TC Pipelines (NYSE:TCP) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “TC PipeLines' large-scale value-creating projects position it for strong returns even in a low commodity price environment. As it is, TC PipeLines boasts of a stable, recurring and low-risk earnings and cash flow model, while TC PipeLines’ long history of stable cash distributions has delivered value to its investors. Moreover, the partnership’s agreement to purchase interests in the Iroquois Gas Transmission System is likely to strengthen its cash flow and earnings further. However, the partnership's large exposure to the weak natural gas prices along with unfavourable tax overhaul could weigh on the stock. More elevated leverage of over 66% restricts the financial flexibility of the firm. As such, units of the partnership have declined 40% over a year, as against the industry’s loss of just 0.3%. The interplay of these factors form the basis of our cautious stance on the stock.”
Several other research firms have also issued reports on TCP. Citigroup upped their price objective on TC Pipelines from $27.50 to $33.00 and gave the company a “hold” rating in a research note on Tuesday, July 31st. Barclays upped their price objective on TC Pipelines from $26.00 to $32.00 and gave the company a “sell” rating in a research note on Monday, August 6th. Four equities research analysts have rated the stock with a sell rating and seven have issued a hold rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $47.00.
TC Pipelines (NYSE:TCP) last released its quarterly earnings data on Thursday, August 2nd. The pipeline company reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.19. The firm had revenue of $111.00 million for the quarter. TC Pipelines had a return on equity of 26.67% and a net margin of 66.44%. equities research analysts expect that TC Pipelines will post 3.81 EPS for the current year.
Several institutional investors have recently bought and sold shares of TCP. Cribstone Capital Management LLC acquired a new position in shares of TC Pipelines in the second quarter valued at approximately $156,000. Ferris Capital LLC grew its position in shares of TC Pipelines by 35.7% in the second quarter. Ferris Capital LLC now owns 6,682 shares of the pipeline company’s stock valued at $173,000 after purchasing an additional 1,758 shares during the last quarter. Koch Industries Inc. grew its position in shares of TC Pipelines by 36.7% in the first quarter. Koch Industries Inc. now owns 10,309 shares of the pipeline company’s stock valued at $358,000 after purchasing an additional 2,765 shares during the last quarter. Price Capital Management Inc. acquired a new position in shares of TC Pipelines in the second quarter valued at approximately $504,000. Finally, GSA Capital Partners LLP acquired a new position in shares of TC Pipelines in the second quarter valued at approximately $568,000. 60.01% of the stock is currently owned by institutional investors.
TC Pipelines Company Profile
TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The company has interests in eight natural gas interstate pipeline systems that transport approximately 10.4 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern, and Eastern United States.
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