Plains GP (NYSE:PAGP) Reaches New 1-Year High - Should You Buy?

Key Points

• Plains GP shares reached a new 52-week high of $26.68, above the previous close of $26.27, while the stock trades significantly above its average analyst target of $23.36.
• Analyst sentiment remains mixed: the consensus rating is “Hold”, with one Strong Buy, four Buys, six Holds, and two Sells. Recent price-target increases include Truist’s move to $25 and Wells Fargo’s to $23.
• Plains GP declared a quarterly dividend of $0.4175, equivalent to $1.67 annually and a 6.3% yield; however, its 172.16% payout ratio indicates the dividend exceeds reported earnings.

Shares of Plains GP Holdings, L.P. (NYSE:PAGP - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $26.68 and last traded at $26.5950, with a volume of 207443 shares. The stock had previously closed at $26.27.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on PAGP shares. Zacks Research upgraded Plains GP from a "strong sell" rating to a "hold" rating in a research report on Wednesday, July 22nd. Truist Financial upped their price target on shares of Plains GP from $23.00 to $25.00 and gave the stock a "buy" rating in a report on Wednesday, July 15th. Wells Fargo & Company raised their price target on shares of Plains GP from $22.00 to $23.00 and gave the stock an "equal weight" rating in a research note on Tuesday, May 12th. US Capital Advisors lowered shares of Plains GP from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, May 29th. Finally, Citigroup boosted their price objective on shares of Plains GP from $20.00 to $23.00 and gave the company a "neutral" rating in a research report on Thursday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $23.36.

Plains GP Price Performance

The company has a debt-to-equity ratio of 0.49, a current ratio of 1.01 and a quick ratio of 0.92. The firm has a fifty day moving average of $24.77 and a two-hundred day moving average of $23.35. The stock has a market capitalization of $5.27 billion, a P/E ratio of 50.18 and a beta of 0.45.

Plains GP Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a $0.4175 dividend. The ex-dividend date is Friday, July 31st. This represents a $1.67 annualized dividend and a dividend yield of 6.3%. Plains GP's payout ratio is currently 172.16%.

Hedge Funds Weigh In On Plains GP

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE increased its holdings in Plains GP by 86.3% during the first quarter. Bank of America Corp DE now owns 3,752,707 shares of the pipeline company's stock valued at $91,116,000 after buying an additional 1,738,351 shares during the period. Pathstone Holdings LLC lifted its holdings in Plains GP by 227.5% during the third quarter. Pathstone Holdings LLC now owns 2,055,395 shares of the pipeline company's stock worth $37,490,000 after buying an additional 1,427,743 shares during the period. Qube Research & Technologies Ltd lifted its holdings in Plains GP by 46.1% during the third quarter. Qube Research & Technologies Ltd now owns 1,446,983 shares of the pipeline company's stock worth $26,393,000 after buying an additional 456,426 shares during the period. Engineers Gate Manager LP boosted its position in Plains GP by 510.6% during the 4th quarter. Engineers Gate Manager LP now owns 519,600 shares of the pipeline company's stock valued at $9,945,000 after acquiring an additional 434,499 shares in the last quarter. Finally, Miller Howard Investments Inc. NY boosted its position in Plains GP by 25.8% during the 1st quarter. Miller Howard Investments Inc. NY now owns 1,421,518 shares of the pipeline company's stock valued at $34,514,000 after acquiring an additional 291,397 shares in the last quarter. 88.30% of the stock is currently owned by institutional investors.

About Plains GP

Plains GP Holdings, L.P. NYSE: PAGP serves as the general partner of Plains All American Pipeline, L.P., one of North America's leading energy infrastructure companies. Through its ownership of a 2% general partner interest and incentive distribution rights (IDRs), Plains GP Holdings participates in the governance and cash distribution structure of a diversified portfolio of crude oil and natural gas liquids gathering, transportation, storage, and terminaling assets.

The company's primary business activities include overseeing the strategic direction and capital allocation decisions for its affiliated midstream operations.

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