The Case for and Against Plains GP Holdings, L.P. (PAGP)

Plains GP Holdings, L.P. (PAGP) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Pipelines. The stock has been active on the tape, currently trading at $31.55, down from yesterday’s close by -4.39%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Plains GP Holdings, L.P. (PAGP) currently trades with a market capitalization of $7.56 Billion. That value represents a market adjusting for revenues that have been growing by 19.12 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For PAGP, you can get a sense of how sustainable that is by a levered free cash flow of $-742 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.55 on a per share basis this quarter. Perhaps, that suggests something about why 0.45% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Plains GP Holdings, L.P. recorded a 52-week high of $35.49. It is now trading 3.94% off that level. The stock is trading $33.15 its 50-day moving average by 1.6%. The stock carved out a 52-week low down at $17.77.

In recent action, Plains GP Holdings, L.P. (PAGP) has made a move of -6.02% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 23.85, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.17% with $237.93 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PAGP.

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