Energy Transfer (NYSE:ET) Stock Price Up 1.6% After Insider Buying Activity

Key Points

• The stock price of Energy Transfer (NYSE:ET) increased by 1.6% following significant insider buying by Director Kelcy L. Warren, who acquired 1,350,000 shares at an average price of $17.36.
• Recent analyst ratings show a consensus of 12 buy ratings and 1 hold rating, with price targets ranging from $22.00 to $23.00, reflecting a positive outlook for the company.
• Energy Transfer recently declared a quarterly dividend increase, paying a dividend of $0.33 per share, which maintains a high annualized yield of 7.5%.

Energy Transfer LP (NYSE:ET - Get Free Report) rose 1.6% during mid-day trading on Friday following insider buying activity. The company traded as high as $17.72 and last traded at $17.75. Approximately 3,812,537 shares changed hands during trading, a decline of 75% from the average daily volume of 15,468,945 shares. The stock had previously closed at $17.46.

Specifically, Director Kelcy L. Warren acquired 1,350,000 shares of the stock in a transaction that occurred on Wednesday, August 20th. The shares were purchased at an average cost of $17.36 per share, for a total transaction of $23,436,000.00. Following the transaction, the director directly owned 69,178,477 shares in the company, valued at approximately $1,200,938,360.72. This represents a 1.99% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Kelcy L. Warren acquired 650,000 shares of the stock in a transaction that occurred on Tuesday, August 19th. The stock was purchased at an average price of $17.30 per share, for a total transaction of $11,245,000.00. Following the completion of the transaction, the director owned 67,828,477 shares in the company, valued at $1,173,432,652.10. The trade was a 0.97% increase in their ownership of the stock. The disclosure for this purchase can be found here.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. TD Cowen assumed coverage on shares of Energy Transfer in a research report on Monday, July 7th. They issued a "buy" rating and a $22.00 price objective on the stock. Cowen assumed coverage on shares of Energy Transfer in a research report on Monday, July 7th. They issued a "buy" rating on the stock. Mizuho lifted their price objective on shares of Energy Transfer from $22.00 to $23.00 and gave the company an "outperform" rating in a research report on Tuesday, May 20th. JPMorgan Chase & Co. lowered their price objective on shares of Energy Transfer from $25.00 to $23.00 and set an "overweight" rating on the stock in a research report on Monday, May 19th. Finally, Wells Fargo & Company reiterated an "overweight" rating and issued a $23.00 price objective (up from $21.00) on shares of Energy Transfer in a research report on Tuesday, August 12th. Twelve equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $22.75.

Energy Transfer Stock Up 1.1%

The company has a market capitalization of $60.60 billion, a PE ratio of 13.69, a price-to-earnings-growth ratio of 0.90 and a beta of 0.83. The firm's 50-day simple moving average is $17.69 and its 200 day simple moving average is $17.93. 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 quarterly 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 business had revenue of $19.24 billion during the quarter, compared to the consensus estimate of $24.07 billion. Energy Transfer had a return on equity of 11.08% and a net margin of 5.80%.The business's revenue was down 7.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.35 EPS. As a group, equities research analysts forecast that Energy Transfer LP will post 1.46 earnings per share for the current year.

Energy Transfer Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 19th. Stockholders of record on Friday, August 8th were paid a dividend of $0.33 per share. This is a boost from Energy Transfer's previous quarterly dividend of $0.33. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.32 annualized dividend and a dividend yield of 7.5%. Energy Transfer's dividend payout ratio is presently 102.33%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ET. Kingstone Capital Partners Texas LLC acquired a new position in shares of Energy Transfer during the 2nd quarter worth $168,917,000. Alps Advisors Inc. raised its stake in shares of Energy Transfer by 12.9% during the 1st quarter. Alps Advisors Inc. now owns 75,353,994 shares of the pipeline company's stock worth $1,400,831,000 after buying an additional 8,613,645 shares during the last quarter. Commerce Bank acquired a new position in shares of Energy Transfer during the 1st quarter worth $92,607,000. Zurich Insurance Group Ltd FI acquired a new position in shares of Energy Transfer during the 4th quarter worth $79,113,000. Finally, Hsbc Holdings PLC acquired a new position in shares of Energy Transfer during the 4th quarter worth $50,166,000. 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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