GLP

Global Partners LP ($GLP) Sees 11 Months of Continuous Insider Buying, 5.7% Dividend Yield Attracts Income Investors

05/29/2025 20:33

Global GP LLC, the major equity holding entity of Global Partners LP ($GLP), has been consistently purchasing company shares for nearly a year from June 2024 through May 2025. As recently as May 27, the entity made an additional $5 million stock purchase, demonstrating strong insider confidence in the company. According to SEC filings, Global GP LLC has made over 45 separate purchases totaling more than 200,000 shares worth over $10 million across the past 11 months. While these transactions fulfill obligations under the company's Long-Term Incentive Plan (LTIP), the sustained buying pattern suggests management views the current share price as undervalued. Notably, the purchases continued even during periods of stock price decline. Global Partners LP operates as an integrated energy company managing 54 liquid energy terminals across the U.S. East Coast and Gulf States. With roots dating back to the 1920s, the company operates through three segments: wholesale operations involving purchasing, selling, blending, storing, and transporting refined petroleum products; gasoline distribution and station operations; and commercial fuel sales to public sector and industrial customers. The stock began 2024 around $45 and declined to the high $30s during the summer months before recovering strongly in the fall, reaching near $55 by year-end. This year has seen continued volatility, but shares recently trade around $52, representing approximately 16% gains over the past year. The five-year cumulative return of 703% significantly outperforms the S&P 500. Financially, Global Partners LP generates $17.6 billion in annual revenue with stable cash flows. While profit margins are thin at 0.65% - typical for the energy logistics sector - the company maintains steady earnings supported by its essential infrastructure assets. The 5.68% dividend yield is particularly attractive to income-focused investors. The debt-to-equity ratio of 308% appears high but is characteristic of capital-intensive midstream energy operations. The company manages its obligations through consistent operating cash flows while maintaining regular dividend payments to shareholders. The U.S. energy market has shown relative stability recently amid easing trade tensions. While oil price concerns emerged in late May 2025 due to OPEC+ production decisions and Venezuelan crude export restrictions, these developments could potentially benefit energy logistics companies through improved margins. Global Partners LP is expanding into renewable fuels while implementing digital solutions to enhance operational efficiency. The company's strategy of custom fuel blending services and convenience store operations provides revenue diversification benefits. The persistent insider buying extends beyond mere LTIP compliance, signaling management's confidence in the company's long-term value at current price levels. This suggests leadership believes liquid fuel logistics will remain essential even during the energy transition period. However, COO Mark Romaine's March 2025 sale of approximately $790,000 in shares warrants attention, though this appears related to phantom unit vesting under standard executive compensation arrangements. Analysts view Global Partners LP's ownership of critical East Coast energy infrastructure as providing stable cash flow sustainability throughout the energy transition. The combination of high dividend yields and sustained insider investment confidence appeals to income investors seeking exposure to essential energy logistics infrastructure.

You can receive notifications when news is published.