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.
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.
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.
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.