Intact Investment Management Inc. Raises Holdings in Pembina Pipeline Corp. $PBA

Key Points

• Intact Investment Management Inc. increased its Pembina Pipeline stake by 4.9% in Q4 to 2,170,014 shares (about $82.7M), making PBA its 10th-largest holding; overall institutional ownership in the stock is roughly 55.4%.
• Analysts have an average "Hold" rating on Pembina with an average price target of $60.00, while the stock trades near $46.47, signaling notable gap between current price and consensus target.
• Pembina pays a quarterly dividend of $0.71 (annualized $2.84) for a yield of 6.1%, but the dividend payout ratio is high at 109.47%, which could raise sustainability concerns.

Intact Investment Management Inc. grew its stake in Pembina Pipeline Corp. (NYSE:PBA - Free Report) TSE: PPL by 4.9% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,170,014 shares of the pipeline company's stock after acquiring an additional 101,390 shares during the period. Pembina Pipeline accounts for 2.4% of Intact Investment Management Inc.'s holdings, making the stock its 10th biggest holding. Intact Investment Management Inc. owned about 0.37% of Pembina Pipeline worth $82,668,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also added to or reduced their stakes in PBA. AQR Capital Management LLC bought a new position in Pembina Pipeline in the 1st quarter worth about $374,000. Focus Partners Wealth bought a new position in Pembina Pipeline in the 1st quarter worth about $312,000. Marshall Wace LLP bought a new position in Pembina Pipeline in the 2nd quarter worth about $253,000. Cresset Asset Management LLC grew its stake in Pembina Pipeline by 4.1% in the 2nd quarter. Cresset Asset Management LLC now owns 13,684 shares of the pipeline company's stock worth $513,000 after acquiring an additional 534 shares in the last quarter. Finally, AXA S.A. grew its stake in Pembina Pipeline by 17.5% in the 2nd quarter. AXA S.A. now owns 23,418 shares of the pipeline company's stock worth $878,000 after acquiring an additional 3,488 shares in the last quarter. 55.37% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. BMO Capital Markets restated a "market perform" rating on shares of Pembina Pipeline in a research note on Wednesday, April 8th. Weiss Ratings upgraded shares of Pembina Pipeline from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 2nd. Zacks Research upgraded shares of Pembina Pipeline from a "strong sell" rating to a "hold" rating in a research note on Friday, January 23rd. JPMorgan Chase & Co. upped their target price on shares of Pembina Pipeline from $55.00 to $60.00 and gave the stock a "neutral" rating in a research note on Thursday, March 19th. Finally, TD Securities restated a "hold" rating on shares of Pembina Pipeline in a research note on Wednesday, April 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $60.00.

Pembina Pipeline Price Performance

Shares of PBA opened at $46.47 on Monday. The company has a 50 day moving average price of $44.30 and a 200-day moving average price of $40.91. Pembina Pipeline Corp. has a fifty-two week low of $35.45 and a fifty-two week high of $46.70. The stock has a market capitalization of $27.02 billion, a PE ratio of 24.46 and a beta of 0.58. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.47 and a current ratio of 0.61.

Pembina Pipeline (NYSE:PBA - Get Free Report) TSE: PPL last announced its quarterly earnings results on Thursday, February 26th. The pipeline company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.06. Pembina Pipeline had a net margin of 21.76% and a return on equity of 11.17%. The firm had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $1.41 billion. During the same quarter in the prior year, the company earned $0.92 EPS. The company's revenue was down 10.8% compared to the same quarter last year. Equities analysts predict that Pembina Pipeline Corp. will post 2.18 earnings per share for the current fiscal year.

Pembina Pipeline Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were given a $0.71 dividend. This represents a $2.84 annualized dividend and a dividend yield of 6.1%. The ex-dividend date of this dividend was Monday, March 16th. Pembina Pipeline's dividend payout ratio is presently 109.47%.

Pembina Pipeline Company Profile

Pembina Pipeline Corporation NYSE: PBA is a North American energy infrastructure company that develops, owns and operates midstream assets that transport, store and process hydrocarbons. Its core business focuses on the transportation of crude oil, natural gas liquids (NGLs) and condensate, along with gas processing, fractionation, storage and related marketing services. Pembina serves producers, refiners and other energy companies by providing pipeline capacity, terminal services and midstream solutions that link upstream production to downstream markets and export facilities.

The company's asset base is concentrated in Western Canada, including major operations in Alberta and British Columbia, and it also has operations and commercial activities that extend into the United States.

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