Newbrook Capital Advisors LP Takes $27.31 Million Position in Energy Transfer LP $ET

Key Points

• Newbrook Capital Advisors LP has made a significant investment of $27.31 million in Energy Transfer LP, acquiring approximately 1.47 million shares, which now constitute about 4.3% of their portfolio.
• Energy Transfer recently increased its quarterly dividend to $0.33, maintaining a notable dividend yield of 7.4%, despite having a payout ratio of over 102%.
• Analysts currently rate Energy Transfer as a "Moderate Buy", with a consensus price target of $22.50, reflecting confidence in the firm's growth prospects.

Newbrook Capital Advisors LP acquired a new stake in Energy Transfer LP (NYSE:ET - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 1,469,224 shares of the pipeline company's stock, valued at approximately $27,313,000. Energy Transfer accounts for 4.3% of Newbrook Capital Advisors LP's investment portfolio, making the stock its 10th largest position.

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

Energy Transfer Trading Down 0.7%

Energy Transfer stock traded down $0.12 during trading hours on Wednesday, reaching $17.58. The company had a trading volume of 9,689,342 shares, compared to its average volume of 13,387,606. 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 company has a 50-day moving average price of $17.64 and a 200 day moving average price of $17.78. The firm has a market cap of $60.35 billion, a price-to-earnings ratio of 13.74, a P/E/G ratio of 0.93 and a beta of 0.85. Energy Transfer LP has a 12-month low of $14.60 and a 12-month high of $21.45.

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

Energy Transfer Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 19th. Shareholders of record on Friday, August 8th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 7.5%. The ex-dividend date was Friday, August 8th. This is an increase from Energy Transfer's previous quarterly dividend of $0.33. Energy Transfer's dividend payout ratio (DPR) is 102.33%.

Insider Buying and Selling at Energy Transfer

In other Energy Transfer news, Director Kelcy L. Warren bought 1,350,000 shares of Energy Transfer stock in a transaction dated Wednesday, August 20th. The stock was acquired at an average cost of $17.36 per share, for a total transaction 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 approximately $1,200,938,360.72. This represents a 1.99% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director James Richard Perry sold 1,369 shares of the stock in a transaction 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 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 currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. JPMorgan Chase & Co. dropped their price objective on shares of Energy Transfer from $25.00 to $23.00 and set an "overweight" rating on the stock in a report on Monday, May 19th. Wells Fargo & Company reissued an "overweight" rating and set a $23.00 target price (up from $21.00) on shares of Energy Transfer in a report on Tuesday, August 12th. Cowen assumed coverage on Energy Transfer in a research note on Monday, July 7th. They set a "buy" rating on the stock. Morgan Stanley decreased 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. Finally, TD Cowen started coverage on Energy Transfer in a research report on Monday, July 7th. They set a "buy" rating and a $22.00 target price on the stock. Thirteen analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Energy Transfer has an average rating of "Moderate Buy" and an average target price of $22.54.

Energy Transfer 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.