Energy Transfer (NYSE:ET) Trading Down 1.4% - Time to Sell?

Key Points

• Energy Transfer's shares fell 1.4% to $16.67 on Thursday, with a trading volume increase of 12% compared to its average daily volume.
• Multiple research firms have a consensus rating of "Moderate Buy" on Energy Transfer, with price targets ranging from $22 to $25.
• The company recently declared a quarterly dividend of $0.33, yielding 7.9%, with a dividend payout ratio of 102.33%.

Energy Transfer LP (NYSE:ET - Get Free Report) shares were down 1.4% on Thursday . The company traded as low as $16.58 and last traded at $16.67. Approximately 16,681,732 shares were traded during mid-day trading, an increase of 12% from the average daily volume of 14,940,669 shares. The stock had previously closed at $16.90.

Wall Street Analyst Weigh In

Several research firms have issued reports on ET. TD Cowen began coverage on Energy Transfer in a report on Monday, July 7th. They issued a "buy" rating and a $22.00 price target on the stock. Barclays reaffirmed an "overweight" rating and issued a $25.00 price target on shares of Energy Transfer in a report on Wednesday. Morgan Stanley dropped their price target on Energy Transfer from $24.00 to $23.00 and set an "overweight" rating on the stock in a report on Tuesday, August 26th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Energy Transfer in a report on Wednesday, October 8th. Finally, Scotiabank began coverage on Energy Transfer in a report on Tuesday, September 2nd. They issued a "sector outperform" rating and a $23.00 price target on the stock. Fourteen research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Energy Transfer currently has a consensus rating of "Moderate Buy" and an average price target of $22.46.

Energy Transfer Stock Performance

The firm's 50 day simple moving average is $17.27 and its 200-day simple moving average is $17.42. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.92 and a current ratio of 1.15. The company has a market capitalization of $57.22 billion, a price-to-earnings ratio of 12.92, a P/E/G ratio of 0.97 and a beta of 0.78.

Energy Transfer (NYSE:ET - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The pipeline company reported $0.32 earnings per share for the quarter, hitting analysts' consensus estimates of $0.32. Energy Transfer had a net margin of 5.80% and a return on equity of 11.08%. The business had revenue of $19.24 billion for the quarter, compared to the consensus estimate of $24.07 billion. During the same period in the prior year, the business posted $0.35 earnings per share. Energy Transfer's revenue for the quarter was down 7.2% compared to the same quarter last year. Analysts expect 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. Stockholders of record on Friday, August 8th were paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend 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 was Friday, August 8th. Energy Transfer's dividend payout ratio (DPR) is currently 102.33%.

Insider Transactions at Energy Transfer

In other Energy Transfer news, Director Kelcy L. Warren bought 1,350,000 shares of the stock in a transaction on Wednesday, August 20th. The shares were purchased at an average cost of $17.36 per share, with a total value of $23,436,000.00. Following the completion of the transaction, the director directly owned 69,178,477 shares of the company's stock, valued at $1,200,938,360.72. This represents a 1.99% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 3.28% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC raised its holdings in Energy Transfer by 93.4% in the 4th quarter. Brighton Jones LLC now owns 24,530 shares of the pipeline company's stock worth $481,000 after acquiring an additional 11,844 shares during the period. GAMMA Investing LLC raised its stake in shares of Energy Transfer by 1,139.3% in the first quarter. GAMMA Investing LLC now owns 18,590 shares of the pipeline company's stock valued at $346,000 after acquiring an additional 17,090 shares during the last quarter. CX Institutional bought a new stake in shares of Energy Transfer during the first quarter worth $50,000. Wealth Enhancement Advisory Services LLC lifted its position in shares of Energy Transfer by 23.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 941,444 shares of the pipeline company's stock worth $17,501,000 after purchasing an additional 176,812 shares in the last quarter. Finally, Mission Wealth Management LP raised its position in shares of Energy Transfer by 1.8% during the first quarter. Mission Wealth Management LP now owns 52,981 shares of the pipeline company's stock worth $985,000 after acquiring an additional 953 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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