Investing

Bernstein Downgrades Plains All American Pipeline

Fintel Staff

Published: February 9, 2023 3:58 am

Last Updated: February 9, 2023 11:59 am

On February 7, 2023, Bernstein downgraded their outlook for Plains All American Pipeline from Outperform to Market Perform.

Analyst Price Forecast Suggests 19.40% Upside

As of February 8, 2023, the average one-year price target for Plains All American Pipeline is $15.04. The forecasts range from a low of $8.08 to a high of $21.00. The average price target represents an increase of 19.40% from its latest reported closing price of $12.60.

The projected annual revenue for Plains All American Pipeline is $66,892MM, an increase of 16.58%. The projected annual EPS is $1.37, a decrease of 5.43%.

Plains All American Pipeline Declares $0.27 Dividend

Plains All American Pipeline said on January 9, 2023 that its board of directors declared a regular quarterly dividend of $0.27 per share ($1.07 annualized). Shareholders of record as of January 30, 2023 will receive the payment on February 14, 2023. Previously, the company paid $0.22 per share.

At the current share price of $12.60 / share, the stock’s dividend yield is 8.49%. Looking back five years and taking a sample every week, the average dividend yield has been 7.59%, the lowest has been 4.40%, and the highest has been 31.10%. The standard deviation of yields is 3.63 (n=237).

The current dividend yield is 0.25 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.50. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -0.40%.

What are large shareholders doing?

AMLP – ALERIAN MLP ETF holds 58,936,270 shares representing 8.44% ownership of the company. In it’s prior filing, the firm reported owning 58,487,758 shares, representing an increase of 0.76%. The firm increased its portfolio allocation in PAA by 5.59% over the last quarter.

Alps Advisors holds 56,137,512 shares representing 8.04% ownership of the company. In it’s prior filing, the firm reported owning 58,117,530 shares, representing a decrease of 3.53%. The firm decreased its portfolio allocation in PAA by 0.50% over the last quarter.

Invesco holds 25,928,919 shares representing 3.71% ownership of the company. In it’s prior filing, the firm reported owning 23,536,914 shares, representing an increase of 9.23%. The firm decreased its portfolio allocation in PAA by 88.39% over the last quarter.

Tortoise Capital Advisors, L.l.c. holds 21,865,980 shares representing 3.13% ownership of the company. In it’s prior filing, the firm reported owning 20,697,873 shares, representing an increase of 5.34%. The firm increased its portfolio allocation in PAA by 15.47% over the last quarter.

Goldman Sachs Group holds 19,246,796 shares representing 2.76% ownership of the company. In it’s prior filing, the firm reported owning 15,611,016 shares, representing an increase of 18.89%. The firm increased its portfolio allocation in PAA by 35.13% over the last quarter.

Fund Sentiment

There are 393 funds or institutions reporting positions in Plains All American Pipeline. This is a decrease of 3 owner(s) or 0.76%.

Average portfolio weight of all funds dedicated to US:PAA is 0.5681%, an increase of 6.8056%. Total shares owned by institutions increased in the last three months by 0.61% to 423,553K shares.

Plains All American Pipeline Background Information
(This description is provided by the company.)

Plains is a publicly-traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids and natural gas. The company owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles more than 6 million barrels per day of crude oil and NGL in its Transportation segment. The company is headquartered in Houston, Texas.

This article originally appeared on Fintel