Traders Purchase High Volume of Call Options on Pembina Pipeline (NYSE:PBA)

Pembina Pipeline Corp. (NYSE:PBA) (TSE:PPL) was the target of unusually large options trading on Wednesday. Stock investors purchased 4,228 call options on the stock. This is an increase of 1,867% compared to the typical daily volume of 215 call options.

Pembina Pipeline Trading Down 1.8%

Shares of NYSE:PBA traded down $0.85 during trading on Wednesday, hitting $47.44. The company had a trading volume of 67,542 shares, compared to its average volume of 1,395,706. The stock has a market cap of $27.58 billion, a price-to-earnings ratio of 24.81 and a beta of 0.58. The company has a debt-to-equity ratio of 0.84, a current ratio of 0.83 and a quick ratio of 0.68. The company has a fifty day simple moving average of $45.40 and a two-hundred day simple moving average of $42.03. Pembina Pipeline has a one year low of $35.45 and a one year high of $50.10.

Pembina Pipeline (NYSE:PBA) (TSE:PPL) last released its quarterly earnings results on Thursday, May 7th. The pipeline company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.07. Pembina Pipeline had a return on equity of 11.47% and a net margin of 22.22%.The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.06 billion. During the same quarter in the prior year, the firm posted $0.80 EPS. Pembina Pipeline’s quarterly revenue was down 7.7% compared to the same quarter last year. As a group, equities analysts forecast that Pembina Pipeline will post 2.28 earnings per share for the current year.

Pembina Pipeline Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a $0.735 dividend. This is a boost from Pembina Pipeline’s previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Monday, June 15th. This represents a $2.94 annualized dividend and a yield of 6.2%. Pembina Pipeline’s dividend payout ratio is currently 108.33%.

Analyst Ratings Changes

A number of research firms recently weighed in on PBA. BMO Capital Markets reissued a “market perform” rating on shares of Pembina Pipeline in a report on Tuesday. JPMorgan Chase & Co. upped their price target on shares of Pembina Pipeline from $55.00 to $60.00 and gave the company a “neutral” rating in a research note on Thursday, March 19th. Wall Street Zen upgraded shares of Pembina Pipeline from a “sell” rating to a “hold” rating in a research report on Sunday, May 10th. Weiss Ratings raised shares of Pembina Pipeline from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, March 2nd. Finally, Royal Bank Of Canada boosted their target price on shares of Pembina Pipeline from $64.00 to $68.00 and gave the stock an “outperform” rating in a report on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $62.67.

Institutional Trading of Pembina Pipeline

A number of large investors have recently made changes to their positions in PBA. Western Wealth Management LLC purchased a new position in Pembina Pipeline in the 1st quarter worth about $25,000. Tobam purchased a new stake in Pembina Pipeline in the 4th quarter valued at about $28,000. Caitong International Asset Management Co. Ltd bought a new position in Pembina Pipeline in the 3rd quarter worth about $31,000. Westside Investment Management Inc. increased its position in shares of Pembina Pipeline by 100.0% during the third quarter. Westside Investment Management Inc. now owns 808 shares of the pipeline company’s stock worth $32,000 after acquiring an additional 404 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Pembina Pipeline during the fourth quarter worth approximately $36,000. 55.37% of the stock is owned by hedge funds and other institutional investors.

About Pembina Pipeline

Pembina Pipeline Corporation (NYSE: PBA) is a North American energy infrastructure company that develops, owns and operates midstream assets that transport, store and process hydrocarbons. Its core business focuses on the transportation of crude oil, natural gas liquids (NGLs) and condensate, along with gas processing, fractionation, storage and related marketing services. Pembina serves producers, refiners and other energy companies by providing pipeline capacity, terminal services and midstream solutions that link upstream production to downstream markets and export facilities.

The company’s asset base is concentrated in Western Canada, including major operations in Alberta and British Columbia, and it also has operations and commercial activities that extend into the United States.