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Are Institutional Investors Bullish on DCP Midstream?

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Number of holders

In this article, we’ll analyze the institutional ownership of DCP Midstream (DCP). The number of holders in DCP Midstream has increased to 176 on February 23, 2017, compared to 167 during the beginning of 2017. Moreover, the number of shares held by institutional investors increased 4.2%.

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Recent institutional activity in DCP

The recent institutional activity in DCP Midstream shows total buying of 3.4 million shares while 2.3 million shares were sold. This excludes the shares issued to DCP Midstream LLC as part of the GP-LP merger deal.

These numbers indicate mostly positive sentiment for the stock. Nuveen Asset Management and UBS Securities are the biggest buyers, with 2.2 million and 0.7 million shares bought, respectively, according to the latest filing for December 31, 2016. ING Groep and Goldman Sachs Asset Management are the largest sellers, with 0.9 million and 0.4 million shares sold, respectively.

Why are institutional investors bullish on DCP Midstream?

Institutional investors’ bearishness toward DCP Midstream could be attributed to the following factors:

  • increased 2017 EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] guidance
  • announcement of new expansion opportunities
  • simplified organizational structure through the merger with the GP
  • market-leading position in natural gas processing and NGLs (natural gas liquids) production business.

Top five holders

Advisory Research, Kayne Anderson Capital Advisors, OFI SteelPath, Goldman Sachs Asset Management, and Alps Advisors are the top five institutional holders in DCP. Advisory Research is the largest institutional holder in DCP Midstream, holding 6.3% of the outstanding shares in DCP on February 23, 2017.

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