Plains GP Holdings LP (PAGP) Shares Fall 20% on Earnings & Revenue Miss


Shares of Plains GP Holdings LP (NYSE:PAGP) are trading down big today after the company reported their 2015 Fourth Quarter earnings to the disappointment of Wall Street. Wall Street had been expecting earnings per share to come in at around $0.14, while the company reported an EPS of just $0.11. Additionally, revenue for the quarter was reported at just $5 billion, compared to the Street’s estimate of $8.62 billion. This came as a surprise to the negative side for analysts and investors alike.

The two previous quarters saw Plains GP Holdings LP (NYSE:PAGP) beat estimates by quite large margins, so this even makes matters worse.

The stock is down 20.09% or $1.28 following the news, hitting $5.09 per share. About 8.53M shares traded hands or 77.71% up from the average. PAGP has declined 74.23% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 64.76%.

From a total of 12 analysts covering Plains GP Holdings LP (NYSE:PAGP) stock, 5 rate it a “Buy”, 1 a “Sell”, and 6 a “Hold”. This means that 42% of the ratings are positive. The highest target price is $29 while the lowest target price is $10. The mean of all analyst targets is $17.09 which is 235.76% above today’s ($5.09) stock price. Plains GP Holdings LP was the topic of 22 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Robert W. Baird downgraded shares on February 8 to a “Underperform” rating. Howard Weil initiated shares with a”Sector Perform” rating and a $22.0 target share price in their report from an August 24. Stifel Nicolaus downgraded PAGP stock in a recent report from January 13 to a “Hold” rating. Citigroup upgraded the rating on August 7. Citigroup has a “Buy” rating and a $21 price target on shares. Finally, Morgan Stanley downgraded the stock to a “Equal-Weight” rating in a report they issued on a November 5.

The institutional sentiment decreased to 0.94 in Q2 2015. It’s down 0.37, from 1.31 in 2015Q2. The ratio dived, as 48 funds sold all their Plains GP Holdings LP shares they owned while 67 reduced their positions. 25 funds bought stakes while 83 increased their total positions. Institutions now own 208.59 million shares which is 0.66% more than the previous share count of 207.21 million in 2015Q2.

Zimmer Partners Lp holds 8.36% of its total portfolio in Plains GP Holdings LP, equating to 6.28 million shares. Salient Capital Advisors Llc owns 11.64 million shares representing 4.95% of their total US portfolio. Moreover, Rr Advisors Llc has 4.07% of their total portfolio invested in the company, equating to 1.43 million shares. The Texas-based Eagle Global Advisors Llc has a total of 3.54% of their portfolio invested in the stock. Partners Group Holding Ag, a Switzerland-based fund reported 517,200 shares owned.

Plains GP Holdings, L.P. , owns an interest in the general partner and incentive distribution rights of Plains All American Pipeline, L.P (PAA). The company has a market cap of $2.62 billion. The Firm has no separate operating activities apart from those conducted by PAA. It has 8.97 P/E ratio. PAA owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products.