Energy Transfer (NYSE:ET) Trading 1.9% Higher After Dividend Announcement

Key Points

• Shares rose about 1.9% after Energy Transfer raised its quarterly distribution to $0.3375 per share (annualized $1.35), implying a roughly 7.0% yield; the ex-dividend/record date is May 8 and payment is May 20, but the payout ratio is a high 110.74%.
• Trading volume jumped ~48% to 23.73 million shares, and analysts hold a consensus "Moderate Buy" rating with an average price target of $21.60.
• Recent results were mixed: Q1 EPS missed at $0.25 (vs. $0.34 est.) while revenue beat at $25.32 billion, up 29.6% year-over-year.

Energy Transfer LP (NYSE:ET - Get Free Report)'s stock price traded up 1.9% during mid-day trading on Tuesday following a dividend announcement from the company. The stock traded as high as $19.53 and last traded at $19.4150. 23,730,082 shares were traded during trading, an increase of 48% from the average session volume of 15,983,659 shares. The stock had previously closed at $19.05.The newly announced dividend which will be paid on Wednesday, May 20th. Shareholders of record on Friday, May 8th will be paid a dividend of $0.3375 per share. The ex-dividend date of this dividend is Friday, May 8th. This is a positive change from Energy Transfer's previous quarterly dividend of $0.34. This represents a $1.35 annualized dividend and a yield of 7.0%. Energy Transfer's payout ratio is presently 110.74%.

Analysts Set New Price Targets

A number of research firms have recently commented on ET. Barclays reissued an "overweight" rating and issued a $22.00 target price (down from $25.00) on shares of Energy Transfer in a report on Monday, January 12th. Morgan Stanley upped their price objective on shares of Energy Transfer from $19.00 to $21.00 and gave the stock an "equal weight" rating in a research report on Tuesday, March 10th. Wells Fargo & Company increased their price objective on shares of Energy Transfer from $23.00 to $25.00 and gave the company an "overweight" rating in a research note on Friday, March 13th. Scotiabank restated an "outperform" rating on shares of Energy Transfer in a research report on Friday, January 16th. Finally, Truist Financial initiated coverage on shares of Energy Transfer in a research note on Tuesday, March 24th. They set a "buy" rating and a $23.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $21.60.

Energy Transfer Stock Up 1.9%

The stock has a market capitalization of $66.79 billion, a price-to-earnings ratio of 16.05, a price-to-earnings-growth ratio of 1.05 and a beta of 0.62. The company has a quick ratio of 0.90, a current ratio of 1.22 and a debt-to-equity ratio of 1.50. The stock has a 50 day moving average price of $18.93 and a 200 day moving average price of $17.68.

Energy Transfer (NYSE:ET - Get Free Report) last released its quarterly earnings data on Tuesday, February 17th. The pipeline company reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.09). The firm had revenue of $25.32 billion during the quarter, compared to analyst estimates of $23.56 billion. Energy Transfer had a net margin of 5.11% and a return on equity of 10.17%. The business's quarterly revenue was up 29.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.29 EPS. As a group, analysts forecast that Energy Transfer LP will post 1.5 EPS for the current year.

Key Headlines Impacting Energy Transfer

Here are the key news stories impacting Energy Transfer this week:

• Positive Sentiment: Company raised its quarterly cash distribution to $0.3375 per share (annualized $1.35), a ~0.7% increase from the prior quarter, implying a roughly 7.1% yield; ex-dividend/record date is May 8 and payment is May 20 — a clear near-term catalyst for income-seeking buyers. Energy Transfer Announces Increase in Quarterly Cash Distribution
• Positive Sentiment: Retail and Zacks readers are actively searching ET, signaling heightened interest and flows into the name that can boost near-term demand. Increased searches often accompany volume spikes and price moves. Investors Heavily Search Energy Transfer LP (ET): Here is What You Need to Know
• Positive Sentiment: Longer-term bullish narratives for ET (dividend-focused buy-and-hold thesis) are being promoted in investor media, reinforcing the stock’s appeal to income investors and supporting multiple-buy narratives. This helps explain interest beyond a single-day move. Energy Transfer in 10 Years: What the Long-Term Bull Case Actually Looks Like
• Positive Sentiment: ET appears in broader “pipeline stocks to buy” lists that promote its income profile and defensive characteristics, which can attract new buyers from income-focused pools of capital. 3 Pipeline Stocks to Buy in April
• Neutral Sentiment: Recent valuation write-ups note ET’s strong multi-year returns but raise questions about how current price lines up with fundamentals — useful context for longer-term investors but less of an immediate trade catalyst. Assessing Energy Transfer (ET) Valuation After Strong Multi Year Return Performance
• Neutral Sentiment: Broader energy/renewables headlines (e.g., First Solar earnings preview) can shift sector flows but are not specific to ET; treat these as background rather than direct drivers. First Solar to Release Q1 Earnings: What's in Store for the Stock?

Hedge Funds Weigh In On Energy Transfer

A number of hedge funds have recently modified their holdings of the business. Basepoint Wealth LLC bought a new position in Energy Transfer during the 4th quarter worth $25,000. Gables Capital Management Inc. grew its position in shares of Energy Transfer by 60.0% in the 4th quarter. Gables Capital Management Inc. now owns 1,600 shares of the pipeline company's stock valued at $26,000 after buying an additional 600 shares during the last quarter. Sarver Vrooman Wealth Advisors bought a new stake in shares of Energy Transfer in the 4th quarter valued at about $32,000. Financial Life Planners acquired a new stake in shares of Energy Transfer in the third quarter valued at about $34,000. Finally, Navalign LLC bought a new position in shares of Energy Transfer during the fourth quarter worth about $37,000. Institutional investors and hedge funds own 38.22% of the company's stock.

About Energy Transfer

Energy Transfer NYSE: ET is a Dallas-based midstream energy company that develops and operates infrastructure for the transportation, storage and processing of hydrocarbons. The company's operations focus on moving and storing natural gas, natural gas liquids (NGLs), crude oil and refined products through an integrated network of pipelines, terminals, storage facilities and processing plants. Energy Transfer provides core midstream services such as gathering, compression, fractionation, processing, and bulk transportation to support production and downstream supply chains.

Its asset base spans an extensive network across the United States, connecting producing regions, processing centers, petrochemical hubs and coastal and inland markets.

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