Enterprise Products Partners (NYSE:EPD) Trading 1.5% Higher - Should You Buy?

Key Points

• Shares rose 1.5% midday to $38.13 on Monday despite below-average volume, and Wall Street activity has tilted positive with several firms (including Barclays and Citigroup) raising targets to $39, though the MarketBeat consensus rating remains "Hold" with a $37.14 target.
• Enterprise beat Q4 estimates with EPS of $0.75 vs. $0.69 expected and revenue of $13.79B (vs. $12.44B est.), and it pays a substantial dividend of $0.55 quarterly (annualized $2.20) for a 5.8% yield
• Insider and ownership highlights: a director purchased 15,000 shares in December, insiders hold about 32.6% of the stock while institutional investors hold ~26.1%, and the company has a market cap of ~$82.4B with a P/E of ~14.3.

Enterprise Products Partners L.P. (NYSE:EPD - Get Free Report)'s stock price shot up 1.5% during mid-day trading on Monday . The stock traded as high as $38.15 and last traded at $38.1320. 3,196,519 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 4,642,530 shares. The stock had previously closed at $37.56.

Wall Street Analyst Weigh In

A number of research firms recently commented on EPD. Barclays lifted their price objective on Enterprise Products Partners from $38.00 to $39.00 and gave the stock an "overweight" rating in a research report on Thursday, March 5th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Enterprise Products Partners in a research note on Thursday, January 22nd. UBS Group reiterated a "buy" rating on shares of Enterprise Products Partners in a report on Wednesday, March 4th. Wall Street Zen raised shares of Enterprise Products Partners from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Citigroup restated a "buy" rating and set a $39.00 target price (up from $36.00) on shares of Enterprise Products Partners in a research report on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Enterprise Products Partners presently has an average rating of "Hold" and a consensus target price of $37.14.

Enterprise Products Partners Trading Up 1.5%

The company has a current ratio of 1.04, a quick ratio of 0.74 and a debt-to-equity ratio of 1.07. The stock has a market capitalization of $82.43 billion, a price-to-earnings ratio of 14.34, a price-to-earnings-growth ratio of 1.50 and a beta of 0.58. The business has a 50 day simple moving average of $35.33 and a 200-day simple moving average of $32.96.

Enterprise Products Partners (NYSE:EPD - Get Free Report) last announced its quarterly earnings data on Monday, February 2nd. The oil and gas producer reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.69 by $0.06. Enterprise Products Partners had a net margin of 11.05% and a return on equity of 19.33%. The business had revenue of $13.79 billion for the quarter, compared to analyst estimates of $12.44 billion. During the same period in the prior year, the firm posted $0.74 EPS. The company's revenue was down 2.9% on a year-over-year basis. On average, equities analysts predict that Enterprise Products Partners L.P. will post 2.9 earnings per share for the current year.

Enterprise Products Partners Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were issued a $0.55 dividend. This is a boost from Enterprise Products Partners's previous quarterly dividend of $0.55. The ex-dividend date was Friday, January 30th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 5.8%. Enterprise Products Partners's dividend payout ratio (DPR) is 82.71%.

Insider Activity

In other news, Director John R. Rutherford bought 15,000 shares of Enterprise Products Partners stock in a transaction that occurred on Monday, December 29th. The shares were purchased at an average price of $32.09 per share, for a total transaction of $481,350.00. Following the completion of the acquisition, the director owned 173,586 shares of the company's stock, valued at $5,570,374.74. The trade was a 9.46% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 32.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Enterprise Products Partners

Hedge funds and other institutional investors have recently modified their holdings of the company. PMV Capital Advisers LLC acquired a new stake in Enterprise Products Partners during the 4th quarter worth approximately $25,000. Palisade Asset Management LLC purchased a new stake in Enterprise Products Partners during the third quarter worth approximately $31,000. Abich Financial Wealth Management LLC acquired a new stake in shares of Enterprise Products Partners in the third quarter worth $32,000. Texas Capital Bancshares Inc TX acquired a new stake in shares of Enterprise Products Partners in the third quarter worth $32,000. Finally, Financial Consulate Inc. purchased a new position in shares of Enterprise Products Partners in the 3rd quarter valued at $33,000. 26.07% of the stock is owned by institutional investors and hedge funds.

Enterprise Products Partners Company Profile

Enterprise Products Partners L.P. NYSE: EPD is a Houston-based master limited partnership that provides midstream energy services across North America. The company owns and operates an extensive network of pipelines, storage facilities, processing plants and export terminals that transport and handle natural gas, natural gas liquids (NGLs), crude oil and refined and petrochemical products. Its core activities include gathering and transportation, fractionation of NGLs, natural gas processing, crude oil and condensate pipelines, and marine and terminal services that enable domestic distribution and exports.

Enterprise serves a diverse set of customers including producers, refiners, petrochemical companies, marketers and end users.

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