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TC PipeLines: Short Interest and Analysts’ Recommendations

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Short interest

The short interest in TC PipeLines (TCP) fell 22.7% to ~1.1 million shares on March 15. A fall in the short interest indicates that fewer investors expect the price of the stock to fall in the near term compared to the analysts that expected a fall at the end of February. Based on TC PipeLines’ average daily trading volume, it will take around four days to cover all of the open short positions in the stock. The short interest in TC PipeLines as a percentage of its floating shares is 2.0%.

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Analysts’ recommendations

On March 19, Wells Fargo upgraded TC PipeLines from “market perform” to “outperform.” Wells Fargo has given TC PipeLines a target price of $38. On March 18, J.P. Morgan raised its target price on the stock from $35 to $38.

Among the ten Reuters-surveyed analysts covering TC PipeLines, one recommended a “strong buy,” five recommended a “hold,” three recommended a “sell,” and one recommended a “strong sell.” TC PipeLines’ mean target price is $33.3. Currently, TC PipeLines is trading ~11% below its mean target price. TC PipeLines forms ~2.1% of the Alerian MLP ETF (AMLP).

In comparison, 55% of the Reuters-surveyed analysts rated TransCanada (TRP) as a “buy” or “strong buy.”

Rising natural gas production in the United States is benefiting pipeline stocks including TC PipeLines. To learn more, read Rising Gas Production Should Benefit Midstream Stocks.

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