Insider Activity Report: Plains GP Holdings LP (PAGP)

Willie Chaing, CEO of Plains GP Holdings LP (PAGP), recently bought 62,000 shares. The buy increased his stake by 20 percent and came to a total cost of just over $1,000,000.

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  • Chaing was the last buyer of shares with a 75,000 pickup back in May. That also totaled about $1,000,000, and increased his position by 31 percent. A company director bought 1,000 share last August as well. Otherwise, there has been no other insider activity over the last two years.

    All told, company insiders own 2.6 percent of shares.

    The oil and gas pipeline company is having a banner year, with shares up nearly 50 percent. That’s in spite of an overall drop in revenues – a trend that may reverse if energy prices continue to stay at their current levels.

    Action to take: Shares trade at about 15 times earnings, about an average value for the company.

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  • As a pipeline operation, the company is structured to pay out a high dividend. At current prices, PAGP yields 6.6 percent. Just note that as a limited partnership (LP), there will be an additional tax form.

    For traders, shares are in a strong uptrend that looks likely to continue. The February 2024 $17 calls, last going for about $0.40, could see mid-to-high double-digit returns in the coming months should the trend continue.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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