Brown Advisory Inc. has reduced its stake in Plains All American Pipeline, L.P. (NYSE:PAA) by a significant 38.5% during the first quarter of 2023. The institutional investor disclosed this change in its recent 13F filing with the Securities and Exchange Commission. Following the sale of 20,900 shares, Brown Advisory now holds 33,337 shares of Plains All American Pipeline, valued at approximately $667,000.
Several other large investors have also adjusted their positions in the company. Barclays PLC increased its stake by 110.4% in the fourth quarter, now owning 4,226,335 shares worth $72.2 million after acquiring an additional 2,218,014 shares. Similarly, Invesco Ltd. raised its holdings by 4.6%, resulting in ownership of 27,827,930 shares valued at $475.3 million.
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. also expanded its investment in Plains All American by 8.6% during the same quarter, bringing its total to 15,297,594 shares, valued at $261.3 million. CIBC Private Wealth Group LLC increased its stake by 30.8%, now owning 4,936,982 shares worth $92.5 million. Natixis grew its investment by 33.2%, resulting in ownership of 2,707,900 shares, valued at $46.3 million. Institutional investors collectively hold 41.78% of Plains All American’s stock.
Analyst Ratings and Stock Performance
Recent analyst reports provide varying perspectives on Plains All American Pipeline. JPMorgan Chase & Co. raised their price target from $19.00 to $20.00, maintaining a “neutral” rating. Conversely, Wells Fargo & Company downgraded their rating from “overweight” to “equal weight,” while Morgan Stanley reaffirmed an “equal weight” rating with a target of $23.00. On the other hand, Wall Street Zen upgraded their rating from “hold” to “buy.”
Currently, one analyst has assigned a sell rating, six have given a hold rating, five have a buy rating, and one has issued a strong buy rating. According to data from MarketBeat, the stock has a consensus rating of “Hold” with a target price of $20.36.
As of Tuesday, shares of PAA opened at $18.73. The company’s 50-day moving average price is $17.60, and its 200-day moving average price is $18.52. Plains All American has a debt-to-equity ratio of 0.64, a quick ratio of 0.92, and a current ratio of 1.01. The stock’s one-year low and high stand at $15.58 and $21.00, respectively. Plains All American Pipeline has a market capitalization of $13.17 billion and a P/E ratio of 25.66.
Earnings and Dividend Announcements
On May 9, 2023, Plains All American Pipeline reported its quarterly earnings, posting an earnings per share (EPS) of $0.39. This figure fell short of the consensus estimate of $0.45 by $0.06. The company achieved a return on equity of 11.69% and a net margin of 1.54%. Compared to the same quarter last year, earnings per share declined from $0.41. The company’s quarterly revenue saw a slight increase of 0.1% year-over-year. Analysts predict Plains All American Pipeline will report an EPS of $1.52 for the current year.
In addition, the firm announced a quarterly dividend of $0.38 per share, to be paid on August 14, 2023, to shareholders on record as of July 31, 2023. The ex-dividend date is also set for July 31. This dividend translates to an annualized amount of $1.52, yielding 8.12%. The company’s dividend payout ratio currently stands at 163.44%.
Plains All American Pipeline, L.P. operates through its subsidiaries in the transportation, terminaling, storage, and gathering of crude oil and natural gas liquids across the United States and Canada. The company is segmented into Crude Oil and Natural Gas Liquids (NGL), providing a range of services from gathering to transportation via various means, including pipelines and rail.