Plains All American Pipeline L.P. (NYSE:PAA) Relative Strength Index (RSI) is 69.43, with weekly volatility at 6.15% and ATR at 0.49. The PAA stock’s 52-week price range has touched low of $3.00 and a $19.39 high. Intraday shares traded counted 8.53 million, which was -30.82% lower than its 30-day average trading volume of 6.52M. Its shares traded higher over the last trading session, gaining 8.43% on 12/03/20. The shares fell to a low of $8.29 before closing at $9.00. PAA’s previous close was $8.30 while the outstanding shares total 728.00M. The firm has a beta of 2.29.
Investors have identified the Oil & Gas Midstream company Plains All American Pipeline L.P. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.83 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Plains All American Pipeline L.P. (PAA) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PAA, the company has in raw cash 46.0 million on their books with 790.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 3405000000 million total, with 3804000000 million as their total liabilities.
PAA were able to record 650.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -36.0 million. In cash movements, the company had a total of 1.26 billion as operating cash flow.
Potential earnings growth for Plains All American Pipeline L.P. (PAA)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Plains All American Pipeline L.P. recorded a total of 5.83 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -35.2% coming in sequential stages and their sales for the third quarter increasing by 44.71%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 5.36 billion trying to sell their products during the last quarter, with the result yielding a gross income of 472.0 million. This allows shareholders to hold on to 728.00M with the revenue now reading 0.20 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.32 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.51 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PAA sounds very interesting.
Is the stock of PAA attractive?
In related news, Chairman and CEO, Chiang Willie CW bought 45,400 shares of the company’s stock in a transaction that recorded on Mar 16. The purchase was performed at an average price of 5.45, for a total value of 247,530. As the purchase deal closes, the EVP – Commercial, Goebel Jeremy L. now bought 3,000 shares of the company’s stock, valued at 19,990. Also, President & CCO, PEFANIS HARRY N bought 20,000 shares of the company’s stock in a deal that was recorded on Mar 12. The shares were cost at an average price of 6.96 per share, with a total market value of 139,270. Following this completion of disposal, the President & CCO, PEFANIS HARRY N now holds 30,000 shares of the company’s stock, valued at 424,812. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.