Taking the lead: NGL Energy Partners LP (NGL)

NGL Energy Partners LP (NYSE: NGL) stock jumped 5.41% on Friday to $1.56 against a previous-day closing price of $1.48. With 0.84 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.62 million shares. During the session, the Oil & Gas Refining & Marketing company that operates in wider Energy sector, reached to the highest price of $1.6500 whereas the lowest price it dropped to was $1.4995. The 52-week range on NGL shows that it touched its highest point at $2.80 and its lowest point at $1.00 during that stretch. It currently has a 1-year price target of $2.00. Beta for the stock currently stands at 1.84.

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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 NGL was up-trending over the past week, with a rise of 1.96%, but this was up by 33.33% over a month. Three-month performance surged to 25.81% while six-month performance rose 7.59%. The stock lost -28.11% in the past year, while it has gained 28.93% so far this year. A look at the trailing 12-month EPS for NGL yields -1.02 with Next year EPS estimates of -0.26. For the next quarter, that number is 0.03. This implies an EPS growth rate of 60.80% for this year and -8.30% for next year. EPS is expected to grow by 3.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -43.90%.

Float and Shares Shorts:

At present, 130.70 million NGL shares are outstanding with a float of 122.20 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.47 million, which was 0.36% higher than short shares on Sep 14, 2022. In addition to Mr. H. Michael Krimbill as the firm’s Pres, CEO, & Director of NGL Energy Holdings LLC, Ms. Linda J. Bridges serves as its Exec. VP & CFO of NGL Energy Holdings LLC.


Institutional Ownership:

Through their ownership of 27.26% of NGL’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.81% of NGL, in contrast to 23.81% held by mutual funds. Shares owned by individuals account for 15.13%. As the largest shareholder in NGL with 15.09% of the stake, Invesco Advisers, Inc. holds 19,717,009 shares worth 19,717,009. A second-largest stockholder of NGL, Prescott Group Capital Management, holds 3,720,888 shares, controlling over 2.85% of the firm’s shares. JPMorgan Securities LLC is the third largest shareholder in NGL, holding 2,827,930 shares or 2.16% stake. With a 9.50% stake in NGL, the Invesco SteelPath MLP Income Fund is the largest stakeholder. A total of 12,412,037 shares are owned by the mutual fund manager. The Invesco SteelPath MLP Select 40 F, which owns about 5.59% of NGL stock, is the second-largest Mutual Fund holder. It holds 7,304,972 shares valued at 8.84 million. Global X MLP ETF holds 0.04% of the stake in NGL, owning 50,000 shares worth 60500.0.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NGL since 3 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 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 NGL analysts setting a high price target of $2.00 and a low target of $2.00, the average target price over the next 12 months is $2.00. Based on these targets, NGL could surge 28.21% to reach the target high and rise by 28.21% to reach the target low. Reaching the average price target will result in a growth of 28.21% 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. NGL will report FY 2023 earnings on 06/01/2023. Analysts have provided yearly estimates in a range of $0.54 being high and -$0.24 being low. For NGL, this leads to a yearly average estimate of $0.15. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NGL Energy Partners LP surprised analysts by -$0.33 when it reported -$0.21 EPS against a consensus estimate of $0.12. The surprise factor in the prior quarter was -$0.11. Based on analyst estimates, the high estimate for the next quarter is $0.15 and the low estimate is $0.03. The average estimate for the next quarter is thus $0.09.

Summary of Insider Activity:

Insiders traded NGL stock several times over the past three months with 12 Buys and 3 Sells. In these transactions, 512,500 shares were bought while 31,828 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 6 over the past year. The total number of shares bought during that period was 935,000 while 67,696 shares were sold.

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