Taking a Fresh Look at Plains All American Pipeline, L.P. (PAA)

Plains All American Pipeline, L.P. (PAA) 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 $23.52, up from yesterday’s close by 2.26%. 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

Plains All American Pipeline, L.P. (PAA) currently trades with a market capitalization of $17.22 Billion. That value represents a market adjusting for revenues that have been growing by 25.96 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.19 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.25 on a per share basis this quarter. Perhaps, that suggests something about why 0.67% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Plains All American Pipeline, L.P. recorded a 52-week high of $26.98. It is now trading 3.46% off that level. The stock is trading $23.62 its 50-day moving average by 0.1%. The stock carved out a 52-week low down at $18.38.

In recent action, Plains All American Pipeline, L.P. (PAA) has made a move of -0.25% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 10.69, and it’s gotten there by action that has been less 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 2.64% with $427.91 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PAA.

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