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Are Institutional Investors Bullish on Buckeye Partners?

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Number of holders

In this article, we’ll analyze the institutional ownership of Buckeye Partners (BPL). The number of holders of BPL’s stock had risen to 482 as of July 11, 2016, compared to 468 at the end of 2015. Moreover, the percent of float held rose by 0.5%. This could indicate a bullish sentiment on BPL’s stock.

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Number of buyers and sellers

The number of buyers of BPL’s stock fell by 14.0%, while the number of new buyers rose by 14.6% from the start of 2016 to July 11, 2016. The number of sellers rose by 14.6% while the number of sell-offs fell by 37.3% during the same timeframe. Two out of these four factors indicate bullish sentiments, while the remaining two indicate bearish sentiments on the stock.

Why are institutional investors bullish on BPL?

Institutional investors’ bullishness toward BPL could be attributed to the following factors:

  • slight recovery in commodity prices since the beginning of 2016
  • significant renewal of storage capacity up for renewal in 2016. According to BPL’s 1Q16 earnings call, it “has already re-contracted over 8 million of the approximately 12 million barrels of storage capacity to be renewed in 2016.”
  • lower winter temperatures expected in 2016 compared to 2015

Lower temperatures drive BPL’s distillate volumes. NGL Energy Partners (NGL) and DCP Midstream Partners (DPM) are among the midstream MLPs that benefit from low winter temperatures.

Top five holders

Tortoise Capital Advisors, Alps Advisors, Oppenheimer Funds, Harvest Fund Advisors, and Goldman Sachs Group are the top five holders of BPL. Tortoise Capital Advisors is the largest institutional holder of BPL. It held 8.7% in the stock as of July 11, 2016.

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