Energy Transfer LP (NYSE:ET) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts remain broadly positive: Energy Transfer has a “Moderate Buy” consensus from 15 analysts, including 12 buy and one strong-buy rating, with an average 12-month price target of $23.92.
• Quarterly results exceeded expectations: The pipeline company reported $0.59 in EPS versus the $0.38 consensus estimate, while revenue rose 78.4% year over year to $34.33 billion.
• Income investors continue to receive strong support: Energy Transfer’s quarterly distribution is $0.34, equating to a 6.5% annualized yield, and a director recently increased his holdings by purchasing more than $250,000 of shares.

Energy Transfer LP (NYSE:ET - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the fifteen analysts that are covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $23.9167.

Several research analysts have recently weighed in on ET shares. Jefferies Financial Group reaffirmed a "buy" rating on shares of Energy Transfer in a report on Wednesday, August 5th. Royal Bank Of Canada reissued an "outperform" rating and set a $23.00 price objective (up from $21.00) on shares of Energy Transfer in a research note on Tuesday, July 21st. Truist Financial boosted their target price on Energy Transfer from $23.00 to $25.00 and gave the stock a "buy" rating in a research report on Wednesday. Wall Street Zen upgraded Energy Transfer from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings raised Energy Transfer from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday.

Insider Buying and Selling at Energy Transfer

In related news, Director James Richard Perry bought 12,359 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were acquired at an average cost of $20.23 per share, with a total value of $250,022.57. Following the completion of the purchase, the director directly owned 208,046 shares of the company's stock, valued at $4,208,770.58. This trade represents a 6.32% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 3.28% of the company's stock.

Hedge Funds Weigh In On Energy Transfer

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Arrow Investment Advisors LLC lifted its holdings in shares of Energy Transfer by 4.9% during the 2nd quarter. Arrow Investment Advisors LLC now owns 10,866 shares of the pipeline company's stock worth $208,000 after acquiring an additional 505 shares during the last quarter. Argent Trust Co increased its stake in Energy Transfer by 2.1% in the second quarter. Argent Trust Co now owns 26,035 shares of the pipeline company's stock valued at $498,000 after acquiring an additional 529 shares during the last quarter. State of Wyoming raised its position in Energy Transfer by 2.5% during the second quarter. State of Wyoming now owns 22,822 shares of the pipeline company's stock valued at $436,000 after purchasing an additional 548 shares in the last quarter. Keybank National Association OH raised its position in Energy Transfer by 0.3% during the first quarter. Keybank National Association OH now owns 219,232 shares of the pipeline company's stock valued at $4,231,000 after purchasing an additional 556 shares in the last quarter. Finally, Mountain Capital Investment Advisors Inc. lifted its stake in Energy Transfer by 4.9% during the fourth quarter. Mountain Capital Investment Advisors Inc. now owns 12,007 shares of the pipeline company's stock worth $216,000 after purchasing an additional 560 shares during the last quarter. Hedge funds and other institutional investors own 38.22% of the company's stock.

Energy Transfer Stock Performance

Energy Transfer stock opened at $21.02 on Friday. The firm's 50 day simple moving average is $19.76 and its 200 day simple moving average is $19.32. The company has a current ratio of 1.16, a quick ratio of 0.94 and a debt-to-equity ratio of 1.45. The firm has a market capitalization of $72.39 billion, a PE ratio of 14.30, a price-to-earnings-growth ratio of 2.00 and a beta of 0.55. Energy Transfer has a 1-year low of $16.18 and a 1-year high of $21.11.

Energy Transfer (NYSE:ET - Get Free Report) last posted its earnings results on Tuesday, August 4th. The pipeline company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.21. The business had revenue of $34.33 billion for the quarter, compared to analysts' expectations of $27.71 billion. Energy Transfer had a net margin of 4.87% and a return on equity of 11.55%. The business's revenue for the quarter was up 78.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.32 EPS. As a group, analysts expect that Energy Transfer will post 1.63 earnings per share for the current fiscal year.

Energy Transfer Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Friday, August 7th will be given a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 6.5%. This is a positive change from Energy Transfer's previous quarterly dividend of $0.34. The ex-dividend date is Friday, August 7th. Energy Transfer's dividend payout ratio (DPR) is currently 92.52%.

Key Stories Impacting Energy Transfer

Here are the key news stories impacting Energy Transfer this week:

• Positive Sentiment: Income appeal remains a key support. An investor analysis argues that Energy Transfer’s distribution yield, now near 6.5%, remains attractive and that the payout appears dependable, reinforcing ET’s appeal as a high-income midstream investment. Energy Transfer’s Yield Just Climbed Near 6.5%. Here’s Why I’m Not Worried About the Payout.
• Positive Sentiment: AI-related power demand could create growth opportunities. Alpha Wealth Funds highlighted ET’s positioning to benefit from the expected surge in electricity consumption from artificial-intelligence infrastructure, potentially increasing demand for natural gas and related energy services. Energy Transfer Positions to Capitalize on the AI Power Surge
• Positive Sentiment: Analyst and insider signals are favorable. Truist Financial forecast strong potential price appreciation, while separate coverage said ET shares benefited from insider buying activity. These signals may strengthen investor confidence, although they do not guarantee future performance. Truist Financial Forecasts Strong Price Appreciation for Energy Transfer Stock Energy Transfer Stock Price Up on Insider Buying Activity
• Neutral Sentiment: Natural-gas prices moved higher. Warmer-weather forecasts helped lift natural-gas prices, which could improve industry sentiment. However, ET’s diversified, largely fee-based midstream model may limit the direct effect of commodity-price changes. Nat-Gas Prices Close Higher on Warm Forecasts
• Negative Sentiment: Zacks downgraded ET from “strong buy” to “hold.” The rating change is a modest headwind and may encourage some investors to take profits after the stock’s recent momentum. Zacks.com

About Energy Transfer

Energy Transfer NYSE: ET is a Dallas-based midstream energy company that develops and operates infrastructure for the transportation, storage and processing of hydrocarbons. The company's operations focus on moving and storing natural gas, natural gas liquids (NGLs), crude oil and refined products through an integrated network of pipelines, terminals, storage facilities and processing plants. Energy Transfer provides core midstream services such as gathering, compression, fractionation, processing, and bulk transportation to support production and downstream supply chains.

Its asset base spans an extensive network across the United States, connecting producing regions, processing centers, petrochemical hubs and coastal and inland markets.

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