NGL Energy Partners (NYSE:NGL) Shares Down 5.6% - What's Next?

Key Points

• Shares of NGL Energy Partners fell 5.6% on Friday to about $15.29 (intraday low $15.38), with trading volume roughly 72% below the average daily volume.
• The Board authorized a $100 million stock buyback (up to ~6.1% of outstanding shares), while sell-side coverage has shifted toward a consensus Hold rating after a Zacks upgrade from "strong sell."
• In the latest quarter NGL missed EPS ($0.10 vs. $0.16 estimate) despite a revenue beat ($909.8M vs. $700.8M); the company shows a very high trailing P/E (~376.5) and a negative ROE (~-66.5%).

Shares of NGL Energy Partners LP (NYSE:NGL - Get Free Report) dropped 5.6% on Friday . The company traded as low as $15.38 and last traded at $15.2850. Approximately 91,198 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 325,308 shares. The stock had previously closed at $16.20.

Analyst Upgrades and Downgrades

NGL has been the subject of a number of research analyst reports. Zacks Research upgraded NGL Energy Partners from a "strong sell" rating to a "hold" rating in a report on Friday, April 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of NGL Energy Partners in a report on Monday. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold".

NGL Energy Partners Stock Down 7.0%

The business has a 50-day moving average price of $12.73 and a two-hundred day moving average price of $10.66. The company has a market capitalization of $1.86 billion, a price-to-earnings ratio of 376.54 and a beta of 0.39.

NGL Energy Partners (NYSE:NGL - Get Free Report) last posted its quarterly earnings results 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 during the quarter, compared to analyst estimates of $700.76 million. On average, sell-side analysts anticipate that NGL Energy Partners LP will post 0.03 EPS for the current fiscal year.

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

Institutional Trading of NGL Energy Partners

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CIBC Bancorp USA Inc. bought a new position in shares of NGL Energy Partners in the third quarter valued at approximately $70,000. CIBC Private Wealth Group LLC bought a new position in shares of NGL Energy Partners in the third quarter valued at approximately $70,000. LPL Financial LLC bought a new position in shares of NGL Energy Partners in the fourth quarter valued at approximately $120,000. Royal Bank of Canada lifted its holdings in shares of NGL Energy Partners by 71.2% in the fourth quarter. Royal Bank of Canada now owns 14,454 shares of the oil and gas company's stock valued at $145,000 after purchasing an additional 6,009 shares in the last quarter. Finally, State of Wyoming bought a new position in shares of NGL Energy Partners in the fourth quarter valued at approximately $172,000. 40.62% of the stock is owned by institutional investors.

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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