Energy Transfer LP (NYSE:ET) Shares Sold by Abrams Capital Management L.P.

Key Points

• Abrams Capital Management L.P. reduced its stake in Energy Transfer LP by 65.2%, holding approximately 6.2 million shares, which now represents 2.0% of its investment portfolio.
• Several hedge funds increased their holdings in Energy Transfer, with Brighton Jones LLC raising its position by 93.4%, while FMR LLC expanded its stake significantly by acquiring over 5 million shares.
• Energy Transfer has recently declared a quarterly dividend of $0.33 per share, reflecting a 7.4% yield and a payout ratio of approximately 99.24%.

Abrams Capital Management L.P. reduced its stake in shares of Energy Transfer LP (NYSE:ET - Free Report) by 65.2% during the 1st quarter, according to its most recent filing with the SEC. The firm owned 6,205,777 shares of the pipeline company's stock after selling 11,628,545 shares during the period. Energy Transfer makes up approximately 2.0% of Abrams Capital Management L.P.'s portfolio, making the stock its 10th biggest holding. Abrams Capital Management L.P. owned 0.18% of Energy Transfer worth $115,365,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Capital A Wealth Management LLC acquired a new stake in shares of Energy Transfer during the 4th quarter valued at about $26,000. Fourth Dimension Wealth LLC acquired a new stake in shares of Energy Transfer during the 4th quarter valued at about $29,000. Vision Financial Markets LLC acquired a new stake in shares of Energy Transfer during the 1st quarter valued at about $33,000. HWG Holdings LP acquired a new stake in shares of Energy Transfer during the 1st quarter valued at about $38,000. Finally, N.E.W. Advisory Services LLC acquired a new stake in shares of Energy Transfer during the 1st quarter valued at about $40,000. 38.22% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have recently commented on ET. JPMorgan Chase & Co. dropped their target price on Energy Transfer from $25.00 to $23.00 and set an "overweight" rating on the stock in a research report on Monday, May 19th. Mizuho lifted their price objective on Energy Transfer from $22.00 to $23.00 and gave the stock an "outperform" rating in a report on Tuesday, May 20th. Wells Fargo & Company lowered their price objective on Energy Transfer from $22.00 to $21.00 and set an "overweight" rating on the stock in a report on Wednesday, May 7th. TD Cowen initiated coverage on Energy Transfer in a report on Monday, July 7th. They issued a "buy" rating and a $22.00 price objective on the stock. Finally, Cowen initiated coverage on Energy Transfer in a report on Monday, July 7th. They issued a "buy" rating on the stock. One investment analyst has rated the stock with a hold rating and twelve have assigned a buy rating to the company's stock. According to data from MarketBeat, Energy Transfer has a consensus rating of "Moderate Buy" and a consensus target price of $22.58.

Energy Transfer Price Performance

Shares of Energy Transfer stock traded down $0.24 on Thursday, hitting $17.62. 19,251,630 shares of the company were exchanged, compared to its average volume of 13,598,286. The stock has a market capitalization of $60.48 billion, a price-to-earnings ratio of 13.66, a price-to-earnings-growth ratio of 0.93 and a beta of 0.83. The company has a 50-day moving average price of $17.79 and a 200 day moving average price of $18.16. Energy Transfer LP has a 1-year low of $14.60 and a 1-year high of $21.45. The company has a quick ratio of 0.92, a current ratio of 1.12 and a debt-to-equity ratio of 1.41.

Energy Transfer (NYSE:ET - Get Free Report) last issued 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. The business had revenue of $19.24 billion for the quarter, compared to analysts' expectations of $24.07 billion. Energy Transfer had a return on equity of 11.07% and a net margin of 5.80%. The business's revenue for the quarter was down 7.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.35 EPS. As a group, sell-side analysts predict that Energy Transfer LP will post 1.46 earnings per share for the current fiscal year.

Energy Transfer Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 19th. Shareholders of record on Friday, August 8th will be given a $0.33 dividend. The ex-dividend date of this dividend is Friday, August 8th. This is a positive change from Energy Transfer's previous quarterly dividend of $0.33. This represents a $1.32 dividend on an annualized basis and a yield of 7.5%. Energy Transfer's dividend payout ratio is presently 99.24%.

Insider Transactions at Energy Transfer

In other Energy Transfer news, Director James Richard Perry sold 1,369 shares of the business'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 sale, the director owned 24,523 shares of the company's stock, valued at $453,185.04. The trade was a 5.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 3.28% of the stock is currently owned by insiders.

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.