Energy Transfer (NYSE:ET) Trading Down 1% - Here's Why

Key Points

• Energy Transfer LP shares decreased by 1% to $17.32 amid significantly lower trading volume, reflecting a decline of 81% from its average session volume.
• Analysts have a positive outlook on Energy Transfer, with a consensus target price of $22.75 and most analysts giving the stock a "buy" rating.
• The company recently increased its dividend to $0.33 per share, translating to a dividend yield of 7.6%, which was a positive move compared to its previous dividend payout.

Energy Transfer LP (NYSE:ET - Get Free Report) shares were down 1% during mid-day trading on Thursday . The stock traded as low as $17.28 and last traded at $17.32. Approximately 2,939,151 shares traded hands during trading, a decline of 81% from the average daily volume of 15,562,027 shares. The stock had previously closed at $17.49.

Analyst Ratings Changes

Several equities analysts have issued reports on ET shares. Cowen started coverage on shares of Energy Transfer in a research note on Monday, July 7th. They set a "buy" rating on the stock. JPMorgan Chase & Co. lowered their target price on shares of Energy Transfer from $25.00 to $23.00 and set an "overweight" rating on the stock in a research note on Monday, May 19th. Mizuho upped their target price on shares of Energy Transfer from $22.00 to $23.00 and gave the company an "outperform" rating in a research note on Tuesday, May 20th. Wells Fargo & Company restated an "overweight" rating and set a $23.00 target price (up previously from $21.00) on shares of Energy Transfer in a research note on Tuesday. Finally, TD Cowen assumed coverage on shares of Energy Transfer in a research note on Monday, July 7th. They set a "buy" rating and a $22.00 target price on the stock. One equities research analyst has rated the stock with a hold rating and twelve have given a buy rating to the company. According to MarketBeat.com, Energy Transfer currently has a consensus rating of "Moderate Buy" and a consensus target price of $22.75.

Energy Transfer Stock Down 0.7%

The company's fifty day moving average is $17.75 and its 200-day moving average is $18.01. The company has a market capitalization of $59.21 billion, a PE ratio of 13.37, a price-to-earnings-growth ratio of 0.90 and a beta of 0.83. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.92 and a current ratio of 1.15.

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, hitting the consensus estimate of $0.32. The company had revenue of $19.24 billion during the quarter, compared to analyst estimates of $24.07 billion. Energy Transfer had a net margin of 5.80% and a return on equity of 11.08%. The firm's quarterly revenue was down 7.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.35 EPS. As a group, analysts predict that Energy Transfer LP will post 1.46 EPS for the current fiscal year.

Energy Transfer Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 19th. Investors of record on Friday, August 8th will be issued a $0.33 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.32 annualized dividend and a yield of 7.7%. This is a positive change from Energy Transfer's previous quarterly dividend of $0.33. Energy Transfer's payout ratio is currently 102.33%.

Insider Transactions at Energy Transfer

In other Energy Transfer news, Director James Richard Perry sold 1,369 shares of the stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $18.48, for a total transaction of $25,299.12. Following the completion of the sale, the director directly 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 sale was disclosed in a filing with the SEC, which is available through the SEC website. 3.28% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Energy Transfer

A number of institutional investors have recently added to or reduced their stakes in the stock. Capital A Wealth Management LLC bought a new position in shares of Energy Transfer during the 4th quarter valued at approximately $26,000. Fourth Dimension Wealth LLC purchased a new stake in Energy Transfer in the fourth quarter worth $29,000. Ryan Investment Management Inc. purchased a new stake in Energy Transfer in the second quarter worth $31,000. Vision Financial Markets LLC bought a new stake in shares of Energy Transfer in the first quarter valued at about $33,000. Finally, CNB Bank raised its holdings in shares of Energy Transfer by 111.1% in the second quarter. CNB Bank now owns 1,900 shares of the pipeline company's stock valued at $34,000 after acquiring 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.