NGL Energy Partners (NYSE:NGL) Shares Gap Down - Should You Sell?

Key Points

• NGL Energy Partners shares opened sharply lower, falling from a prior close of $16.39 to $15.00 before recovering to about $15.83, with 38,227 shares traded.
• Analyst sentiment is generally positive: Zacks Research upgraded the stock to “strong buy,” while MarketBeat reports an average rating of “Buy” from two covering analysts.
• The company missed quarterly EPS expectations by a wide margin and posted a negative net margin, but its board authorized a $100 million share repurchase plan covering up to 6.1% of outstanding shares.

NGL Energy Partners LP (NYSE:NGL - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $16.39, but opened at $15.00. NGL Energy Partners shares last traded at $15.8320, with a volume of 38,227 shares traded.

Analysts Set New Price Targets

Several brokerages have recently weighed in on NGL. Zacks Research upgraded NGL Energy Partners from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 14th. Weiss Ratings cut NGL Energy Partners from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company. According to MarketBeat, NGL Energy Partners has an average rating of "Buy".

NGL Energy Partners Stock Performance

The company's 50 day simple moving average is $15.90 and its 200-day simple moving average is $13.97. The firm has a market capitalization of $2.01 billion, a PE ratio of -4.89 and a beta of 0.63.

NGL Energy Partners (NYSE:NGL - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The oil and gas company reported ($0.71) EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.89). The firm had revenue of $949.51 million for the quarter, compared to analysts' expectations of $941.52 million. NGL Energy Partners had a negative net margin of 4.51% and a negative return on equity of 47.64%. On average, equities research analysts forecast that NGL Energy Partners LP will post 0.82 earnings per share for the current fiscal year.

NGL Energy Partners announced that its Board of Directors has initiated a share buyback 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 reacquire up to 6.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On NGL Energy Partners

A number of institutional investors have recently made changes to their positions in the stock. Redwood Family Wealth LLC bought a new stake in shares of NGL Energy Partners during the 4th quarter worth $549,000. ING Groep NV increased its stake in NGL Energy Partners by 4.9% in the fourth quarter. ING Groep NV now owns 5,174,803 shares of the oil and gas company's stock valued at $51,748,000 after acquiring an additional 243,000 shares during the last quarter. Royal Bank of Canada raised its position in NGL Energy Partners by 71.2% during 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. Cowa LLC purchased a new stake in NGL Energy Partners during the fourth quarter valued at about $189,000. Finally, Osaic Holdings Inc. lifted its stake in NGL Energy Partners by 186.2% during the fourth quarter. Osaic Holdings Inc. now owns 20,348 shares of the oil and gas company's stock worth $203,000 after purchasing an additional 13,238 shares during the last quarter. Institutional investors own 40.62% of the company's stock.

NGL Energy Partners Company Profile

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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