Plains All American Pipeline Shares Slide 20.3% Below Kramer's Purchase Price

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There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on December 14, Plains All American Pipeline, L.P.'s Exec. Vice President, Phil D. Kramer, invested $474,192.00 into 25,000 shares of PAA, for a cost per share of $18.97. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Wednesday, bargain hunters could buy shares of Plains All American Pipeline, L.P. (Symbol: PAA) and achieve a cost basis 20.3% cheaper than Kramer, with shares changing hands as low as $15.12 per share. It should be noted that Kramer has collected $0.70/share in dividends since the time of their purchase, so they are currently down 16.6% on their purchase from a total return basis. Plains All American Pipeline, L.P. shares are currently trading down about 0.8% on the day. The chart below shows the one year performance of PAA shares, versus its 200 day moving average:

Plains All American Pipeline, L.P. Chart

Looking at the chart above, PAA's low point in its 52 week range is $14.82 per share, with $52.70 as the 52 week high point - that compares with a last trade of $15.76. By comparison, below is a table showing the prices at which PAA insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
09/28/2015 John T. Raymond Director 25,000 $28.00 $700,000.00
12/14/2015 Phil D. Kramer Exec. Vice President 25,000 $18.97 $474,192.00

The current annualized dividend paid by Plains All American Pipeline, L.P. is $2.80/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 01/27/2016. Below is a long-term dividend history chart for PAA, which can be of good help in judging whether the most recent dividend with approx. 17.6% annualized yield is likely to continue.


According to the ETF Finder at ETF Channel, PAA makes up 6.04% of the MLP ETF (Symbol: MLPA) which is trading up by about 0.9% on the day Wednesday.

Click here to find out which 9 other energy stock bargains you can buy cheaper than insiders »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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