The Reason For Today’s -1.96% Weakness in Shell Midstream Partners, L.P. (SHLX) Shares

Shell Midstream Partners, L.P. (NYSE:SHLX) is among the top losers of the stock market today, sinking -1.96% or (-0.4 points) to $20.05 from its previous close of $20.45. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 239400 contracts so far this session. SHLX shares had a relatively better volume day versus average trading capacity of 825.1 thousand shares, but with a 0.12 billion float and a -1.54% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SHLX stock indicates that the average analyst price target is $20.82 per share. This means the stock has a potential increase of 3.84% from where the SHLX share price has been trading recently.

During the recent trading session for Shell Midstream Partners, L.P. (NYSE:SHLX), the company witnessed their stock drop by $-0.27 over a week and tumble down $-2.25 from the price 20 days ago. When compared to their established 52-week high of $22.7, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 01/15/20. The recent low of $17.56 stood for a -11.67% since 02/28/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.13 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Shell Midstream Partners, L.P., the two-week RSI stands at 42.73. This figure suggests that SHLX stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current SHLX readings is similarly very revealing as it has a stochastic reading of 41.39% at this stage. This figure means that SHLX share price today is being neutral.

Technical chart claims that Shell Midstream Partners, L.P. (SHLX) would settle between $20.62/share to $20.79/share level. However, if the stock price goes below the $20.26 mark, then the market for Shell Midstream Partners, L.P. becomes much weaker. If that happens, the stock price might even plunge as low as $20.07 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.02. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Wells Fargo lowered their recommendation on shares of SHLX from Equal Weight to Underweight in their opinion released on January 07. JP Morgan analysts have lowered their rating of Shell Midstream Partners, L.P. (NYSE:SHLX) stock from Neutral to Underweight in a separate flash note issued to investors on August 20. Analysts at Mizuho lowered the stock to a Underperform call from its previous Neutral recommendation, in a research note that dated back to July 17.

SHLX equity has an average rating of 3, with the figure leaning towards a bullish end. 11 analysts who tracked the company were contacted by Reuters. Amongst them, 3 rated the stock as a hold while the remaining 8 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 3 analysts rated Shell Midstream Partners, L.P. (NYSE:SHLX) as a buy or a strong buy while 5 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, SHLX stock price is currently trading at 11.91X forward 12-month Consensus EPS estimates, and its P/E ratio is 11.6 while for the average stock in the same group, the multiple is 19.3. Shell Midstream Partners, L.P. current P/B ratio of 0 means it is trading at a discount against its industry’s 2.

Shell Midstream Partners, L.P. (SHLX)’s current-quarter revenues are projected to climb by nearly -14.4% to hit $121790, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -4.7% from $524700 to a noteworthy $500060. At the other end of the current quarter income statement, Shell Midstream Partners, L.P. is expected to see its adjusted earnings surge by roughly -11.1% to hit $0.4 per share. For the fiscal year, SHLX’s earnings are projected to climb by roughly 14.2% to hit $1.69 per share.