Insider Buying: Energy Transfer (NYSE:ET) Director Acquires 650,000 Shares of Stock

Key Points

• Kelcy Warren, Director of Energy Transfer, purchased 650,000 shares for approximately $11.25 million, increasing his ownership to nearly 68 million shares.
• The company reported $0.32 EPS for the last quarter, meeting analysts' expectations, though revenues were down 7.2% year-over-year.
• Energy Transfer recently enhanced its dividend to $0.33 per share, with a current yield of 7.5% and a payout ratio of 102.33%.

Energy Transfer LP (NYSE:ET - Get Free Report) Director Kelcy Warren bought 650,000 shares of the business's stock in a transaction on Tuesday, August 19th. The stock was purchased at an average price of $17.30 per share, with a total value of $11,245,000.00. Following the completion of the transaction, the director directly owned 67,828,477 shares of the company's stock, valued at $1,173,432,652.10. This trade represents a 0.97% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link.

Energy Transfer Price Performance

ET traded up $0.1750 during trading on Thursday, reaching $17.5050. The stock had a trading volume of 4,268,516 shares, compared to its average volume of 15,488,563. The firm has a market capitalization of $60.09 billion, a price-to-earnings ratio of 13.57, a price-to-earnings-growth ratio of 0.90 and a beta of 0.83. The company has a quick ratio of 0.92, a current ratio of 1.15 and a debt-to-equity ratio of 1.44. Energy Transfer LP has a 1-year low of $14.60 and a 1-year high of $21.45. The stock has a 50 day moving average of $17.71 and a two-hundred day moving average of $17.95.

Energy Transfer (NYSE:ET - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The pipeline company reported $0.32 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.32. The company 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 11.08% and a net margin of 5.80%.The firm's revenue was down 7.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.35 earnings per share. As a group, equities analysts anticipate that Energy Transfer LP will post 1.46 EPS for the current fiscal year.

Energy Transfer Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 19th. Investors of record on Friday, August 8th were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Friday, August 8th. This is a boost from Energy Transfer's previous quarterly dividend of $0.33. This represents a $1.32 annualized dividend and a yield of 7.5%. Energy Transfer's payout ratio is 102.33%.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Mizuho upped their price objective on shares of Energy Transfer from $22.00 to $23.00 and gave the stock an "outperform" rating in a report on Tuesday, May 20th. Cowen assumed coverage on Energy Transfer in a research report on Monday, July 7th. They set a "buy" rating for the company. Wells Fargo & Company reiterated an "overweight" rating and issued a $23.00 price objective (up previously from $21.00) on shares of Energy Transfer in a research report on Tuesday, August 12th. JPMorgan Chase & Co. cut their price objective on Energy Transfer from $25.00 to $23.00 and set an "overweight" rating for the company in a research report on Monday, May 19th. Finally, TD Cowen started coverage on Energy Transfer in a research report on Monday, July 7th. They issued a "buy" rating and a $22.00 price objective for the company. Twelve investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $22.75.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Thompson Davis & CO. Inc. boosted its position in shares of Energy Transfer by 108.4% during the second quarter. Thompson Davis & CO. Inc. now owns 21,877 shares of the pipeline company's stock worth $397,000 after purchasing an additional 11,377 shares in the last quarter. B. Riley Wealth Advisors Inc. bought a new position in shares of Energy Transfer during the second quarter worth $1,764,000. Newbridge Financial Services Group Inc. boosted its position in shares of Energy Transfer by 144.9% during the second quarter. Newbridge Financial Services Group Inc. now owns 72,805 shares of the pipeline company's stock worth $1,320,000 after purchasing an additional 43,080 shares in the last quarter. MRP Capital Investments LLC boosted its position in shares of Energy Transfer by 3.9% during the second quarter. MRP Capital Investments LLC now owns 55,488 shares of the pipeline company's stock worth $1,006,000 after purchasing an additional 2,080 shares in the last quarter. Finally, Advisory Services Network LLC boosted its position in shares of Energy Transfer by 25.6% during the second quarter. Advisory Services Network LLC now owns 399,351 shares of the pipeline company's stock worth $7,204,000 after purchasing an additional 81,344 shares in the last quarter. 38.22% of the stock is currently owned by institutional investors.

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.

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