Pembina Pipeline (NYSE:PBA) Stock Rating Lowered by Wells Fargo & Company

Key Points

• Pembina Pipeline has been downgraded by Wells Fargo & Company from a "hold" rating to a "strong sell" rating, reflecting concerns over its stock performance.
• Analysts have shown a mixed outlook for Pembina Pipeline, with ratings ranging from sell to strong buy, but the current average rating is classified as a "Moderate Buy."
• The company's recent quarterly earnings exceeded expectations with $0.80 EPS, although revenue of $1.14 billion fell short of estimates, highlighting potential challenges ahead.

Pembina Pipeline (NYSE:PBA - Get Free Report) TSE: PPL was downgraded by investment analysts at Wells Fargo & Company from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Other equities analysts have also issued research reports about the company. Barclays reaffirmed an "overweight" rating on shares of Pembina Pipeline in a research note on Tuesday, June 3rd. Jefferies Financial Group lowered Pembina Pipeline from a "buy" rating to a "hold" rating in a research note on Wednesday, July 23rd. National Bank Financial raised Pembina Pipeline from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 25th. Finally, National Bankshares upgraded Pembina Pipeline from a "sector perform" rating to an "outperform" rating in a report on Thursday, June 26th. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, Pembina Pipeline presently has an average rating of "Moderate Buy" and a consensus target price of $56.00.

Pembina Pipeline Price Performance

Pembina Pipeline stock traded down $1.35 on Wednesday, reaching $35.54. The company's stock had a trading volume of 1,792,792 shares, compared to its average volume of 930,350. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.52 and a current ratio of 0.64. The company has a market cap of $20.65 billion, a price-to-earnings ratio of 16.69 and a beta of 0.78. The business's fifty day moving average price is $37.20 and its 200 day moving average price is $37.53. Pembina Pipeline has a twelve month low of $34.13 and a twelve month high of $43.44.

Pembina Pipeline (NYSE:PBA - Get Free Report) TSE: PPL last posted its quarterly earnings data on Thursday, May 8th. The pipeline company reported $0.80 EPS for the quarter, topping analysts' consensus estimates of $0.57 by $0.23. The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.47 billion. Pembina Pipeline had a return on equity of 12.26% and a net margin of 23.24%. The business's revenue was up 48.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.73 earnings per share. Equities analysts expect that Pembina Pipeline will post 2.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Pembina Pipeline

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. increased its holdings in shares of Pembina Pipeline by 78.1% in the first quarter. Goldman Sachs Group Inc. now owns 7,088,945 shares of the pipeline company's stock worth $283,770,000 after acquiring an additional 3,108,920 shares in the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its holdings in shares of Pembina Pipeline by 1,591.4% in the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 3,155,558 shares of the pipeline company's stock worth $116,440,000 after acquiring an additional 2,968,994 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Pembina Pipeline by 136.7% in the first quarter. The Manufacturers Life Insurance Company now owns 3,995,460 shares of the pipeline company's stock worth $160,681,000 after acquiring an additional 2,307,634 shares in the last quarter. Nuveen LLC bought a new position in shares of Pembina Pipeline during the first quarter worth about $83,743,000. Finally, MUFG Securities EMEA plc bought a new position in shares of Pembina Pipeline during the second quarter worth about $52,514,000. Institutional investors own 55.37% of the company's stock.

Pembina Pipeline Company Profile

Pembina Pipeline Corporation provides energy transportation and midstream services. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 2.9 millions of barrels of oil equivalent per day, the ground storage capacity of 10 millions of barrels, and rail terminalling capacity of approximately 105 thousands of barrels of oil equivalent per day serving markets and basins across North America.