Enterprise Products Partners L.P. (EPD) Ready To Tore A Hole Through The Roof

After opening Tuesday at around $28.09, Enterprise Products Partners L.P. (NYSE:EPD) stock surged to as high as $28.11. It then made a downturn, dipping as low as $27.67. Although the stock bounced a bit into the close, it finished the day at $27.82, up 0.07 points or 0.25 percent on the day. The final volume for the day was 3.62 million, which was less than its average volume. The firm is left with a market cap of $61.2 billion and now has 2.2 billion shares outstanding. Enterprise Products Partners L.P. (EPD) stock has gained 2.92 percent of market value in 21 trading days.

EPD stock has a trailing 3-year beta of 0.95, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.67 a share in the trailing twelve months. The stock’s value has surged 13.14 percent year to date (YTD) against a rise of 8.81 percent in 12 month’s time. The company’s shares still trade -7.42 percent away from its 1-year high of $30.05 and 22.37 percent up from 52-week low of $22.73. The average consensus rating on the company is 1.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Enterprise Products Partners L.P. (EPD) will probably climb 20.35 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $39 price as 12-month high target. This represents a whopping 40.19 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34, which represents a return potential of 22.21 percent when compared to the closing price of the stock of $27.82 on Tuesday, February 12. The lowest price target for the stock is $30 — slightly more than 7.84 percent from EPD’s current share price.

History has shown that shares in Enterprise Products Partners L.P. have gone up on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of EPD’s Q1 earnings on April 30. Analysts are forecasting revenue to climb 0.4 percent to $9.34B in the fiscal first quarter, while earnings are seen soaring by nearly 17.07 percent to $0.48 per share. It earned $0.59 per share, better than the $0.5, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.18B, worse than the $9.3B analysts expected. Earnings are estimated to increase by 29.9 percent this year, 5.56 percent next year and continue to increase by 11.98 percent annually for the next 5 years.

Let’s take a look at some insider activity at Enterprise Products Partners L.P. (NYSE:EPD) and see the pattern. The earliest insider trade took place on 12/31/2018. Teague Aj gathered a total of 10 thousand shares of company at average share price of $24.36. The total for the purchase was set at $243.6 thousand. After this transaction, the CEO account balance stood at 1.75 million shares. The stock grew 14.2 percent since that insider purchase. On 12/20/2018, Teague Aj, CEO, purchased 10 thousand shares at a price per share of $24.61. This added 246.1 thousand shares to the insider’s fortune and the stock saw a 13.04 percent rally in value since the news became public. This transaction left 1.74 million shares in the CEO account.

On 12/19/2018, Director Barth Carin Marcy performed a purchase transaction worth $250 thousand. This purchase at $25 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 11.28 percent increase since the transaction was reported. The insider now is left with 41.34 thousand shares remaining in the account. Teague Aj, who performs the CEO job, bought 15.01 thousand shares for $394.93 thousand. The acquisition occurred on 11/14/2018 was priced at $26.32 per share. The share price soared 5.7 percent since the reporting date. Teague Aj now left with a stake of 1.73 million EPD stock worth $48.07 million after the insider buying.

The stock is currently hovering around the first support level of $27.62. Below this, the next support is placed in the zone of $27.43. Till the time, the EPD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.15 on daily chart, which may remain a cause for concern. If the price breaks below $27.43 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $28.06 mark may result into a pull-back move towards $28.31 level.

Shares of Enterprise Products Partners L.P. (EPD) are trading at a P/E ratio of 16.62 times earnings reported for the past 12 months. The industry EPD operates in has an average P/E of 50.96. Its P/E ratio went as low as 20.35X and as high as 27.18 over the 5-year span.Further, it is sporting a 1.71 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.4. 18.8 percent is the gross profit margin for Enterprise Products Partners L.P. and operating margin sits at 11.5 percent. Along with this, the net profit margin is 8.2 percent.