American Midstream Partners LP (NYSE:AMID) Stock Responds Buillishly to $75 Million Purchase Deal


American Midstream Partners LP (NYSE:AMID) shares are responding extremely bullishly today after the company announced that ArcLight Capital Partners, LLC has approved a huge unit purchase program where they may purchase up to $75 million in common units of American Midstream Partners LP (NYSE:AMID) stock. The deal has provided for speculation of increased demand, most likely leading to today’s large runup in share price.

According to the release, ArcLight is expected to begin purchasing shares as soon as tomorrow (December 22), via either open market buys, privately negotiated transaction or another method. Details are sparse, and the agreement doesn’t appear to require ArcLight to make any minimum purchase.

The stock is up 46.34% or $1.9 following the news, hitting $6 per share. About 390,105 shares traded hands or up 5.90% from the average. AMID has declined 77.12% since May 18, 2015 and is currently downtrending. It has underperformed the S&P500 by 74.86%.

From a total of 3 analysts covering American Midstream Partners LP (NYSE:AMID) stock, 1 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $13 while the lowest target price is $9. The mean of all analyst targets is $11.67 which is 94.50% above today’s ($6) stock price. American Midstream Partners LP was the topic of 4 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. Citigroup initiated shares on November 19 with a “Neutral” rating. UBS upgraded AMID stock in a recent report from August 12 to a “Neutral” rating.

The institutional sentiment increased to 1.2 in Q2 2015. It’s up 0.51, from 0.69 in 2015Q2. The ratio is positive, as 5 funds sold all their American Midstream Partners LP shares they owned while 10 reduced their positions. 6 funds bought stakes while 12 increased their total positions. Institutions now own 13.34 million shares which is 42.48% more than the previous share count of 9.36 million in 2015Q2.

Price Michael F holds 0.58% of its total portfolio in American Midstream Partners LP, equating to 350,000 shares. Salient Capital Advisors Llc owns 1.28 million shares representing 0.35% of their total US portfolio. Moreover, Spirit Of America Management Corp Ny has 0.17% of their total portfolio invested in the company, equating to 72,279 shares. The Switzerland-based Starr International Co Inc has a total of 0.11% of their portfolio invested in the stock. Hilton Capital Management Llc, a New York-based fund reported 20,550 shares owned.

Since September 15, 2015, the stock had 3 buys, and 0 insider sales for a total of $863,088 in net activity. Mathews William B. bought 22,104 shares worth $249,996. Sullivan Kevin J. bought 10,000 shares worth $113,100. Bergstrom Stephen W bought 44,208 shares worth $499,992.

American Midstream Partners, LP owns, operates, develops and acquires a diversified portfolio of midstream energy assets. The company has a market cap of $134.38 million. The Firm gathers, treats, processes and transports natural gas, fractionates natural gas liquids and stores specialty chemical products through its ownership and operation of 12 gathering systems, five processing facilities, three fractionation facilities, three interstate pipelines, five intrastate pipelines and four marine terminal sites. It currently has negative earnings. The Firm operates through three divisions: Gathering and Processing, Transmission and Terminals.