Is Plains GP Holdings, L.P. (NYSE:PAGP) Stock Starting to Get Spooky?

In the recent trading session, Plains GP Holdings, L.P. (NYSE:PAGP) shares lost -0.21% or -0.04 points to close at $19.13 with a thin trading volume of 1.02 million shares. It opened the trading session at $19.17, the shares rose to $19.26 and dropped to $19.01, the range by which the price of stock traded the whole session. The company now has a market cap of $4.83 billion and currently has 252 million outstanding shares. Plains GP Holdings, L.P. (PAGP) stock has accumulated 6.38 percent of market value in 21 trading days.

PAGP stock’s trailing 3-year beta is 1.21, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.85 share in the trailing 52 weeks. The stock’s value surged 1.16 percent year to date (YTD) compared to a decline of -18.91 percent in 52 week’s period. The firm’s shares are still trading -25.91 percent below its 1-year high of $25.82 and 12.6 percent up from 52-week low of $16.99. The average consensus ranking on the company is 1.8, 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.

Plains GP Holdings, L.P. (PAGP) is most likely going to rise 24.67 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $27 as 12-month high price target. This represents a whopping 41.14 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $25, which means a return possibility of 30.68 percent in comparison with the closing price of the stock of $19.13 in recent trading session. The lowest price set for the stock is $18 which is just above -5.91 percent from PAGP share’s price at the end of session.

Past records have indicated that shares in Plains GP Holdings, L.P. declined on 13 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 PAGP’s Q4 earnings on February 04. Analysts are predicting revenue to suffer decline of -4.8 percent to $8.37B in the financial fourth quarter, while EPS will soar by about -59.42 percent to $0.56 per share. In the last quarter, it’s earnings of $0.41 per share came better than the $0.09138, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $8.79B, missing the $10.52B analysts had expected. Earnings are seen to rise by 232.6 percent this year, -11.62 percent in the coming year and the trend continues by -10.1 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Plains GP Holdings, L.P. (NYSE:PAGP) and observe the pattern. The earliest insider trade happened on 11/20/2019. Chiang Willie CW gathered a total of 60 thousand shares of the firm at average share price of $17.14. The total amount for the purchase was set at $1.03 million. On completing this exchange, the CEO account balance was 135.1 thousand shares. The stock grew 11.73 percent from that insider purchase. On 11/20/2019, ARMSTRONG GREG L, Director, did a purchase of 60 thousand shares at a price of $17.14 per share. This increased 1.03 million shares to the insider’s fortune and the stock experienced a 11.73 percent rally in price since the news became public. This exchange saw 1.56 million shares get into the Director account.

On 11/18/2019, Director GOYANES EVERARDO recorded a purchase transaction valued at $358.2 thousand. The purchase at $17.91 a share has added 20 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 6.92 percent increase since the transaction reporting date. The company insider is left with 57.31 thousand shares remaining in the account. Oxy Holding Co (Pipeline), Inc, who works as at the company, performed a sale of 15 million shares in a transaction worth $327.6 million. The disposal recorded on 09/23/2019 was priced at $21.84 per share. The stock price plunged -12.32 percent since the transaction. Oxy Holding Co (Pipeline), Inc currently holds a stake of 0 thousand in PAGP stock which is worth $0 thousand after the insider selling.

The stock is lingering around the initial support level of $19.06. After this, the following support is at the zone of $18.96. Up until the time the PAGP stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 55.73 on the daily chart, and this may be a cause for concern. In case the price goes below $18.96 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $19.28 level may cause a pull-back move approaching $19.4 mark.

Plains GP Holdings, L.P. (PAGP) shares are trading at a P/E ratio of 6.79 times earnings posted in the trailing 12 months. The industry PAGP deals with has an average P/E of 16.4. Its P/B ratio is standing at 1.56X compared to the 4.2 industry average. It is additionally sporting a 0.12 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.44. Plains GP Holdings, L.P. has a 15.4% gross profit margin, with its operating margin around 9.7%. Alongside this, the company’s net profit margin currently stands at 1.4%.