Enterprise Products Partners (NYSE:EPD) Trading Down 1.4% - Should You Sell?

Key Points

• EPD shares fell 1.4% to about $37.48 on below-average trading volume, while analysts maintained an overall “Hold” consensus with an average price target of $40.12.
• The company reported strong quarterly results, with EPS of $0.84 beating estimates and revenue rising 60.8% year over year to $18.27 billion. Export demand and Permian Basin growth were cited as ongoing support for earnings and cash flow.
• Enterprise Products Partners raised its quarterly dividend to $0.56, representing a 6.0% annualized yield, though rising interest rates remain a risk for income-focused investors.

Enterprise Products Partners L.P. (NYSE:EPD - Get Free Report) shares were down 1.4% on Wednesday . The company traded as low as $37.47 and last traded at $37.4840. 2,817,843 shares traded hands during trading, a decline of 27% from the average daily volume of 3,883,063 shares. The stock had previously closed at $38.01.

Key Headlines Impacting Enterprise Products Partners

Here are the key news stories impacting Enterprise Products Partners this week:

• Positive Sentiment: Seeking Alpha described EPD as still undervalued, citing the partnership’s reliable growth profile. The thesis could support investor interest in the stock’s valuation and income potential. Enterprise Products Partners: Still Undervalued, With Reliable Growth
• Positive Sentiment: RBC said export demand and Permian Basin growth are supporting EPD, while pricing and volumes position the company for another solid quarter. These trends are constructive for earnings and cash flow. Enterprise Products Partners Seen Supported by Export Demand, Permian Growth, RBC Says
• Positive Sentiment: Royal Bank of Canada reaffirmed its “outperform” rating and set a $42 price target, implying approximately 12% upside from the cited share price. RBC Reaffirms Enterprise Products Partners Rating
• Neutral Sentiment: Capital One initiated coverage with an “equal weight” rating and a $42 target, indicating valuation upside but a broadly balanced risk-reward view. Capital One Initiates Enterprise Products Partners at Equalweight
• Neutral Sentiment: Melius Research began coverage with a “hold” rating and a $42 price target, also pointing to potential appreciation but withholding a bullish recommendation. Melius Research Coverage
• Negative Sentiment: Rising interest rates remain a concern for income-focused midstream investors because they can increase financing costs and make yield-oriented investments less attractive, despite the sector’s contractual cash-flow defenses. How Midstream Defends Against Rising Interest Rates

Analyst Upgrades and Downgrades

A number of equities analysts have commented on EPD shares. Royal Bank Of Canada restated an "outperform" rating and issued a $42.00 target price on shares of Enterprise Products Partners in a research note on Tuesday. JPMorgan Chase & Co. boosted their price target on Enterprise Products Partners from $41.00 to $42.00 and gave the company a "neutral" rating in a report on Thursday, July 9th. The Goldman Sachs Group reissued a "neutral" rating and issued a $38.00 price objective on shares of Enterprise Products Partners in a research note on Wednesday, June 17th. Stifel Nicolaus assumed coverage on Enterprise Products Partners in a report on Thursday, September 10th. They set a "hold" rating and a $40.00 price objective on the stock. Finally, TD Cowen reaffirmed a "hold" rating and set a $38.00 target price (down from $39.00) on shares of Enterprise Products Partners in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Enterprise Products Partners has an average rating of "Hold" and an average price target of $40.12.

Enterprise Products Partners Price Performance

The firm has a market capitalization of $80.95 billion, a PE ratio of 13.02, a P/E/G ratio of 1.41 and a beta of 0.50. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.66 and a current ratio of 0.93. The stock has a fifty day moving average price of $38.52 and a 200-day moving average price of $37.98.

Enterprise Products Partners (NYSE:EPD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The oil and gas producer reported $0.84 earnings per share for the quarter, topping analysts' consensus estimates of $0.75 by $0.09. Enterprise Products Partners had a return on equity of 20.67% and a net margin of 10.79%.The firm had revenue of $18.27 billion during the quarter, compared to analysts' expectations of $13.69 billion. During the same period in the prior year, the business posted $0.66 EPS. The firm's quarterly revenue was up 60.8% on a year-over-year basis. Sell-side analysts forecast that Enterprise Products Partners L.P. will post 3.03 EPS for the current fiscal year.

Enterprise Products Partners Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were paid a $0.56 dividend. This represents a $2.24 annualized dividend and a yield of 6.0%. This is a positive change from Enterprise Products Partners's previous quarterly dividend of $0.55. The ex-dividend date was Friday, July 31st. Enterprise Products Partners's payout ratio is 77.78%.

Institutional Investors Weigh In On Enterprise Products Partners

A number of large investors have recently modified their holdings of the business. Security National Bank of Sioux City Iowa IA purchased a new position in shares of Enterprise Products Partners in the second quarter worth about $67,000. Anchor Investment Management LLC raised its holdings in Enterprise Products Partners by 13.5% in the 2nd quarter. Anchor Investment Management LLC now owns 42,150 shares of the oil and gas producer's stock valued at $1,549,000 after acquiring an additional 5,004 shares during the last quarter. Core Capital Management & Research inc. acquired a new stake in Enterprise Products Partners in the 2nd quarter valued at about $4,393,000. Sequoia Financial Advisors LLC lifted its stake in Enterprise Products Partners by 1.9% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 66,928 shares of the oil and gas producer's stock worth $2,460,000 after purchasing an additional 1,228 shares in the last quarter. Finally, Tidal Investments LLC boosted its holdings in shares of Enterprise Products Partners by 95.7% during the 2nd quarter. Tidal Investments LLC now owns 118,324 shares of the oil and gas producer's stock worth $4,350,000 after purchasing an additional 57,860 shares during the last quarter. Hedge funds and other institutional investors own 26.07% of the company's stock.

Enterprise Products Partners Company Profile

Enterprise Products Partners L.P. NYSE: EPD is a publicly traded midstream energy partnership that provides transportation, storage, processing and export services for crude oil, natural gas, natural gas liquids (NGLs), petrochemicals and refined products. The company operates an integrated network of pipelines, processing plants, fractionation facilities, storage assets and marine terminals.

Enterprise's NGL operations include natural gas processing, NGL fractionation and the production and distribution of ethane, propane, butanes and natural gasoline.

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