Enterprise Products Partners L.P. (EPD) Stock Could Catch Fire Soon

On November 29, 2019, Enterprise Products Partners L.P. (NYSE:EPD) shares lost -1.64% or -0.44 points to close at $26.32 with a thin trading volume of 1.652 million shares. It opened the trading session at $26.65, the shares rose to $26.69 and dropped to $26.28, the range by which the price of stock traded the whole day. The company now has a market cap of $56.8 billion and currently has 2.16 billion outstanding shares. Enterprise Products Partners L.P. (EPD) stock has plunged -0.19 percent of market value in 21 trading days.

EPD stock’s trailing 3-year beta is 0.84, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.16 share in the trailing 52 weeks. The stock’s value surged 7.04 percent year to date (YTD) compared to a rise of 0.92 percent in 52 week’s period. The firm’s shares are still trading -14.73 percent below its 1-year high of $30.86 and 12.82 percent up from 52-week low of $23.33. The average consensus ranking on the company is 1.5, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Enterprise Products Partners L.P. (EPD) is most likely going to rise 32.52 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $41-month high price target. This represents a whopping 55.78 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $35, which means a return possibility of 32.98 percent in comparison with the closing price of the stock of $26.32 on November 29. The lowest price set for the stock is $31 — just above 17.78 percent from EPD share price now.

Past records have indicated that shares in Enterprise Products Partners L.P. rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of EPD’s Q4 earnings on January 31. Analysts are predicting revenue to suffer decline of -6.2 percent to $8.62B in the financial fourth quarter, while EPS will soar by about -8.47 percent to $0.54 per share. In the last quarter, it earnings of $0.52 per share came better than the $0.51965, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $7.96B, missing the $8.86B analysts had expected. Earnings are seen to rise by 46.9 percent this year, 3.99 percent in the coming year and the trend continues by 7.59 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Enterprise Products Partners L.P. (NYSE:EPD) and observe the pattern. The earliest insider trade happened on 08/02/2019. Brasseux Murray E gathered a total of 5 thousand shares of the firm at average share price of $30. The total amount for the purchase was set at $150 thousand. On completing this exchange, the Director account balance was 20.77 thousand shares. The stock lost -12.27 percent from that insider purchase. On 12/31/2018, TEAGUE AJ, CEO, did a purchase of 10 thousand shares at a price of $24.36 per share. This increased 243.6 thousand shares to the insider’s fortune and the stock experienced a 8.05 percent rally in price since the news became public. This exchange saw 1.75 million shares get into the CEO account.

On 12/20/2018, CEO TEAGUE AJ recorded a purchase transaction valued at $246.1 thousand. The purchase at $24.61 a share has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 6.95 percent increase since the transaction reporting date. The company insider is left with 1.74 million shares remaining in the account. BARTH CARIN MARCY, who works as Director at the company, performed a purchase of 10 thousand shares in a transaction worth $250 thousand. The acquisition recorded on 12/19/2018 was priced at $25 per share. The stock price soared 5.28 percent since the transaction. BARTH CARIN MARCY currently holds a stake of 41.34 thousand in EPD stock which is worth $1.09 million after the insider buying.

The stock is lingering around the initial support level of $26.17. After this, the following support is at the zone of $26.02. Up until the time the EPD stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 46.53 on the daily chart, and this may be a cause for concern. In case the price goes below $26.02 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $26.58 level may cause a pull-back move approaching $26.84 mark.

Enterprise Products Partners L.P. (EPD) shares are trading at a P/E ratio of 12.1 times earnings posted in the trailing 12 months. The industry EPD deals with has an average P/E of 18.6. Its P/B ratio is standing at 2.4X compared to the 2 industry average. It is additionally sporting a 1.7 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.5. Enterprise Products Partners L.P. has a 26.5% gross profit margin, with its operating margin around 18.6%. Alongside this, the company’s net profit margin currently stands at 14%.