Energy Transfer (NYSE:ET) Issues Earnings Results

Key Points

• Energy Transfer reported quarterly earnings of $0.28 per share, falling short of the analysts' expectations of $0.34, with revenues also missing targets at $19.95 billion against a forecast of $21.84 billion.
• The company announced an increase in its quarterly dividend to $0.3325, resulting in an annualized dividend yield of 7.9%, up from the previous $0.33.
• Director Kelcy L. Warren purchased 1.35 million shares of Energy Transfer at $17.36 each, indicating confidence in the company with his total stake now valued at approximately $1.2 billion.

Energy Transfer (NYSE:ET - Get Free Report) issued its quarterly earnings data on Wednesday. The pipeline company reported $0.28 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.34 by ($0.06), FiscalAI reports. Energy Transfer had a net margin of 5.80% and a return on equity of 11.08%. The company had revenue of $19.95 billion for the quarter, compared to analysts' expectations of $21.84 billion.

Energy Transfer Stock Up 2.4%

Energy Transfer stock traded up $0.39 during trading hours on Wednesday, hitting $16.94. The stock had a trading volume of 16,535,923 shares, compared to its average volume of 14,845,146. The stock's 50-day moving average price is $17.08 and its 200-day moving average price is $17.42. The stock has a market capitalization of $58.15 billion, a P/E ratio of 13.13, a price-to-earnings-growth ratio of 1.01 and a beta of 0.76. Energy Transfer has a 12-month low of $14.60 and a 12-month 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.

Energy Transfer Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 19th. Shareholders of record on Friday, November 7th will be issued a $0.3325 dividend. This represents a $1.33 annualized dividend and a yield of 7.9%. This is a boost from Energy Transfer's previous quarterly dividend of $0.33. The ex-dividend date of this dividend is Friday, November 7th. Energy Transfer's dividend payout ratio is presently 103.10%.

Insider Buying and Selling at Energy Transfer

In other news, Director Kelcy L. Warren acquired 1,350,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 20th. The stock was bought at an average cost of $17.36 per share, for a total transaction of $23,436,000.00. Following the acquisition, the director directly owned 69,178,477 shares in the company, valued at approximately $1,200,938,360.72. The trade was a 1.99% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. 3.28% of the stock is owned by company insiders.

Institutional Investors Weigh In On Energy Transfer

A number of hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its holdings in Energy Transfer by 93.4% in the fourth quarter. Brighton Jones LLC now owns 24,530 shares of the pipeline company's stock valued at $481,000 after acquiring an additional 11,844 shares during the period. Lazard Asset Management LLC grew its holdings in Energy Transfer by 29.5% during the second quarter. Lazard Asset Management LLC now owns 16,275 shares of the pipeline company's stock valued at $295,000 after purchasing an additional 3,703 shares during the period. Hilton Capital Management LLC grew its stake in shares of Energy Transfer by 3.1% during the 2nd quarter. Hilton Capital Management LLC now owns 33,755 shares of the pipeline company's stock valued at $612,000 after acquiring an additional 1,000 shares during the period. Ausdal Financial Partners Inc. boosted its position in shares of Energy Transfer by 41.0% in the second quarter. Ausdal Financial Partners Inc. now owns 51,816 shares of the pipeline company's stock worth $939,000 after purchasing an additional 15,065 shares during the period. Finally, Main Street Financial Solutions LLC boosted its holdings in Energy Transfer by 11.9% in the 2nd quarter. Main Street Financial Solutions LLC now owns 14,540 shares of the pipeline company's stock worth $264,000 after buying an additional 1,552 shares during the period. 38.22% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

ET has been the topic of several research analyst reports. Scotiabank initiated coverage on shares of Energy Transfer in a research report on Tuesday, September 2nd. They set a "sector outperform" rating and a $23.00 price target on the stock. UBS Group reiterated a "buy" rating and set a $22.00 target price on shares of Energy Transfer in a report on Wednesday, October 15th. Jefferies Financial Group set a $17.00 price target on Energy Transfer and gave the company a "hold" rating in a research report on Tuesday, October 28th. Barclays reaffirmed an "overweight" rating and issued a $25.00 price target on shares of Energy Transfer in a research note on Wednesday, October 15th. Finally, Wells Fargo & Company reissued an "overweight" rating and set a $23.00 price objective (up previously from $21.00) on shares of Energy Transfer in a research report on Tuesday, August 12th. Thirteen analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $22.23.

Energy Transfer Company Profile

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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