Plains GP Target of Unusually Large Options Trading (NYSE:PAGP)

Key Points

• Plains GP saw unusually heavy options activity on Thursday, with investors purchasing 114,858 call options—about 1,573% above the average volume of 6,865 calls.
• PAGP shares slipped 0.3% to $26.58, near their 52-week high of $26.77. The company announced a quarterly dividend of $0.4175 per share, representing a 6.3% annualized yield.
• Analyst sentiment remains mixed but centers on a “Hold” consensus, with a $23.36 average price target. Institutional investors own approximately 88.3% of the stock.

Plains GP Holdings, L.P. (NYSE:PAGP - Get Free Report) saw unusually large options trading on Thursday. Investors purchased 114,858 call options on the stock. This is an increase of approximately 1,573% compared to the average volume of 6,865 call options.

Plains GP Stock Down 0.3%

PAGP stock traded down $0.08 during trading on Thursday, hitting $26.58. 3,079,025 shares of the company's stock traded hands, compared to its average volume of 1,798,929. The firm has a market capitalization of $5.26 billion, a P/E ratio of 50.15 and a beta of 0.45. The business has a fifty day simple moving average of $24.80 and a two-hundred day simple moving average of $23.40. The company has a quick ratio of 0.92, a current ratio of 1.01 and a debt-to-equity ratio of 0.49. Plains GP has a 1 year low of $16.68 and a 1 year high of $26.77.

Plains GP Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 31st will be given a dividend of $0.4175 per share. This represents a $1.67 annualized dividend and a yield of 6.3%. The ex-dividend date of this dividend is Friday, July 31st. Plains GP's dividend payout ratio (DPR) is 172.16%.

Analyst Ratings Changes

A number of brokerages have weighed in on PAGP. Zacks Research raised Plains GP from a "strong sell" rating to a "hold" rating in a research report on Wednesday, July 22nd. Citigroup increased their price target on Plains GP from $20.00 to $23.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. US Capital Advisors lowered Plains GP from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, May 29th. The Goldman Sachs Group upgraded Plains GP from a "sell" rating to a "neutral" rating and lifted their price objective for the company from $18.00 to $24.00 in a report on Wednesday, June 3rd. Finally, Wells Fargo & Company upped their price objective 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. One 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 assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $23.36.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in PAGP. Larson Financial Group LLC bought a new stake in Plains GP during the third quarter valued at about $46,000. North Star Investment Management Corp. bought a new position in Plains GP in the first quarter worth about $56,000. Lazard Asset Management LLC lifted its position in shares of Plains GP by 36.5% during the second quarter. Lazard Asset Management LLC now owns 3,030 shares of the pipeline company's stock valued at $58,000 after buying an additional 811 shares during the last quarter. O Domhnaill Enterprises Inc. bought a new stake in shares of Plains GP in the 1st quarter valued at about $66,000. Finally, Virtus Advisers LLC grew its position in shares of Plains GP by 46.5% in the 4th quarter. Virtus Advisers LLC now owns 5,859 shares of the pipeline company's stock worth $112,000 after buying an additional 1,859 shares during the last quarter. 88.30% of the stock is owned by institutional investors.

Plains GP Company Profile

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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