Bank of America Corp DE Sells 2,816,420 Shares of Energy Transfer LP $ET

Key Points

• Bank of America reduced its Energy Transfer stake by 9.1%, selling 2.82 million shares during the second quarter and retaining approximately 28.14 million shares valued at $538 million.
• Energy Transfer reported strong quarterly results, with EPS of $0.59 exceeding the $0.38 consensus estimate and revenue rising 78.4% year over year to $34.33 billion.
• The company’s $0.34 quarterly distribution equates to a 6.4% annualized yield, while analysts maintain a consensus “Buy” rating with an average price target of $24.17.

Bank of America Corp DE lessened its stake in shares of Energy Transfer LP (NYSE:ET - Free Report) by 9.1% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 28,139,938 shares of the pipeline company's stock after selling 2,816,420 shares during the quarter. Bank of America Corp DE owned about 0.82% of Energy Transfer worth $538,036,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Arrow Investment Advisors LLC lifted its position in Energy Transfer by 4.9% in the 2nd quarter. Arrow Investment Advisors LLC now owns 10,866 shares of the pipeline company's stock worth $208,000 after buying an additional 505 shares during the last quarter. Argent Trust Co boosted its holdings in Energy Transfer by 2.1% in the second quarter. Argent Trust Co now owns 26,035 shares of the pipeline company's stock valued at $498,000 after acquiring an additional 529 shares in the last quarter. State of Wyoming increased its position in shares of Energy Transfer by 2.5% during the second quarter. State of Wyoming now owns 22,822 shares of the pipeline company's stock valued at $436,000 after buying an additional 548 shares during the period. Keybank National Association OH grew its holdings in shares of Energy Transfer by 0.3% during the 1st quarter. Keybank National Association OH now owns 219,232 shares of the pipeline company's stock worth $4,231,000 after acquiring an additional 556 shares during the period. Finally, Cascade Financial Partners LLC grew its stake in Energy Transfer by 0.8% in the second quarter. Cascade Financial Partners LLC now owns 72,645 shares of the pipeline company's stock worth $1,389,000 after purchasing an additional 560 shares during the period. 38.22% of the stock is currently owned by hedge funds and other institutional investors.

Energy Transfer Stock Down 0.7%

Shares of NYSE:ET opened at $21.33 on Wednesday. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.16 and a quick ratio of 0.94. The business has a 50 day simple moving average of $20.78 and a two-hundred day simple moving average of $19.78. Energy Transfer LP has a 1 year low of $16.18 and a 1 year high of $21.84. The firm has a market capitalization of $73.45 billion, a PE ratio of 14.51, a price-to-earnings-growth ratio of 0.72 and a beta of 0.57.

Energy Transfer (NYSE:ET - Get Free Report) last issued its earnings results on Tuesday, August 4th. The pipeline company reported $0.59 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.21. The business had revenue of $34.33 billion for the quarter, compared to analyst estimates of $27.71 billion. Energy Transfer had a net margin of 4.87% and a return on equity of 11.55%. The company's quarterly revenue was up 78.4% compared to the same quarter last year. During the same period last year, the company posted $0.32 earnings per share. On average, equities analysts predict that Energy Transfer LP will post 1.74 EPS for the current year.

Energy Transfer Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Friday, August 7th were issued a $0.34 dividend. This is an increase from Energy Transfer's previous quarterly dividend of $0.34. This represents a $1.36 dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date of this dividend was Friday, August 7th. Energy Transfer's dividend payout ratio is 92.52%.

Energy Transfer News Roundup

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

• Positive Sentiment: Strong operating performance and higher guidance: Energy Transfer’s second-quarter adjusted EBITDA increased more than 30% to approximately $5.1 billion, while distributable cash flow rose 32%. Management raised full-year adjusted EBITDA guidance to roughly $18.8 billion–$19.1 billion, reflecting continued strength in its natural-gas and NGL businesses. Energy Transfer: Huge Macro Winner, Big Yield, Growing Dividend
• Positive Sentiment: Natural-gas demand provides a growth catalyst: Energy demand from artificial-intelligence data centers and potential supply disruptions in the Middle East could increase demand for U.S. energy infrastructure. The company’s fee-based pipeline and storage network may benefit from higher transportation volumes. Energy Transfer: Booming Natural Gas Business Creates Upside
• Positive Sentiment: Distribution remains well supported: Energy Transfer reportedly delivered a distribution coverage ratio of about 220% and announced its 19th consecutive distribution increase. The approximately 6.3% yield and strong cash-flow coverage may appeal to income-focused investors. Strong Buy Dividend Stock Offering a 6.3% Yield
• Positive Sentiment: Analyst estimates moved higher: Scotiabank raised its FY2026 EPS forecast to $1.65 from $1.44 and its FY2027 forecast to $1.65 from $1.50, signaling greater confidence in Energy Transfer’s earnings trajectory. Scotiabank Energy Transfer Estimates
• Positive Sentiment: Additional favorable publicity: CNBC commentator Jim Cramer recommended buying Energy Transfer, while valuation commentary characterized ET as attractively valued at roughly 7.5 times enterprise value to EBITDA. Cramer's Lightning Round: Buy Energy Transfer
• Neutral Sentiment: Planned Texas exchange listing: Energy Transfer intends to move its primary listing from the NYSE to the Texas Stock Exchange in October. The move could raise visibility and appeal to Texas-based investors, but the impact on trading liquidity and investor participation remains uncertain. Energy Transfer’s Texas Listing Could Boost Visibility, but Risks Remain

Insiders Place Their Bets

In related news, Director Kelcy L. Warren purchased 647,968 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was bought at an average cost of $21.26 per share, with a total value of $13,775,799.68. Following the completion of the acquisition, the director owned 147,901,879 shares of the company's stock, valued at $3,144,393,947.54. The trade was a 0.44% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director James Perry bought 12,359 shares of the stock in a transaction dated Friday, August 7th. The shares were purchased at an average cost of $20.23 per share, for a total transaction of $250,022.57. Following the completion of the purchase, the director owned 208,046 shares in the company, valued at approximately $4,208,770.58. This represents a 6.32% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 1,012,359 shares of company stock valued at $21,513,543 in the last 90 days. 3.28% of the stock is currently owned by company insiders.

Analyst Ratings Changes

ET has been the subject of a number of analyst reports. Truist Financial raised their price objective on Energy Transfer from $23.00 to $25.00 and gave the company a "buy" rating in a research report on Wednesday, August 12th. Royal Bank Of Canada restated an "outperform" rating and set a $23.00 price objective (up from $21.00) on shares of Energy Transfer in a research report on Tuesday, July 21st. Citigroup reissued a "buy" rating and issued a $24.00 target price (up from $23.00) on shares of Energy Transfer in a research report on Friday, August 7th. Barclays reiterated an "overweight" rating and set a $24.00 price target (up from $23.00) on shares of Energy Transfer in a research note on Wednesday, August 5th. Finally, Zacks Research downgraded Energy Transfer from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 11th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Energy Transfer presently has a consensus rating of "Buy" and an average price target of $24.17.

Energy Transfer Profile

Energy Transfer LP NYSE: ET is a diversified midstream energy partnership that owns and operates infrastructure used to transport, store, process and market energy commodities. Its assets support the movement of natural gas, crude oil, natural gas liquids (NGLs), refined products and other hydrocarbon-based materials.

The company's operations include natural gas gathering and processing, interstate and intrastate pipeline transportation, NGL fractionation and storage, crude oil and refined products transportation, and terminal services.

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