Energy Transfer (NYSE:ET) Stock Price Down 2.1% - Should You Sell?

Key Points

• Energy Transfer LP (NYSE:ET) saw its stock price decline by 2.1%, closing at $17.28 after trading as low as $17.33 during the day.
• Several analysts have revised their target prices for Energy Transfer, with a consensus price target of $22.54 and most ratings indicating a "Moderate Buy."
• The company announced a quarterly dividend of $0.33 per share, resulting in a 7.6% dividend yield, despite having a dividend payout ratio of 102.33%.

Energy Transfer LP (NYSE:ET - Get Free Report)'s share price traded down 2.1% during mid-day trading on Friday . The stock traded as low as $17.33 and last traded at $17.28. 3,487,284 shares were traded during trading, a decline of 77% from the average session volume of 15,183,527 shares. The stock had previously closed at $17.65.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. JPMorgan Chase & Co. reduced their price target on Energy Transfer from $25.00 to $23.00 and set an "overweight" rating for the company in a report on Monday, May 19th. Scotiabank assumed coverage on Energy Transfer in a report on Tuesday, September 2nd. They set a "sector outperform" rating and a $23.00 price target for the company. Morgan Stanley reduced their price target on Energy Transfer from $24.00 to $23.00 and set an "overweight" rating for the company in a report on Tuesday, August 26th. Cowen assumed coverage on Energy Transfer in a report on Monday, July 7th. They set a "buy" rating for the company. Finally, Mizuho lifted their price target on Energy Transfer from $22.00 to $23.00 and gave the company an "outperform" rating in a report on Tuesday, May 20th. Thirteen equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $22.54.

Energy Transfer Trading Down 1.4%

The company has a fifty day moving average of $17.62 and a two-hundred day moving average of $17.72. The company has a current ratio of 1.15, a quick ratio of 0.92 and a debt-to-equity ratio of 1.44. The stock has a market capitalization of $59.75 billion, a price-to-earnings ratio of 13.49, a price-to-earnings-growth ratio of 0.99 and a beta of 0.85.

Energy Transfer (NYSE:ET - Get Free Report) last posted its earnings results on Wednesday, August 6th. The pipeline company reported $0.32 earnings per share for the quarter, hitting the consensus estimate of $0.32. Energy Transfer had a return on equity of 11.08% and a net margin of 5.80%.The firm had revenue of $19.24 billion during the quarter, compared to analyst estimates of $24.07 billion. During the same period in the previous year, the company earned $0.35 EPS. The company's revenue for the quarter was down 7.2% on a year-over-year basis. On average, research analysts expect that Energy Transfer LP will post 1.46 EPS for the current year.

Energy Transfer Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 19th. Investors of record on Friday, August 8th were issued a $0.33 dividend. This is an increase from Energy Transfer's previous quarterly dividend of $0.33. The ex-dividend date was Friday, August 8th. This represents a $1.32 annualized dividend and a yield of 7.6%. Energy Transfer's dividend payout ratio is presently 102.33%.

Insider Buying and Selling

In other Energy Transfer news, Director Kelcy L. Warren purchased 1,350,000 shares of the business's stock in a transaction dated Wednesday, August 20th. The stock was bought at an average cost of $17.36 per share, for a total transaction of $23,436,000.00. Following the completion of the acquisition, the director directly owned 69,178,477 shares in the company, valued at $1,200,938,360.72. This represents a 1.99% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director James Richard Perry sold 1,369 shares of the company's stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $18.48, for a total value of $25,299.12. Following the transaction, the director owned 24,523 shares of the company's stock, valued at approximately $453,185.04. This trade represents a 5.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. 3.28% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ET. Kingstone Capital Partners Texas LLC acquired a new position in shares of Energy Transfer during the second quarter worth approximately $168,917,000. Alps Advisors Inc. lifted its holdings in shares of Energy Transfer by 12.9% during the first 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 first quarter worth approximately $92,607,000. Zurich Insurance Group Ltd FI bought a new stake in shares of Energy Transfer during the fourth quarter valued at approximately $79,113,000. Finally, Westwood Holdings Group Inc. increased its position in shares of Energy Transfer by 18.2% during the fourth quarter. Westwood Holdings Group Inc. now owns 16,331,220 shares of the pipeline company's stock valued at $319,929,000 after purchasing an additional 2,512,060 shares during the period. 38.22% of the stock is currently owned by institutional investors and hedge funds.

Energy Transfer Company Profile

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.