Pembina Pipeline (PBA) Downgraded to “Hold” at Zacks Investment Research

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Zacks Investment Research cut shares of Pembina Pipeline (NYSE:PBA) (TSE:PPL) from a buy rating to a hold rating in a research note published on Wednesday morning.

According to Zacks, “Pembina Pipeline Corporation operates as an energy transportation and service provider. The Company operates in four segments; Conventional Pipelines, Oil Sands & Heavy Oil, Midstream & Marketing, and Gas Services. The Conventional Pipelines segment operates a pipeline network that transports crude oil, condensate, and natural gas liquids in Alberta and British Columbia. The Oil Sands & Heavy Oil segment owns and operates pipelines which deliver synthetic crude oil produced from oil sands. The Midstream & Marketing segment offers storage, terminal, and hub services. The Gas Services segment consists of natural gas gathering and processing facilities. Pembina Pipeline Corporation, formerly known as Pembina Pipeline Income Fund, is headquartered in Calgary, Canada. “

Several other equities analysts have also recently weighed in on the stock. ValuEngine cut shares of Pembina Pipeline from a hold rating to a sell rating in a research note on Tuesday, September 4th. National Bank Financial restated a buy rating on shares of Pembina Pipeline in a research note on Friday, November 2nd. CIBC restated a buy rating on shares of Pembina Pipeline in a research note on Friday, November 2nd. Finally, Raymond James restated a buy rating on shares of Pembina Pipeline in a research note on Tuesday. Three analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus target price of $40.00.

Shares of NYSE:PBA traded down $0.18 during trading on Wednesday, hitting $34.33. The company’s stock had a trading volume of 655,376 shares, compared to its average volume of 571,783. Pembina Pipeline has a 12 month low of $29.28 and a 12 month high of $36.99. The company has a quick ratio of 0.51, a current ratio of 0.70 and a debt-to-equity ratio of 0.61. The stock has a market capitalization of $17.70 billion, a PE ratio of 25.81, a price-to-earnings-growth ratio of 3.45 and a beta of 0.66.

Pembina Pipeline (NYSE:PBA) (TSE:PPL) last issued its quarterly earnings data on Thursday, November 1st. The pipeline company reported $0.60 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.47 by $0.13. Pembina Pipeline had a net margin of 18.00% and a return on equity of 11.01%. The firm had revenue of $2.05 billion for the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter in the prior year, the business earned $0.22 EPS. The business’s quarterly revenue was up 95.7% on a year-over-year basis. Analysts expect that Pembina Pipeline will post 1.69 earnings per share for the current fiscal year.

The company also recently announced a monthly dividend, which will be paid on Friday, December 14th. Shareholders of record on Friday, November 23rd will be paid a dividend of $0.144 per share. This is a boost from Pembina Pipeline’s previous monthly dividend of $0.13. The ex-dividend date of this dividend is Wednesday, November 21st. This represents a $1.73 dividend on an annualized basis and a yield of 5.03%. Pembina Pipeline’s dividend payout ratio (DPR) is presently 133.08%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tortoise Capital Advisors L.L.C. raised its stake in Pembina Pipeline by 5.5% during the 3rd quarter. Tortoise Capital Advisors L.L.C. now owns 6,192,403 shares of the pipeline company’s stock worth $210,417,000 after acquiring an additional 321,250 shares during the period. Toronto Dominion Bank raised its stake in Pembina Pipeline by 14.5% during the 3rd quarter. Toronto Dominion Bank now owns 4,634,616 shares of the pipeline company’s stock worth $157,679,000 after acquiring an additional 585,361 shares during the period. Connor Clark & Lunn Investment Management Ltd. raised its stake in Pembina Pipeline by 105.7% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 4,554,569 shares of the pipeline company’s stock worth $157,642,000 after acquiring an additional 2,340,323 shares during the period. NN Investment Partners Holdings N.V. raised its stake in Pembina Pipeline by 1,383.0% during the 2nd quarter. NN Investment Partners Holdings N.V. now owns 3,721,470 shares of the pipeline company’s stock worth $128,762,000 after acquiring an additional 3,470,534 shares during the period. Finally, Kayne Anderson Capital Advisors LP raised its stake in Pembina Pipeline by 6.2% during the 3rd quarter. Kayne Anderson Capital Advisors LP now owns 3,707,800 shares of the pipeline company’s stock worth $126,014,000 after acquiring an additional 216,600 shares during the period. Institutional investors own 46.98% of the company’s stock.

Pembina Pipeline Company Profile

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America. It operates through three divisions: Pipelines, Facilities, and Marketing & New Ventures. The company operates approximately 10,000 kilometers of pipeline network that transports hydrocarbon liquids and extends across Alberta and parts of British Columbia, Saskatchewan, and North Dakota; and owns and operates the Nipisi and Mitsue pipelines, which provide transportation for producers operating in the Pelican Lake and Peace River heavy oil regions of Alberta; transports synthetic crude oil for the Syncrude project and the Horizon project to delivery points near Edmonton, Alberta; and operates Cheecham Lateral, which transports synthetic crude to oil sands producers operating southeast of Fort McMurray, Alberta.

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