A significant driver of top-line growth: Plains GP Holdings L.P. (PAGP)

Plains GP Holdings L.P. (NASDAQ: PAGP) stock fell -0.18% on Friday to $10.94 against a previous-day closing price of $10.96. With 3.65 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.83 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $11.05 whereas the lowest price it dropped to was $10.84. The 52-week range on PAGP shows that it touched its highest point at $12.84 and its lowest point at $9.24 during that stretch. It currently has a 1-year price target of $14.31. With its current market cap of 2.63 billion, PAGP has annualized dividend of $0.87 while the current yield stands at 7.95%. Beta for the stock currently stands at 1.69.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PAGP was down-trending over the past week, with a drop of -2.06%, but this was up by 9.29% over a month. Three-month performance dropped to -5.69% while six-month performance fell -9.96%. The stock gained 4.39% in the past year, while it has gained 7.89% so far this year. A look at the trailing 12-month EPS for PAGP yields 0.07 with Next year EPS estimates of 1.69. For the next quarter, that number is 0.47. This implies an EPS growth rate of 110.10% for this year and 9.57% for next year.

Float and Shares Shorts:

At present, 194.00 million PAGP shares are outstanding with a float of 189.23 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.18 million, which was 2.67% higher than short shares on Jun 14, 2022. In addition to Mr. Wilfred C.W. Chiang as the firm’s Chairman & CEO of PAA GP Holdings LLC, Mr. Harry N. Pefanis serves as its Pres & Director of PAA GP Holdings LLC.

Institutional Ownership:

Through their ownership of 84.97% of PAGP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.84% of PAGP, in contrast to 49.94% held by mutual funds. Shares owned by individuals account for 35.05%. As the largest shareholder in PAGP with 7.72% of the stake, Tortoise Capital Advisors LLC holds 14,993,901 shares worth 14,993,901. A second-largest stockholder of PAGP, Massachusetts Financial Services, holds 12,212,115 shares, controlling over 6.29% of the firm’s shares. Energy Income Partners LLC is the third largest shareholder in PAGP, holding 8,978,718 shares or 4.62% stake. With a 5.25% stake in PAGP, the Tortoise MLP & Pipeline Fund is the largest stakeholder. A total of 10,199,104 shares are owned by the mutual fund manager. The MFS Mid Cap Value Fund, which owns about 3.51% of PAGP stock, is the second-largest Mutual Fund holder. It holds 6,811,073 shares valued at 70.29 million. First Trust North American Energy holds 3.10% of the stake in PAGP, owning 6,011,167 shares worth 62.04 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, PAGP reported revenue of $13.69B and operating income of $249.00M. Over the past year, revenue came in at $47.39B while operating income stood at $609.00M. It generated $22.00M net income for the quarter, which came to $12.00M over the last twelve months. The EBITDA in the recently reported quarter was $577.00M and diluted EPS was $0.11. EBITDA for the full year was $2.27B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PAGP since 14 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PAGP analysts setting a high price target of $17.00 and a low target of $12.00, the average target price over the next 12 months is $14.31. Based on these targets, PAGP could surge 55.39% to reach the target high and rise by 9.69% to reach the target low. Reaching the average price target will result in a growth of 30.8% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PAGP will report FY 2022 earnings on 02/07/2023. Analysts have provided yearly estimates in a range of $4.10 being high and $0.80 being low. For PAGP, this leads to a yearly average estimate of $1.47. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Plains GP Holdings L.P. reported $0.16 EPS against a consensus estimate of $0.16. The surprise factor in the prior quarter was -$0.38. Based on analyst estimates, the high estimate for the next quarter is $1.16 and the low estimate is $0.19. The average estimate for the next quarter is thus $0.41.

Dividends & Yield:

In terms of dividends, PAGP has a current ratio of $0.87, which is $0.87 over the trailing 12-months, while a dividend of $1.17 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and PAGP currently yields $7.27. In the past year, PAGP’s dividend yield has been $7.27, but when looking at the stock over the past five years, its yield has been $8.22. Accordingly, PAGP has a current buyback yield of $9.41. This was $9.41 for the TTM.

Summary of Insider Activity:

Insiders traded PAGP stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 5 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 48,246 while 29,700 shares were sold.

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