There is no way Plains GP Holdings L.P. (PAGP) can keep these numbers up

Plains GP Holdings L.P. (NASDAQ: PAGP) stock fell -0.98% on Friday to $12.16 against a previous-day closing price of $12.28. With 2.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.82 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $12.48 whereas the lowest price it dropped to was $12.14. The 52-week range on PAGP shows that it touched its highest point at $13.02 and its lowest point at $9.24 during that stretch. It currently has a 1-year price target of $14.64. With its current market cap of 3.07 billion, PAGP has annualized dividend of $0.87 while the current yield stands at 7.15%. Beta for the stock currently stands at 1.60.

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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 -5.74%, but this was up by 2.70% over a month. Three-month performance surged to 19.22% while six-month performance rose 6.29%. The stock gained 24.08% in the past year, while it has gained 19.92% so far this year. A look at the trailing 12-month EPS for PAGP yields 0.58 with Next year EPS estimates of 2.15. For the next quarter, that number is 0.61. This implies an EPS growth rate of 110.10% for this year and 64.67% 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 84.93% of PAGP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.86% of PAGP, in contrast to 51.92% held by mutual funds. Shares owned by individuals account for 31.76%. As the largest shareholder in PAGP with 7.33% of the stake, Tortoise Capital Advisors LLC holds 14,237,133 shares worth 14,237,133. A second-largest stockholder of PAGP, Massachusetts Financial Services, holds 12,243,645 shares, controlling over 6.30% of the firm’s shares. Chickasaw Capital Management LLC is the third largest shareholder in PAGP, holding 8,821,446 shares or 4.54% stake. With a 5.50% stake in PAGP, the Tortoise MLP & Pipeline Fund is the largest stakeholder. A total of 10,675,403 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 81.6 million. First Trust North American Energy holds 3.21% of the stake in PAGP, owning 6,225,204 shares worth 74.58 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PAGP since 13 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 3 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 $18.00 and a low target of $12.00, the average target price over the next 12 months is $14.77. Based on these targets, PAGP could surge 48.03% to reach the target high and fall by -1.32% to reach the target low. Reaching the average price target will result in a growth of 21.46% 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 $2.90 being high and $0.78 being low. For PAGP, this leads to a yearly average estimate of $1.39. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Plains GP Holdings L.P. surprised analysts by -$0.25 when it reported $0.16 EPS against a consensus estimate of $0.41. The surprise factor in the prior quarter was -$0.38. Based on analyst estimates, the high estimate for the next quarter is $1.27 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.47.

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 $1.15 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 $6.54. In the past year, PAGP’s dividend yield has been $6.54, but when looking at the stock over the past five years, its yield has been $8.16. Accordingly, PAGP has a current buyback yield of $8.43. This was $8.43 for the TTM.

Summary of Insider Activity:

Insiders traded PAGP stock several times over the past three months with 8 Buys and 0 Sells. In these transactions, 45,715 shares were bought while 0 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 75,415 while 29,700 shares were sold.

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