Shell Midstream Partners (SHLX) has fallen nearly 32% year-to-date. Its midstream energy peers Plains All American Pipeline (PAA) and Magellan Midstream Partners (MMP) rose 43% and 11%, respectively, whereas Sunoco Logistics (SXL) fell 5% in the same period. The Alerian MLP ETF (AMLP), which holds the top infrastructure MLPs, has gained 5% over the same timeframe.
The chart below shows Shell Midstream Partners’s stock price along with its 50-day and 200-day moving averages.
Shell Midstream Partners (SHLX) is currently trading at $28.10 which is 3% above its 50-day moving average. It is trading 12% below its 200-day moving average. SHLX has been trading mostly below its 50-day and 200-day moving averages since the end of May 2016. The stock crossed above its 50-day moving average on December 21, 2016.
Shell Midstream Partners traded weakly in 2016, partly affected by investors’ dislike of several factors. The major factors include dilution due to the company’s 10.5 million units offering in May, incidents at the company’s Bengal and Colonial pipeline systems in August and September, and customers shifting below their commitments on the company’s Zydeco system.
In this series, we’ll analyze Shell Midstream Partners’s price targets, its leverage, cash available for distribution, capital expenditure, and distribution growth. We’ll also analyze its valuation, institutional activity, and short interest. Let’s start with Shell Midstream Partners’s price targets and analyst recommendations.