Plains All American Pipeline L.P. [PAA] Revenue clocked in at $26.48 billion, down -53.07% YTD: What’s Next?

Plains All American Pipeline L.P. [NYSE: PAA] closed the trading session at $8.63 on 11/25/20. The day’s price range saw the stock hit a low of $8.43, while the highest price level was $8.795. The company report on November 3, 2020 that Plains All American Pipeline and Plains GP Holdings Announce $500 Million Common Equity Repurchase Program.

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Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP Holdings, L.P. (NYSE: PAGP) announced that the board of directors of PAA GP Holdings LLC has approved a $500 million common equity repurchase program (the “Program”) to be utilized as an additional method of returning capital to investors.

“We are committed to managing our business and executing our financial strategy in a disciplined manner for all of our investors. This includes maximizing Free Cash Flow, minimizing capital investment and optimizing capital allocation. Our current equity valuation does not reflect the strength of our asset base or the long-term durability of our business, and we have reached an inflection point where we expect to generate meaningful levels of Free Cash Flow after distributions. Given the combination of these factors, this is an appropriate time to institute a repurchase program, and we intend to manage the program in a prudent and balanced manner consistent with our priority of continuing to reduce leverage over time,” stated Willie Chiang, Chairman and CEO of Plains All American. “Accordingly, we anticipate funding potential repurchase activity with a portion of our Free Cash Flow after distributions, provided that we are comfortable we remain on track to achieve our targeted long-term leverage ratio. In addition to reducing debt, we believe it is appropriate to allocate a portion of our Free Cash Flow after distributions to invest in our equity.”.

The stocks have a year to date performance of -53.07 percent and weekly performance of 5.37 percent. The stock has been moved at -11.03 percent over the last six months. The stock has performed 34.21 percent around the most recent 30 days and changed 24.17 percent over the most recent 3-months.

If compared to the average trading volume of 6.34M shares, PAA reached to a volume of 7624913 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Plains All American Pipeline L.P. [PAA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PAA shares is $11.26 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PAA stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Plains All American Pipeline L.P. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on September 25, 2020. The new note on the price target was released on July 21, 2020, representing the official price target for Plains All American Pipeline L.P. stock. Previously, the target price had yet another raise to $17, while TD Securities analysts kept a Buy rating on PAA stock.

The Average True Range (ATR) for Plains All American Pipeline L.P. is set at 0.45, with the Price to Sales ratio for PAA stock in the period of the last 12 months amounting to 0.25. The Price to Book ratio for the last quarter was 0.85, with the Price to Cash per share for the same quarter was set at 0.03. Price to Free Cash Flow for PAA in the course of the last twelve months was 5.74 with Quick ratio for the last quarter at 0.70.

PAA stock trade performance evaluation

Plains All American Pipeline L.P. [PAA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.37. With this latest performance, PAA shares gained by 34.21% in over the last four-week period, additionally sinking by -11.03% over the last 6 months – not to mention a drop of -50.43% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PAA stock in for the last two-week period is set at 70.80, with the RSI for the last a single of trading hit 72.11, and the three-weeks RSI is set at 66.23 for Plains All American Pipeline L.P. [PAA]. The present Moving Average for the last 50 days of trading for this stock 6.77, while it was recorded at 8.40 for the last single week of trading, and 8.13 for the last 200 days.

Plains All American Pipeline L.P. [PAA]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Plains All American Pipeline L.P. [PAA] shares currently have an operating margin of +5.05 and a Gross Margin at +5.94. Plains All American Pipeline L.P.’s Net Margin is presently recorded at +6.49.

Return on Total Capital for PAA is now 7.56, given the latest momentum, and Return on Invested Capital for the company is 9.89. Return on Equity for this stock inclined to 17.28, with Return on Assets sitting at 7.99. When it comes to the capital structure of this company, Plains All American Pipeline L.P. [PAA] has a Total Debt to Total Equity ratio set at 77.87. Additionally, PAA Total Debt to Total Capital is recorded at 43.78, with Total Debt to Total Assets ending up at 35.47. Long-Term Debt to Equity for the company is recorded at 88.90, with the Long-Term Debt to Total Capital now at 41.21.

Reflecting on the efficiency of the workforce at the company, Plains All American Pipeline L.P. [PAA] managed to generate an average of $433,000 per employee. Receivables Turnover for the company is 10.99 with a Total Asset Turnover recorded at a value of 1.23.Plains All American Pipeline L.P.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 0.90.

Earnings per share (EPS) analysis for Plains All American Pipeline L.P. [PAA] stock

With the latest financial reports released by the company, Plains All American Pipeline L.P. posted 0.35/share EPS, while the average EPS was predicted by analysts to be reported at 0.49/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -28.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PAA.

Plains All American Pipeline L.P. [PAA]: Insider Ownership positions

There are presently around $3,271 million, or 46.10% of PAA stock, in the hands of institutional investors. The top three institutional holders of PAA stocks are: ALPS ADVISORS INC with ownership of 49,052,981, which is approximately 12.936% of the company’s market cap and around 0.10% of the total institutional ownership; HARVEST FUND ADVISORS LLC, holding 34,478,393 shares of the stock with an approximate value of $297.55 million in PAA stocks shares; and BLACKSTONE GROUP INC, currently with $286.47 million in PAA stock with ownership of nearly -2.506% of the company’s market capitalization.

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Positions in Plains All American Pipeline L.P. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 124 institutional holders increased their position in Plains All American Pipeline L.P. [NYSE:PAA] by around 21,648,651 shares. Additionally, 151 investors decreased positions by around 33,263,683 shares, while 93 investors held positions by with 324,078,157 shares. The mentioned changes placed institutional holdings at 378,990,491 shares, according to the latest SEC report filing. PAA stock had 30 new institutional investments in for a total of 1,517,858 shares, while 27 institutional investors sold positions of 1,219,897 shares during the same period.

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