Energy Transfer (NYSE:ET) Stock Price Down 1.9% - Should You Sell?

Key Points

• Energy Transfer's stock price decreased by 1.9% during mid-day trading, closing at $16.30, which is lower than its previous close of $16.62.
• Analysts have a generally positive outlook on Energy Transfer, with fourteen rating it as a Buy and a consensus target price of $22.50.
• The company recently declared a quarterly dividend of $0.33 per share, equating to an annual yield of 8.1%, which marks an increase from its prior dividend.

Energy Transfer LP (NYSE:ET - Get Free Report)'s share price dropped 1.9% during mid-day trading on Friday . The stock traded as low as $16.26 and last traded at $16.30. Approximately 21,370,255 shares traded hands during mid-day trading, an increase of 43% from the average daily volume of 14,945,587 shares. The stock had previously closed at $16.62.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ET. TD Cowen began coverage on shares of Energy Transfer in a report on Monday, July 7th. They set a "buy" rating and a $22.00 price objective for the company. Weiss Ratings restated a "buy (b)" rating on shares of Energy Transfer in a research report on Wednesday. Wells Fargo & Company reissued an "overweight" rating and issued a $23.00 price objective (up from $21.00) on shares of Energy Transfer in a research note on Tuesday, August 12th. Morgan Stanley dropped their price target on Energy Transfer from $24.00 to $23.00 and set an "overweight" rating for the company in a research report on Tuesday, August 26th. Finally, Cowen assumed coverage on Energy Transfer in a report on Monday, July 7th. They issued a "buy" rating for the company. Fourteen research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $22.50.

Energy Transfer Stock Performance

The firm's 50 day moving average is $17.37 and its 200 day moving average is $17.49. The stock has a market cap of $55.95 billion, a P/E ratio of 12.64, a price-to-earnings-growth ratio of 0.98 and a beta of 0.78. 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 posted its quarterly earnings data on Wednesday, August 6th. The pipeline company reported $0.32 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.32. Energy Transfer had a net margin of 5.80% and a return on equity of 11.08%. The firm had revenue of $19.24 billion for the quarter, compared to the consensus estimate of $24.07 billion. During the same quarter in the prior year, the company posted $0.35 earnings per share. The company's revenue for the quarter was down 7.2% compared to the same quarter last year. Analysts anticipate that Energy Transfer LP will post 1.46 EPS for the current year.

Energy Transfer Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 19th. Shareholders of record on Friday, August 8th were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.32 annualized dividend and a yield of 8.1%. This is an increase from Energy Transfer's previous quarterly dividend of $0.33. Energy Transfer's payout ratio is 102.33%.

Insider Activity at Energy Transfer

In other news, Director Kelcy L. Warren acquired 1,350,000 shares of the company's stock in a transaction dated Wednesday, August 20th. The shares were acquired at an average price of $17.36 per share, with a total value of $23,436,000.00. Following the purchase, the director directly owned 69,178,477 shares of the company's stock, valued at $1,200,938,360.72. This trade represents a 1.99% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. 3.28% of the stock is owned by insiders.

Hedge Funds Weigh In On Energy Transfer

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Chelsea Counsel Co. boosted its position in shares of Energy Transfer by 370.3% during the 2nd quarter. Chelsea Counsel Co. now owns 94,050 shares of the pipeline company's stock valued at $1,705,000 after acquiring an additional 74,050 shares during the last quarter. Prevail Innovative Wealth Advisors LLC lifted its holdings in Energy Transfer by 316.9% in the first quarter. Prevail Innovative Wealth Advisors LLC now owns 117,312 shares of the pipeline company's stock valued at $2,181,000 after acquiring an additional 89,173 shares during the last quarter. Highland Capital Management LLC acquired a new position in shares of Energy Transfer in the 2nd quarter valued at $930,000. Northern Trust Corp lifted its stake in shares of Energy Transfer by 223.5% in the 1st quarter. Northern Trust Corp now owns 1,069,534 shares of the pipeline company's stock valued at $19,883,000 after purchasing an additional 738,885 shares during the last quarter. Finally, Appaloosa LP lifted its position in Energy Transfer by 0.9% in the first quarter. Appaloosa LP now owns 4,957,235 shares of the pipeline company's stock valued at $92,155,000 after buying an additional 42,500 shares during the last quarter. Institutional investors and hedge funds own 38.22% of the company's stock.

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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