compared to an average intraday trading volume of 2.94 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -10.39%, -15.07%, and -39.94% respectively.

Institutional ownership of Plains GP Holdings L.P. (NYSE: PAGP) shares accounts for 83.40% of the company’s 184.00M shares outstanding. Mutual fund holders own 43.46%, while other institutional holders and individual stakeholders account for 7.73% and 38.61% respectively.

It has a market capitalization of $1.36B and a beta (3y monthly) value of 2.19. The earnings-per-share (ttm) stands at -$2.41. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.39% over the week and 4.58% over the month.

Analysts forecast that Plains GP Holdings L.P. (PAGP) will achieve an EPS of $0.28 for the current quarter, $0.32 for the next quarter and $1.09 for 2021. The lowest estimate earnings-per-share for the quarter is $0.13 while analysts give the company a high EPS estimate of $0.38. Comparatively, EPS for the current quarter was $0.41 a year ago. Earnings per share for the fiscal year are expected to decrease by -7.20%, and 241.60% over the next financial year. EPS should shrink at an annualized rate of -13.50% over the next five years, compared to 9.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Plains GP Holdings L.P. (PAGP) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 3 of the 15 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the PAGP, a number of firms have released research notes about the stock. BofA Securities stated their Buy rating for the stock in a research note on July 21, 2020, with the firm’s price target at. BofA/Merrill coverage for the Plains GP Holdings L.P. (PAGP) stock in a research note released on May 18, 2020 offered a Underperform rating with a price target of. Credit Suisse was of a view on April 02, 2020 that the stock is Neutral, while Barclays gave the stock Equal Weight rating on March 24, 2020, issuing a price target of $8. Stifel on their part issued Hold rating on March 12, 2020.


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