Energy Transfer Target of Unusually Large Options Trading (NYSE:ET)

Key Points

• Energy Transfer LP saw a significant increase in call options trading, with 59,753 call options purchased, reflecting a 45% rise over its typical volume.
• Director Kelcy L. Warren purchased 1,350,000 shares at $17.36 each, increasing his stake in the company to nearly 69.2 million shares, valued over $1.2 billion.
• Energy Transfer recently maintained a quarterly dividend of $0.33, yielding 7.9%, with a payout ratio of 102.33%, indicating the company's commitment to returning value to shareholders despite fluctuating revenues.

Energy Transfer LP (NYSE:ET - Get Free Report) saw some unusual options trading activity on Wednesday. Investors bought 59,753 call options on the stock. This represents an increase of approximately 45% compared to the typical volume of 41,257 call options.

Insider Activity

In other 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, for a total transaction of $23,436,000.00. Following the completion of the purchase, 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 3.28% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in ET. Ryan Investment Management Inc. acquired a new position in shares of Energy Transfer in the 2nd quarter valued at $31,000. Vision Financial Markets LLC acquired a new stake in shares of Energy Transfer during the first quarter worth $33,000. CNB Bank grew its stake in shares of Energy Transfer by 111.1% during the 2nd quarter. CNB Bank now owns 1,900 shares of the pipeline company's stock valued at $34,000 after buying an additional 1,000 shares during the period. Stone House Investment Management LLC acquired a new position in shares of Energy Transfer during the 1st quarter valued at $38,000. Finally, HWG Holdings LP acquired a new stake in Energy Transfer during the 1st quarter valued at $38,000. Institutional investors and hedge funds own 38.22% of the company's stock.

Energy Transfer Stock Performance

NYSE:ET traded up $0.17 during trading hours on Wednesday, hitting $16.70. 9,450,347 shares of the company were exchanged, compared to its average volume of 14,901,929. The company's 50 day moving average price is $17.29 and its 200-day moving average price is $17.43. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.15 and a quick ratio of 0.92. The stock has a market capitalization of $57.31 billion, a price-to-earnings ratio of 12.97, a PEG ratio of 0.97 and a beta of 0.78. Energy Transfer has a 52-week low of $14.60 and a 52-week high of $21.45.

Energy Transfer (NYSE:ET - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The pipeline company reported $0.32 earnings per share for the quarter, meeting the consensus estimate of $0.32. Energy Transfer had a return on equity of 11.08% and a net margin of 5.80%.The company had revenue of $19.24 billion during the quarter, compared to analysts' expectations of $24.07 billion. During the same period last year, the business earned $0.35 earnings per share. Energy Transfer's quarterly revenue was down 7.2% on a year-over-year basis. As a group, research analysts forecast that Energy Transfer will post 1.46 earnings per share for the current year.

Energy Transfer Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 19th. Stockholders of record on Friday, August 8th were paid a $0.33 dividend. The ex-dividend date of this dividend was Friday, August 8th. This is a positive change from Energy Transfer's previous quarterly dividend of $0.33. This represents a $1.32 annualized dividend and a dividend yield of 7.9%. Energy Transfer's payout ratio is 102.33%.

Analyst Ratings Changes

ET has been the topic of a number of analyst reports. Barclays restated an "overweight" rating and issued a $25.00 price objective on shares of Energy Transfer in a research report on Wednesday. Cowen initiated coverage on shares of Energy Transfer in a research note on Monday, July 7th. They issued a "buy" rating for the company. TD Cowen began coverage on Energy Transfer in a report on Monday, July 7th. They issued a "buy" rating and a $22.00 target price on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Energy Transfer in a research note on Wednesday, October 8th. Finally, Scotiabank initiated coverage on shares of Energy Transfer in a report on Tuesday, September 2nd. They set a "sector outperform" rating and a $23.00 price objective for the company. Fourteen investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Energy Transfer presently has an average rating of "Moderate Buy" and a consensus price target of $22.46.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.