Energy Transfer (NYSE:ET) Earns Sector Outperform Rating from Analysts at Scotiabank

Key Points

• Scotiabank initiated coverage of Energy Transfer (NYSE:ET) with a "sector outperform" rating and a price target of $23.00, suggesting a potential upside of 29.76% from its current price.
• The company reported a net margin of 5.80% and $19.24 billion in revenue for the last quarter, which was below analysts' expectations.
• Insider activity includes Director Kelcy L. Warren purchasing 1,350,000 shares at an average price of $17.36, increasing his position in the company.

Stock analysts at Scotiabank began coverage on shares of Energy Transfer (NYSE:ET - Get Free Report) in a research note issued on Tuesday, MarketBeat reports. The firm set a "sector outperform" rating and a $23.00 price target on the pipeline company's stock. Scotiabank's price target would indicate a potential upside of 29.76% from the stock's current price.

Several other research firms have also recently weighed in on ET. Wells Fargo & Company restated an "overweight" rating and set a $23.00 price target (up from $21.00) on shares of Energy Transfer in a report on Tuesday, August 12th. Cowen assumed coverage on Energy Transfer in a report on Monday, July 7th. They issued a "buy" rating on the stock. JPMorgan Chase & Co. reduced their target price on Energy Transfer from $25.00 to $23.00 and set an "overweight" rating on the stock in a report on Monday, May 19th. TD Cowen assumed coverage on Energy Transfer in a report on Monday, July 7th. They issued a "buy" rating and a $22.00 target price on the stock. Finally, Mizuho upped their target price on Energy Transfer from $22.00 to $23.00 and gave the company an "outperform" rating in a report on Tuesday, May 20th. Thirteen analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $22.54.

Energy Transfer Stock Up 0.4%

ET stock opened at $17.73 on Tuesday. Energy Transfer has a 52 week low of $14.60 and a 52 week high of $21.45. The company has a quick ratio of 0.92, a current ratio of 1.15 and a debt-to-equity ratio of 1.44. The business has a 50-day simple moving average of $17.64 and a 200 day simple moving average of $17.78. The company has a market cap of $60.84 billion, a PE ratio of 13.74, a price-to-earnings-growth ratio of 0.93 and a beta of 0.85.

Energy Transfer (NYSE:ET - Get Free Report) last released its earnings results on Wednesday, August 6th. The pipeline company reported $0.32 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.32. Energy Transfer had a return on equity of 11.08% and a net margin of 5.80%.The firm had revenue of $19.24 billion for the quarter, compared to analysts' expectations of $24.07 billion. During the same quarter in the previous year, the business posted $0.35 earnings per share. The business's revenue for the quarter was down 7.2% on a year-over-year basis. Sell-side analysts anticipate that Energy Transfer will post 1.46 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Kelcy L. Warren purchased 1,350,000 shares of the stock in a transaction that occurred on Wednesday, August 20th. The stock was acquired at an average cost of $17.36 per share, with a total value of $23,436,000.00. Following the transaction, the director owned 69,178,477 shares of the company's stock, valued at $1,200,938,360.72. This represents a 1.99% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director James Richard Perry sold 1,369 shares of the company's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $18.48, for a total value of $25,299.12. Following the completion of the transaction, the director owned 24,523 shares of the company's stock, valued at $453,185.04. This trade represents a 5.29% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 3.28% of the company's stock.

Hedge Funds Weigh In On Energy Transfer

Large investors have recently modified their holdings of the company. Capital A Wealth Management LLC bought a new position in Energy Transfer during the 4th quarter worth approximately $26,000. Fourth Dimension Wealth LLC bought a new stake in shares of Energy Transfer in the 4th quarter worth approximately $29,000. Ryan Investment Management Inc. bought a new stake in shares of Energy Transfer in the 2nd quarter worth approximately $31,000. Vision Financial Markets LLC bought a new stake in shares of Energy Transfer in the 1st quarter worth approximately $33,000. Finally, CNB Bank boosted its position in shares of Energy Transfer by 111.1% during the second quarter. CNB Bank now owns 1,900 shares of the pipeline company's stock valued at $34,000 after purchasing an additional 1,000 shares in the last quarter. 38.22% of the stock is owned by hedge funds and other institutional investors.

About Energy Transfer

Energy Transfer LP provides energy-related services. The company owns and operates natural gas transportation pipeline, and natural gas storage facilities in Texas and Oklahoma; and approximately 20,090 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users.

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