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Are Institutional Investors Bullish on Sunoco Logistics?

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Number of holders

In this part, we’ll analyze the institutional ownership of Sunoco Logistics Partners (SXL). The number of holders in SXL has increased to 385 as of August 29, 2016, as compared to 371 at the end of 2015. The percentage of float held increased by 4.2%, which might indicate a bullish sentiment in SXL’s stock.

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Number of buyers and sellers

YTD (year-to-date) as of August 29, 2016, the number of total SXL buyers has decreased by 11.3%, while the number of new buyers has increased by 30.0%. The number of sellers has increased by 2.0%, but the number of selloffs decreased by 32.6% during the same time frame. These numbers indicate mostly positive sentiments toward the stock.

Why are institutional investors bullish on SXL?

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

  • project financing of the Bakken Pipeline project
  • reduced capital burdens through the asset sale in the Bakken Pipeline project
  • robust Permian and Delaware throughput volumes, with both Energy Transfer Partners (ETP) and EnLink Midstream Partners (ENLK) remaining optimistic about Delaware production growth

Top five holders

Tortoise Capital Advisors, Oppenheimer Funds, Goldman Sachs Group, Alps Advisors, and Kayne Anderson Capital are the top five holders in SXL. Tortoise Capital Advisors is the largest institutional holder, accounting for 9.2% as of August 29, 2016. UBS Group and Tortoise Capital Advisors reduced their holdings in SXL by 2.0% and 2.6%, respectively, according to the latest filing on June 30, 2016. At the same time, Chickasaw Capital Management and ING Groep NV increased their ownership percentage by 6.0% and 137.0%, respectively.

Now let’s look at SXL’s short interest.

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