Enterprise Products Partners L P (NYSE: EPD) has experienced a decline in its stock price by -0.65 compared to its previous closing price of 29.34. However, the company has seen a fall of -0.82% in its stock price over the last five trading days. seekingalpha.com reported 2024-09-02 that Dividend compounding is a powerful strategy that can produce very attractive returns if the patience and right investment selection are there. To select the right instruments investors have to find high yielding companies that have robust capital structures and ample cash flows to fund incremental dividend growth. In this article I elaborate on two investment picks that tick all of the necessary boxes in order to qualify for sustainable dividend compounding process.
Is It Worth Investing in Enterprise Products Partners L P (NYSE: EPD) Right Now?
Enterprise Products Partners L P (NYSE: EPD) has a price-to-earnings ratio of 11.12x that is above its average ratio. Additionally, the 36-month beta value for EPD is 1.01. There are mixed opinions on the stock, with 11 analysts rating it as a “buy,” 11 rating it as “overweight,” 2 rating it as “hold,” and 0 rating it as “sell.”
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The public float for EPD is 1.45B and currently, short sellers hold a 0.96% ratio of that float. The average trading volume of EPD on September 04, 2024 was 4.17M shares.
EPD’s Market Performance
The stock of Enterprise Products Partners L P (EPD) has seen a -0.82% decrease in the past week, with a 2.35% rise in the past month, and a 3.26% gain in the past quarter. The volatility ratio for the week is 1.28%, and the volatility levels for the past 30 days are at 1.74% for EPD. The simple moving average for the last 20 days is 0.65% for EPD’s stock, with a simple moving average of 3.93% for the last 200 days.
Analysts’ Opinion of EPD
Many brokerage firms have already submitted their reports for EPD stocks, with Goldman repeating the rating for EPD by listing it as a “Neutral.” The predicted price for EPD in the upcoming period, according to Goldman is $28 based on the research report published on October 06, 2023 of the previous year 2023.
EPD Trading at -0.04% from the 50-Day Moving Average
After a stumble in the market that brought EPD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.00% of loss for the given period.
Volatility was left at 1.74%, however, over the last 30 days, the volatility rate increased by 1.28%, as shares surge +4.56% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +2.03% upper at present.
During the last 5 trading sessions, EPD fell by -0.82%, which changed the moving average for the period of 200-days by +11.17% in comparison to the 20-day moving average, which settled at $29.03. In addition, Enterprise Products Partners L P saw 10.63% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at EPD starting from TEAGUE AJ, who purchase 4,180 shares at the price of $29.35 back on Aug 27 ’24. After this action, TEAGUE AJ now owns 74,911 shares of Enterprise Products Partners L P, valued at $122,681 using the latest closing price.
TEAGUE AJ, the Co-Chief Executive Officer of Enterprise Products Partners L P, purchase 2,410 shares at $26.17 during a trade that took place back on Dec 19 ’23, which means that TEAGUE AJ is holding 6,060 shares at $63,076 based on the most recent closing price.
Stock Fundamentals for EPD
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.13 for the gross margin
The net margin for Enterprise Products Partners L P stands at 0.11. The total capital return value is set at 0.12. Equity return is now at value 20.79, with 8.08 for asset returns.
Based on Enterprise Products Partners L P (EPD), the company’s capital structure generated 0.52 points at debt to capital in total, while cash flow to debt ratio is standing at 0.26. The debt to equity ratio resting at 1.09. The interest coverage ratio of the stock is 10.41.
Currently, EBITDA for the company is 8.81 billion with net debt to EBITDA at 3.51. When we switch over and look at the enterprise to sales, we see a ratio of 1.71. The receivables turnover for the company is 6.32for trailing twelve months and the total asset turnover is 0.74. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.91.
Conclusion
In conclusion, Enterprise Products Partners L P (EPD) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
