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

Plains GP Holdings LP (NYSE:PAGP) was the recipient of some unusual options trading on Thursday. Investors acquired 1,151 call options on the stock. This represents an increase of approximately 956% compared to the average daily volume of 109 call options.

PAGP has been the subject of a number of recent analyst reports. Evercore ISI initiated coverage on Plains GP in a report on Tuesday, February 5th. They set a $24.00 target price for the company. TheStreet upgraded Plains GP from a “c” rating to a “b-” rating in a report on Friday, April 5th. Zacks Investment Research upgraded Plains GP from a “hold” rating to a “buy” rating and set a $26.00 price objective for the company in a report on Thursday, February 7th. Goldman Sachs Group raised Plains GP from a “neutral” rating to a “buy” rating in a research note on Wednesday, January 2nd. Finally, ValuEngine raised Plains GP from a “sell” rating to a “hold” rating in a research report on Monday, February 4th. One analyst has rated the stock with a sell rating, three have given a hold rating and thirteen have issued a buy rating to the company. Plains GP presently has an average rating of “Buy” and an average target price of $28.57.

PAGP traded down $0.27 on Friday, hitting $24.15. 905,718 shares of the company’s stock traded hands, compared to its average volume of 1,086,451. The company has a market capitalization of $3.85 billion, a PE ratio of 11.45 and a beta of 1.23. Plains GP has a one year low of $19.17 and a one year high of $27.00. The company has a current ratio of 1.02, a quick ratio of 0.84 and a debt-to-equity ratio of 0.69.

Plains GP (NYSE:PAGP) last issued its earnings results on Tuesday, February 5th. The pipeline company reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.61. The company had revenue of $8.79 billion for the quarter, compared to the consensus estimate of $10.52 billion. Plains GP had a return on equity of 2.64% and a net margin of 0.98%. The firm’s quarterly revenue was up 15.5% on a year-over-year basis. During the same quarter last year, the company earned ($5.16) EPS. Equities research analysts predict that Plains GP will post 1.52 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Shareholders of record on Wednesday, May 1st will be issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 5.96%. The ex-dividend date of this dividend is Tuesday, April 30th. This is a boost from Plains GP’s previous quarterly dividend of $0.30. Plains GP’s dividend payout ratio (DPR) is currently 56.87%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Sound Income Strategies LLC purchased a new position in shares of Plains GP in the 4th quarter worth approximately $37,000. Captrust Financial Advisors purchased a new position in Plains GP during the 4th quarter valued at $53,000. Daiwa Securities Group Inc. boosted its holdings in Plains GP by 550.0% during the 4th quarter. Daiwa Securities Group Inc. now owns 5,200 shares of the pipeline company’s stock valued at $105,000 after acquiring an additional 4,400 shares during the period. Hodges Capital Management Inc. purchased a new position in Plains GP during the 1st quarter valued at $220,000. Finally, Linscomb & Williams Inc. boosted its holdings in Plains GP by 15.2% during the 4th quarter. Linscomb & Williams Inc. now owns 11,301 shares of the pipeline company’s stock valued at $227,000 after acquiring an additional 1,490 shares during the period. Institutional investors and hedge funds own 85.46% of the company’s stock.

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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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