Brown Advisory Inc. has significantly reduced its investment in Plains All American Pipeline, L.P. (NYSE:PAA) by 38.5% during the first quarter of 2024. The institutional investor reported its holdings in a recent 13F filing with the Securities and Exchange Commission, revealing that it now owns 33,337 shares after divesting 20,900 shares during this period. At the close of the most recent reporting period, Brown Advisory’s stake in Plains was valued at approximately $667,000.
Other institutional investors also adjusted their positions in Plains All American Pipeline. Notably, Barclays PLC increased its stake by 110.4% in the fourth quarter, acquiring an additional 2,218,014 shares to reach a total of 4,226,335 shares, valued at $72,186,000. Invesco Ltd. also raised its holdings by 4.6%, securing 27,827,930 shares valued at $475,301,000. Similarly, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. expanded its stake by 8.6%, and CIBC Private Wealth Group LLC increased its investment by 30.8%.
Hedge funds and institutional investors collectively own 41.78% of Plains All American Pipeline’s stock, indicating significant institutional interest in the company.
Analyst Ratings and Stock Performance
Several brokerages have recently updated their ratings and price targets for Plains All American Pipeline. On June 18, 2024, JPMorgan Chase & Co. raised its price objective from $19.00 to $20.00, maintaining a “neutral” rating. Conversely, Wells Fargo & Company downgraded the stock from “overweight” to “equal weight” on May 9, 2024. Morgan Stanley reaffirmed an “equal weight” rating with a target price of $23.00, while Scotiabank lowered its target from $20.00 to $19.00, assigning a “sector outperform” rating.
Currently, the stock has a consensus rating of “Hold” from analysts, with a target price averaging $20.36. As of Tuesday, shares of PAA opened at $18.73, maintaining a 50-day moving average of $17.60 and a 200-day moving average of $18.52. The company’s market capitalization stands at $13.17 billion, with a P/E ratio of 25.66.
During its last earnings report on May 9, 2024, Plains All American Pipeline reported earnings per share (EPS) of $0.39, falling short of the consensus estimate of $0.45. The company noted a year-over-year revenue increase of 0.1%, while the return on equity was 11.69% and the net margin was 1.54%.
Dividend Announcement
In addition to the recent investment changes, Plains All American Pipeline announced a quarterly dividend to be distributed on August 14, 2024. Shareholders of record as of July 31, 2024 will receive a dividend of $0.38 per share, equating to an annualized dividend of $1.52 and a yield of 8.12%. The company’s current dividend payout ratio is notably high at 163.44%.
Plains All American Pipeline, L.P. operates primarily in the transportation, terminaling, storage, and gathering of crude oil and natural gas liquids across the United States and Canada. The company is divided into two main segments: Crude Oil and NGL, encompassing various methods of gathering and transporting these resources.
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