NGL Energy Partners (NYSE:NGL) Sees Strong Trading Volume - Should You Buy?

Key Points

• NGL shares experienced unusually heavy trading volume, with about 481,940 shares changing hands—71% above the prior session—while trading near $14.97.
• Analyst sentiment is largely negative: Wall Street Zen upgraded the stock to “buy,” but Weiss Ratings downgraded it to “sell” and Zacks Research to “hold.” The overall consensus rating is “Reduce.”
• NGL beat quarterly earnings expectations, reporting $0.48 per share versus the $0.11 estimate and $989.99 million in revenue, although it continued to post negative net margin and return on equity. Insider activity was mixed, with a director buying shares while the CEO sold 300,000 shares.

NGL Energy Partners LP (NYSE:NGL - Get Free Report) shares saw unusually-strong trading volume on Friday. Approximately 481,940 shares traded hands during mid-day trading, an increase of 71% from the previous session's volume of 281,403 shares. The stock last traded at $14.9710 and had previously closed at $14.81.

Analysts Set New Price Targets

Several brokerages have weighed in on NGL. Wall Street Zen raised NGL Energy Partners from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings lowered NGL Energy Partners from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, September 29th. Finally, Zacks Research cut NGL Energy Partners from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce".

NGL Energy Partners Price Performance

The firm has a market capitalization of $1.89 billion, a price-to-earnings ratio of -5.34 and a beta of 0.84. The firm's 50-day simple moving average is $16.63 and its 200 day simple moving average is $15.90.

NGL Energy Partners (NYSE:NGL - Get Free Report) last issued its earnings results on Tuesday, August 4th. The oil and gas company reported $0.48 earnings per share for the quarter, beating analysts' consensus estimates of $0.11 by $0.37. NGL Energy Partners had a negative return on equity of 39.51% and a negative net margin of 3.76%. The firm had revenue of $989.99 million for the quarter, compared to the consensus estimate of $346.13 million. As a group, research analysts predict that NGL Energy Partners LP will post 1.38 earnings per share for the current year.

Insider Buying and Selling

In related news, Director James M. Collingsworth purchased 2,289 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were bought at an average cost of $17.00 per share, with a total value of $38,913.00. Following the acquisition, the director owned 766,797 shares of the company's stock, valued at $13,035,549. This trade represents a 0.30% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO H. Krimbill sold 300,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $17.00, for a total transaction of $5,100,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,378,615 shares of the company's stock, valued at approximately $57,436,455. The trade was a 8.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders acquired a total of 339,923 shares of company stock worth $5,750,003 in the last ninety days. 7.30% of the stock is owned by insiders.

Institutional Trading of NGL Energy Partners

A number of hedge funds and other institutional investors have recently modified their holdings of NGL. Corient Private Wealth LP acquired a new stake in shares of NGL Energy Partners during the 2nd quarter valued at $159,000. Quartz Partners LLC grew its holdings in shares of NGL Energy Partners by 6.8% during the first quarter. Quartz Partners LLC now owns 16,504 shares of the oil and gas company's stock worth $203,000 after purchasing an additional 1,052 shares during the last quarter. Arkadios Wealth Advisors bought a new position in NGL Energy Partners in the 1st quarter valued at approximately $228,000. Fort Washington Investment Advisors Inc. OH bought a new position in NGL Energy Partners in the 1st quarter valued at approximately $385,000. Finally, Segall Bryant & Hamill LLC acquired a new stake in NGL Energy Partners during the 1st quarter worth approximately $397,000. 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 energy services in the United States. The company's operations support producers, refiners, marketers and other participants in the energy industry through the transportation, handling, storage and disposal of crude oil, produced water and other energy-related liquids.

NGL's Water Solutions business gathers, transports, treats, recycles and disposes of produced water generated during oil and natural gas production.

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