Stock Traders Purchase Large Volume of Plains GP Call Options (PAGP)

Plains GP Holdings LP (NYSE:PAGP) was the recipient of some unusual options trading activity on Monday. Stock investors purchased 1,004 call options on the stock. This represents an increase of 1,041% compared to the typical daily volume of 88 call options.

Shares of Plains GP stock opened at $23.19 on Tuesday. Plains GP has a one year low of $18.98 and a one year high of $27.00. The stock has a market cap of $3.72 billion, a PE ratio of 35.68 and a beta of 1.26. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.75 and a quick ratio of 0.63.

Plains GP (NYSE:PAGP) last announced its quarterly earnings data on Tuesday, August 7th. The pipeline company reported $0.05 EPS for the quarter, missing the Zacks’ consensus estimate of $0.22 by ($0.17). Plains GP had a positive return on equity of 0.57% and a negative net margin of 2.51%. The company had revenue of $8.08 billion for the quarter, compared to analyst estimates of $7.71 billion. On average, sell-side analysts predict that Plains GP will post 1.1 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 14th. Stockholders of record on Wednesday, October 31st will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 5.17%. The ex-dividend date of this dividend is Tuesday, October 30th. Plains GP’s dividend payout ratio is presently 184.62%.

In related news, Director John T. Raymond acquired 25,000 shares of Plains GP stock in a transaction that occurred on Tuesday, September 25th. The shares were purchased at an average cost of $23.40 per share, for a total transaction of $585,000.00. Following the acquisition, the director now owns 245,531 shares in the company, valued at $5,745,425.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 16.80% of the stock is currently owned by insiders.

Several institutional investors have recently made changes to their positions in the company. Tortoise Capital Advisors L.L.C. grew its position in shares of Plains GP by 6.4% during the second quarter. Tortoise Capital Advisors L.L.C. now owns 9,273,785 shares of the pipeline company’s stock worth $221,736,000 after buying an additional 559,191 shares in the last quarter. Chickasaw Capital Management LLC grew its position in shares of Plains GP by 4.6% during the third quarter. Chickasaw Capital Management LLC now owns 7,522,308 shares of the pipeline company’s stock worth $184,522,000 after buying an additional 330,003 shares in the last quarter. Kayne Anderson Capital Advisors LP grew its position in shares of Plains GP by 17.4% during the second quarter. Kayne Anderson Capital Advisors LP now owns 6,898,055 shares of the pipeline company’s stock worth $164,919,000 after buying an additional 1,020,371 shares in the last quarter. Canyon Capital Advisors LLC boosted its holdings in Plains GP by 0.3% in the second quarter. Canyon Capital Advisors LLC now owns 3,128,337 shares of the pipeline company’s stock valued at $74,799,000 after purchasing an additional 8,860 shares in the last quarter. Finally, BlackRock Inc. boosted its holdings in Plains GP by 22.3% in the first quarter. BlackRock Inc. now owns 1,886,331 shares of the pipeline company’s stock valued at $41,029,000 after purchasing an additional 344,119 shares in the last quarter. 89.97% of the stock is owned by institutional investors and hedge funds.

A number of analysts have issued reports on the stock. Zacks Investment Research upgraded shares of Plains GP from a “hold” rating to a “buy” rating and set a $27.00 price target on the stock in a research note on Wednesday, September 19th. SunTrust Banks set a $29.00 price target on shares of Plains GP and gave the stock a “buy” rating in a research note on Wednesday, August 8th. Bank of America upgraded shares of Plains GP from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $26.00 to $30.00 in a research note on Tuesday, September 11th. BMO Capital Markets reiterated a “buy” rating and set a $27.00 price target on shares of Plains GP in a research note on Friday, July 13th. Finally, US Capital Advisors upgraded shares of Plains GP from a “hold” rating to an “overweight” rating and set a $30.00 price target on the stock in a research note on Friday, August 24th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and ten have given a buy rating to the company. Plains GP presently has a consensus rating of “Hold” and an average price target of $28.64.

Plains GP Company Profile

Plains GP Holdings, L.P. owns and operates midstream energy infrastructure in the United States and Canada. It operates through three segments: Transportation, Facilities, and Supply and Logistics. The Transportation segment engages in the transportation of crude oil and natural gas liquids (NGLs) on pipelines, gathering systems, trucks, and barges.

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