The Case for and Against Boardwalk Pipeline Partners, LP (BWP)

Boardwalk Pipeline Partners, LP (BWP) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Pipelines. The stock has been active on the tape, currently trading at $15.22, up from yesterday’s close by 0.73%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Boardwalk Pipeline Partners, LP (BWP) currently trades with a market capitalization of $3.81 Billion.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For BWP, the company currently has $77.3 Million of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $9.8 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.27 on a per share basis this quarter. Perhaps, that suggests something about why 93.73% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Boardwalk Pipeline Partners, LP recorded a 52-week high of $18.95. It is now trading 3.73% off that level. The stock is trading $15.21 its 50-day moving average by -0.0099999999999998%. The stock carved out a 52-week low down at $14.40.

In recent action, Boardwalk Pipeline Partners, LP (BWP) has made a move of +2.49% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.45, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.80% with $250.05 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of BWP.

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