The growth track for DCP Midstream LP (DCP) has changed recently

DCP Midstream LP (NYSE: DCP) stock fell -0.82% on Friday to $37.69 against a previous-day closing price of $38.00. With 1.63 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.74 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $38.38 whereas the lowest price it dropped to was $37.34. The 52-week range on DCP shows that it touched its highest point at $39.54 and its lowest point at $23.58 during that stretch. It currently has a 1-year price target of $44.17. With its current market cap of 7.88 billion, DCP has annualized dividend of $1.72 while the current yield stands at 4.56%. Beta for the stock currently stands at 2.67.

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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 DCP was down-trending over the past week, with a drop of -1.10%, but this was down by -3.04% over a month. Three-month performance surged to 35.33% while six-month performance rose 14.07%. The stock gained 44.41% in the past year, while it has gained 37.15% so far this year. A look at the trailing 12-month EPS for DCP yields 3.71 with Next year EPS estimates of 4.96. For the next quarter, that number is 1.13. This implies an EPS growth rate of 190.80% for this year and 17.50% for next year. EPS is expected to grow by 28.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -0.60%.

Float and Shares Shorts:

At present, 208.40 million DCP shares are outstanding with a float of 90.39 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.03 million, which was 2.41% higher than short shares on Jun 14, 2022. In addition to Mr. Wouter T. van Kempen as the firm’s Chairman, Pres & CEO of DCP Midstream GP, LLC, Mr. Sean P. O’Brien serves as its Group VP & CFO of DCP Midstream GP, LLC.

Institutional Ownership:

Through their ownership of 34.95% of DCP’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 56.83% of DCP, in contrast to 18.16% held by mutual funds. Shares owned by individuals account for 16.77%. As the largest shareholder in DCP with 6.34% of the stake, ALPS Advisors, Inc. holds 13,204,470 shares worth 13,204,470. A second-largest stockholder of DCP, Tortoise Capital Advisors LLC, holds 9,173,779 shares, controlling over 4.40% of the firm’s shares. Harvest Fund Advisors LLC is the third largest shareholder in DCP, holding 8,125,142 shares or 3.90% stake. With a 6.32% stake in DCP, the Alerian MLP ETF is the largest stakeholder. A total of 13,169,513 shares are owned by the mutual fund manager. The Goldman Sachs MLP Energy Infrastr, which owns about 0.88% of DCP stock, is the second-largest Mutual Fund holder. It holds 1,825,000 shares valued at 69.39 million. Global X MLP ETF holds 0.85% of the stake in DCP, owning 1,779,403 shares worth 67.65 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DCP since 7 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 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 DCP analysts setting a high price target of $47.00 and a low target of $38.00, the average target price over the next 12 months is $44.29. Based on these targets, DCP could surge 24.7% to reach the target high and rise by 0.82% to reach the target low. Reaching the average price target will result in a growth of 17.51% 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. DCP will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $3.57 being high and $3.57 being low. For DCP, this leads to a yearly average estimate of $3.57. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. DCP Midstream LP surprised analysts by $0.66 when it reported $1.77 EPS against a consensus estimate of $1.11. The surprise factor in the prior quarter was -$0.66. Based on analyst estimates, the high estimate for the next quarter is $1.24 and the low estimate is $0.83. The average estimate for the next quarter is thus $1.13.

Summary of Insider Activity:

Insiders traded DCP stock several times over the past three months with 3 Buys and 1 Sells. In these transactions, 11,400 shares were bought while 2,750 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 11,484 while 2,750 shares were sold.

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