SCS Capital Management LLC Increases Stock Holdings in Energy Transfer LP $ET

Key Points

• SCS Capital Management dramatically increased its Energy Transfer stake by 1,859.8% in the second quarter, ending with 1.94 million shares worth approximately $37.1 million. Institutional investors collectively own 38.22% of the company.
• Energy Transfer reported strong quarterly results, with $0.59 earnings per share versus the $0.38 consensus estimate and revenue up 78.4% year over year to $34.33 billion.
• The company declared a quarterly dividend of $0.34, equivalent to a 6.5% annualized yield, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus and an average price target of $23.92.

SCS Capital Management LLC grew its stake in Energy Transfer LP (NYSE:ET - Free Report) by 1,859.8% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,942,908 shares of the pipeline company's stock after purchasing an additional 1,843,771 shares during the period. Energy Transfer makes up approximately 0.4% of SCS Capital Management LLC's portfolio, making the stock its 21st biggest holding. SCS Capital Management LLC owned about 0.06% of Energy Transfer worth $37,148,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the stock. State of Wyoming raised its stake 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 worth $436,000 after purchasing an additional 548 shares during the last quarter. GSA Capital Partners LLP grew its position in Energy Transfer by 34.0% in the 2nd quarter. GSA Capital Partners LLP now owns 36,308 shares of the pipeline company's stock valued at $694,000 after buying an additional 9,219 shares during the last quarter. Russell Investments Group Ltd. grew its position in Energy Transfer by 32.4% in the 2nd quarter. Russell Investments Group Ltd. now owns 10,535 shares of the pipeline company's stock valued at $201,000 after buying an additional 2,580 shares during the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new position in Energy Transfer in the 2nd quarter valued at $42,000. Finally, Meridian Wealth Management LLC increased its stake in Energy Transfer by 4.0% in the 2nd quarter. Meridian Wealth Management LLC now owns 74,768 shares of the pipeline company's stock valued at $1,430,000 after buying an additional 2,909 shares during the period. Institutional investors and hedge funds own 38.22% of the company's stock.

Insider Activity

In related news, Director James Richard Perry purchased 12,359 shares of the business's stock in a transaction dated Friday, August 7th. The stock was acquired at an average price of $20.23 per share, for a total transaction of $250,022.57. Following the acquisition, the director directly owned 208,046 shares of the company's stock, valued at $4,208,770.58. This trade represents a 6.32% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 3.28% of the stock is owned by corporate insiders.

Energy Transfer Trading Up 1.3%

Shares of ET stock opened at $21.02 on Friday. The business's fifty day moving average price is $19.76 and its 200 day moving average price is $19.32. The firm has a market capitalization of $72.39 billion, a PE ratio of 14.30, a P/E/G ratio of 2.00 and a beta of 0.55. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.16 and a quick ratio of 0.94. Energy Transfer LP has a 1-year low of $16.18 and a 1-year high of $21.11.

Energy Transfer (NYSE:ET - Get Free Report) last released its earnings results on Tuesday, August 4th. The pipeline company reported $0.59 EPS for the quarter, beating analysts' consensus estimates of $0.38 by $0.21. Energy Transfer had a return on equity of 11.55% and a net margin of 4.87%.The company had revenue of $34.33 billion during the quarter, compared to the consensus estimate of $27.71 billion. During the same quarter last year, the company earned $0.32 earnings per share. Energy Transfer's quarterly revenue was up 78.4% compared to the same quarter last year. As a group, sell-side analysts forecast that Energy Transfer LP will post 1.63 EPS for the current fiscal year.

Energy Transfer Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Friday, August 7th will be issued a $0.34 dividend. The ex-dividend date is Friday, August 7th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 6.5%. This is a boost from Energy Transfer's previous quarterly dividend of $0.34. Energy Transfer's payout ratio is 92.52%.

Analyst Ratings Changes

A number of equities analysts have commented on ET shares. Truist Financial upped their price objective on shares of Energy Transfer from $23.00 to $25.00 and gave the stock a "buy" rating in a research report on Wednesday. Barclays reaffirmed an "overweight" rating and issued a $24.00 target price (up from $23.00) on shares of Energy Transfer in a report on Wednesday, August 5th. Weiss Ratings upgraded shares of Energy Transfer from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday. TD Cowen reissued a "buy" rating and set a $25.00 price target (up from $24.00) on shares of Energy Transfer in a report on Monday, August 10th. Finally, Stifel Nicolaus raised their price objective on shares of Energy Transfer from $23.00 to $25.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $23.92.

Key Headlines Impacting Energy Transfer

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

• Positive Sentiment: Income appeal remains a key support. An investor analysis argues that Energy Transfer’s distribution yield, now near 6.5%, remains attractive and that the payout appears dependable, reinforcing ET’s appeal as a high-income midstream investment. Energy Transfer’s Yield Just Climbed Near 6.5%. Here’s Why I’m Not Worried About the Payout.
• Positive Sentiment: AI-related power demand could create growth opportunities. Alpha Wealth Funds highlighted ET’s positioning to benefit from the expected surge in electricity consumption from artificial-intelligence infrastructure, potentially increasing demand for natural gas and related energy services. Energy Transfer Positions to Capitalize on the AI Power Surge
• Positive Sentiment: Analyst and insider signals are favorable. Truist Financial forecast strong potential price appreciation, while separate coverage said ET shares benefited from insider buying activity. These signals may strengthen investor confidence, although they do not guarantee future performance. Truist Financial Forecasts Strong Price Appreciation for Energy Transfer Stock Energy Transfer Stock Price Up on Insider Buying Activity
• Neutral Sentiment: Natural-gas prices moved higher. Warmer-weather forecasts helped lift natural-gas prices, which could improve industry sentiment. However, ET’s diversified, largely fee-based midstream model may limit the direct effect of commodity-price changes. Nat-Gas Prices Close Higher on Warm Forecasts
• Negative Sentiment: Zacks downgraded ET from “strong buy” to “hold.” The rating change is a modest headwind and may encourage some investors to take profits after the stock’s recent momentum. Zacks.com

About Energy Transfer

Energy Transfer NYSE: ET is a Dallas-based midstream energy company that develops and operates infrastructure for the transportation, storage and processing of hydrocarbons. The company's operations focus on moving and storing natural gas, natural gas liquids (NGLs), crude oil and refined products through an integrated network of pipelines, terminals, storage facilities and processing plants. Energy Transfer provides core midstream services such as gathering, compression, fractionation, processing, and bulk transportation to support production and downstream supply chains.

Its asset base spans an extensive network across the United States, connecting producing regions, processing centers, petrochemical hubs and coastal and inland markets.

Want to see what other hedge funds are holding ET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Energy Transfer LP (NYSE:ET - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source