NGL Energy Partners (NYSE:NGL) Shares Down 4.4% - Time to Sell?

Key Points

• Shares of NGL Energy Partners fell 4.4% to about $12.94 on Monday with volume down ~66% from average, and analysts hold a consensus "Reduce" rating after recent downgrades including Zacks' cut to "strong sell".
• The company missed quarterly EPS expectations ($0.10 vs. $0.16) despite a revenue beat, and shows weak fundamentals — a very high P/E (325.6), negative return on equity, and consensus analyst forecasts of -$0.22 EPS for the year.
• The board authorized a $100 million stock buyback (up to 6.1% of shares), indicating management believes the shares may be undervalued.

Shares of NGL Energy Partners LP (NYSE:NGL - Get Free Report) dropped 4.4% during trading on Monday . The company traded as low as $13.11 and last traded at $12.9440. Approximately 119,052 shares traded hands during trading, a decline of 66% from the average daily volume of 348,844 shares. The stock had previously closed at $13.54.

Analyst Upgrades and Downgrades

NGL has been the subject of a number of research reports. Zacks Research cut shares of NGL Energy Partners from a "hold" rating to a "strong sell" rating in a research note on Thursday, March 12th. Weiss Ratings reissued a "hold (c)" rating on shares of NGL Energy Partners in a research note on Wednesday, January 28th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce".

NGL Energy Partners Price Performance

The firm has a market cap of $1.61 billion, a PE ratio of 325.61 and a beta of 0.39. The business's 50 day moving average price is $12.10 and its 200 day moving average price is $9.93.

NGL Energy Partners (NYSE:NGL - Get Free Report) last announced its quarterly earnings data on Tuesday, February 3rd. The oil and gas company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.06). NGL Energy Partners had a net margin of 5.01% and a negative return on equity of 66.52%. The business had revenue of $909.82 million for the quarter, compared to analysts' expectations of $700.76 million. As a group, analysts predict that NGL Energy Partners LP will post -0.22 earnings per share for the current year.

NGL Energy Partners announced that its Board of Directors has initiated a stock repurchase plan on Thursday, April 9th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the oil and gas company to buy up to 6.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Institutional Trading of NGL Energy Partners

Large investors have recently bought and sold shares of the business. CIBC Bancorp USA Inc. purchased a new stake in NGL Energy Partners during the 3rd quarter valued at about $70,000. CIBC Private Wealth Group LLC purchased a new stake in NGL Energy Partners during the 3rd quarter valued at about $70,000. LPL Financial LLC purchased a new stake in NGL Energy Partners during the 4th quarter valued at about $120,000. Royal Bank of Canada grew its stake in NGL Energy Partners by 71.2% during the 4th quarter. Royal Bank of Canada now owns 14,454 shares of the oil and gas company's stock valued at $145,000 after acquiring an additional 6,009 shares in the last quarter. Finally, State of Wyoming purchased a new stake in NGL Energy Partners during the 4th quarter valued at about $172,000. Hedge funds and other institutional investors own 40.62% of the company's stock.

About NGL Energy Partners

NGL Energy Partners LP is a publicly traded master limited partnership that provides midstream infrastructure and marketing services for the energy industry. The company focuses on the transportation, storage, fractionation and marketing of natural gas liquids (NGLs) and refined petroleum products. Through its integrated operations, NGL Energy Partners serves producers, processors, refiners and industrial customers across key U.S. energy-producing regions.

The partnership's asset base includes pipelines, storage terminals, fractionation plants, and distribution facilities.

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