uploads///ownership changes

Are Institutional Investors Bullish on Sunoco Logistics?

By

Updated

Number of holders

In this article, we’ll analyze the institutional ownership of Sunoco Logistics Partners (SXL). The number of institutional holders in SXL has fallen to 324 as of November 28, 2016, as compared to 371 at the end of 2015. However, the percentage of shares held has risen 400 basis points.

Article continues below advertisement

Recent institutional activity in SXL

The recent institutional activity in SXL shows total buying of 17.6 million shares, while 4.6 million shares were sold. These numbers indicate mostly positive sentiments for the stock.

Harvest Fund Advisors and Citi Investment Research are the largest buyers, with 6.8 million and 3.6 million shares bought, respectively, according to the latest filing on September 30, 2016. Tortoise Capital Advisors and Oppenheimer Funds are largest sellers, with 2.4 million and 0.9 million shares sold.

Why are so many institutional investors bullish on SXL?

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

  • joint venture with Exxon Mobil (XOM) in the Permian region, in which SXL would own 85% in the deal, while ExxonMobil would hold the remaining 15% (see “Inside Sunoco Logistics’ JV with ExxonMobil: Key Highlights.”)
  • SXL’s acquisition of Vitol’s integrated crude oil business in the Midland Basin including 50% interest in SunVit Pipeline
  • increased presence in the Prolific Permian and Delaware Basins
  • strong distribution growth profile

Top five holders

Tortoise Capital Advisors, Oppenheimer Funds, Goldman Sachs Group, Alps Advisors, and Kayne Anderson Capital are among the top five holders in SXL. Tortoise Capital Advisors is the largest institutional holder in SXL. It alone held 7.8% in SXL on November 28, 2016.

Advertisement

More From Market Realist