Zacks Investment Research upgraded shares of Buckeye Partners (NYSE:BPL) from a hold rating to a buy rating in a research note released on Monday. They currently have $33.00 price target on the pipeline company’s stock.
According to Zacks, “Buckeye Partners’ earnings per unit and revenues in the fourth quarter surpassed the respective Zacks Consensus Estimate. Buckeye Partners has an attractive portfolio of refined petroleum-product transportation and storage assets in the key geographical markets. Its organic capital growth projects will drive the performance in the domestic as well as in the international arenas. The decision to sell non-core assets and focus on high-return domestic assets will boost the performance of the partnership. In the past six months, units of Buckeye Partners have outperformed its industry. However, Buckeye Partners’ dependence on limited group of customers for bulk of its storage revenues could adversely impact the partnership’s performance. Increasing competition, stringent regulations and rising challenges for segregated storage may largely impact its cash flows and financial position.”
BPL has been the subject of a number of other reports. ValuEngine raised Buckeye Partners from a sell rating to a hold rating in a report on Saturday, December 15th. Bank of America lifted their price target on Buckeye Partners from $37.00 to $38.00 and gave the stock a neutral rating in a report on Monday, November 5th. Royal Bank of Canada reaffirmed a hold rating and set a $38.00 price target on shares of Buckeye Partners in a report on Tuesday, November 6th. Goldman Sachs Group cut Buckeye Partners from a neutral rating to a sell rating and cut their target price for the stock from $34.00 to $30.00 in a research report on Wednesday, January 2nd. Finally, Stifel Nicolaus set a $34.00 target price on Buckeye Partners and gave the stock a buy rating in a research report on Thursday, December 20th. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating and two have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $40.53.
Buckeye Partners (NYSE:BPL) last announced its quarterly earnings results on Friday, February 8th. The pipeline company reported $0.90 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.69 by $0.21. The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $958.86 million. Buckeye Partners had a positive return on equity of 9.41% and a negative net margin of 1.44%. Buckeye Partners’s revenue for the quarter was up 13.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.85 EPS. On average, equities research analysts expect that Buckeye Partners will post 2.61 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 26th. Stockholders of record on Tuesday, February 19th will be given a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 9.27%. The ex-dividend date of this dividend is Friday, February 15th. Buckeye Partners’s dividend payout ratio (DPR) is currently 167.60%.
Institutional investors and hedge funds have recently bought and sold shares of the company. Capital Investment Advisory Services LLC acquired a new stake in shares of Buckeye Partners during the fourth quarter worth about $36,000. Ipswich Investment Management Co. Inc. acquired a new position in Buckeye Partners in the 4th quarter valued at about $122,000. Advisors Asset Management Inc. increased its position in Buckeye Partners by 3,747.9% in the 2nd quarter. Advisors Asset Management Inc. now owns 167,229 shares of the pipeline company’s stock valued at $142,000 after acquiring an additional 162,883 shares during the period. First Hawaiian Bank acquired a new position in Buckeye Partners in the 3rd quarter valued at about $143,000. Finally, Girard Partners LTD. acquired a new position in Buckeye Partners in the 3rd quarter valued at about $163,000. Institutional investors and hedge funds own 68.89% of the company’s stock.
Buckeye Partners Company Profile
Buckeye Partners, L.P. owns and operates liquid petroleum products pipelines in the United States and internationally. The company operates through three segments: Domestic Pipelines & Terminals, Global Marine Terminals, and Merchant Services. The Domestic Pipelines & Terminals segment transports liquid petroleum products, including gasoline, jet fuel, and various distillates; refined petroleum products; and crude oil.
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