Plains All American Pipeline, L.P. (PAA) Seems To Be An Exciting Choice For The Short Term

Plains All American Pipeline, L.P. (NYSE:PAA) is now being followed by Credit Suisse, as they initiated the stock at Outperform on October 11. Analysts at Johnson Rice, started covering the stock on September 13 with a Buy rating. Brokerage firm Stifel, looks cautious as they stick to prior recommendation of Hold, in a call on August 08. However, they did change the target price from $24 to $26. BofA/Merrill analysts came out with bullish views on July 18 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.

Plains All American Pipeline, L.P. (PAA) hit an intraday high Tuesday at $22.1972. The shares finished at $22.02, after trading as low as $21.7 earlier in the session. It rose 1.06% in recent trade and currently has a stock-market value of $16.46B. Trading activity significantly improved as the volume at ready counter increased to 3,700,538 shares versus 2,597,705 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,809,438 shares. The stock is now 19.8% above against its bear-market low of $18.38 on November 29, 2017. It has retreated -25.79% since it’s 52-week high of $27.7 reached in August. Now the market price is up 17.94% on the year and up 6.69% YTD.

PAA’s 50 day simple moving average (SMA 50) price is $23.54 and its 200-day simple moving average (SMA 200) price is $23.92. The company’s stock currently has a total float of 429.63M shares. Its weekly volatility is hovering around 3.3% and felt 3.41% volatility in price over a month. On the upside, the share price will test short term resistance at around $22.25. On a downside, the stock is likely to find some support, which begins at $21.75. The failure to get near-term support could push it to $21.47.

Separately, it has been reported that multiple insider activity took place at Plains All American Pipeline, L.P. (PAA). Sr. VP and Chief Acctg Officer Herbold Chris sold 10,591 shares for $34,227 in transaction occurred on 2018/08/29. After making this transaction, the Sr. VP and Chief Acctg Officer owns a direct stake of 279,073 shares, worth $753,679, as per the last closing price. On 2017/11/15 Herbold Chris, VP-Acctg & Chief Acctg Officer at PAA, dumped 10,171 shares at an average price of $20.25 per share. The selling total is valued at $753,679.

EVP – Commercial Activities, Vonberg John had divested 6,675 shares through a trade on 2016/12/12. Following this activity, the insider holds 217,338 shares. Wall Street’s most bullish Plains All American Pipeline, L.P. (NYSE:PAA) analysts are predicting the share price to blow past $31 per share during the next 12 months. The current median share price forecast by them is $29, suggesting that the stock could increase 31.7% in that time frame. The average price target of $28.42 calls for a nearly 29.06% increase in the stock price.

When looking at valuations, Plains All American Pipeline, L.P. (PAA) has a cheap P/E of 8.67x as compared to industry average of 58.33x. Moreover, it trades for 10.52 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.76x price/book and 0.5x price/sales. Compared to others, Plains All American Pipeline, L.P. is in a different league with regards to profitability, having net margins of 3.3%. To put some perspective around this, the industry’s average net margin is 10.58%. PAA’s ROE is 12.4%, which is also considerably better than the industry’s ROE of 8.42%. It’s also not liquid in the near term, with a current ratio of 0.9. The stock has a debt/capital of 1.06.

Shares of Plains All American Pipeline, L.P. (PAA) have dropped -8.1% since the company’s last earnings report. Over the past 12 fiscal quarters, Plains All American Pipeline, L.P. (NYSE:PAA) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 7 quarters (58%), whereas at 0 occasion EPS met analyst expectations. PAA last reported earnings on November 06, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.87 per share, -99.37% change on the same period last year. That was better than consensus for $0.36. Revenue for the recent quarter stood at $8.79 billion, up 50% on last year and above the $8.66 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $7.76 billion to $12.46 billion, which should be compared with $6.94 billion generated last year. EPS is seen in a range of $0.48 to $0.82, against the $0.5 reported a year ago.