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Institutional Activity in Magellan Midstream Partners in Q1 2018

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Recent institutional activity in MMP

The total number of institutional holders in Magellan Midstream Partners (MMP) had fallen to 695 by the end of the first quarter compared to 713 in the previous quarter. However, the percentage of its shares held by institutional investors increased to 64.4% from 61.6%.

Brookfield Investment Management was the largest buyer in the partnership during the first quarter. It bought 2.1 million shares of MMP.

Among the top institutional holders, 2.3 million positions were added. Investor bullishness toward MMP can be attributed to its stable earnings and distribution growth. For a review of MMP’s first-quarter earnings, read What Drove Magellan Midstream Partners’ Earnings in 1Q18?

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Top five holders

Alps Advisors, Tortoise Capital Advisors, Goldman Sachs Asset Management, OppenheimerFunds, and OFI SteelPath are the top five institutional holders in MMP. Alps Advisors continues to be the top holder in MMP despite unloading 0.16 million positions in the first quarter. It currently holds 6.5% in MMP.

Analysts’ recommendations

A total of 57.9% of analysts have rated MMP as a “buy,” 31.6% have rated it as a “hold,” and the remaining 10.5% have rated it as a “sell” as of May 17. MMP’s peers Buckeye Partners (BPL) and NuStar Energy (NS) have “hold” ratings from 75.0% and 90.0% of analysts surveyed by Reuters, respectively. MMP’s average target price of $73.8 implies a ~6% upside potential from its current price level.

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