Energy Transfer (NYSE:ET) Stock Price Up 1.2% - Still a Buy?

Key Points

• Energy Transfer shares rose 1.2% to $20.72, while trading volume was 42% below the average session volume.
• Analysts maintain a favorable outlook, with a consensus rating of “Moderate Buy” and an average price target of $24.36, implying potential upside from the current price.
• The company reported stronger-than-expected quarterly results, including $0.59 EPS and $34.33 billion in revenue, while raising its quarterly dividend to $0.34, equivalent to a 6.6% annualized yield.

Energy Transfer LP (NYSE:ET - Get Free Report)'s stock price shot up 1.2% on Monday. The stock traded as high as $20.73 and last traded at $20.72. 7,203,562 shares changed hands during mid-day trading, a decline of 42% from the average session volume of 12,527,603 shares. The stock had previously closed at $20.47.

Analysts Set New Price Targets

Several research firms have recently issued reports on ET. Barclays reaffirmed an "overweight" rating and set a $24.00 price objective (up from $23.00) on shares of Energy Transfer in a research report on Wednesday, August 5th. Melius Research began coverage on Energy Transfer in a report on Tuesday, September 22nd. They issued a "hold" rating and a $25.00 price target for the company. Jefferies Financial Group reiterated a "buy" rating on shares of Energy Transfer in a research note on Wednesday, August 5th. TD Cowen restated a "buy" rating and set a $25.00 price objective (up from $24.00) on shares of Energy Transfer in a research report on Monday, August 10th. Finally, Wall Street Zen upgraded Energy Transfer from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $24.36.

Energy Transfer Stock Up 1.2%

The firm has a market cap of $71.35 billion, a price-to-earnings ratio of 14.10, a P/E/G ratio of 0.69 and a beta of 0.60. The firm's 50 day moving average price is $20.87 and its two-hundred day moving average price is $19.94. 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 (NYSE:ET - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The pipeline company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.21. Energy Transfer had a return on equity of 11.55% and a net margin of 4.87%.The firm had revenue of $34.33 billion for the quarter, compared to analysts' expectations of $27.71 billion. During the same quarter in the previous year, the firm posted $0.32 EPS. The firm's revenue for the quarter was up 78.4% on a year-over-year basis. As a group, sell-side analysts forecast that Energy Transfer LP will post 1.73 earnings per share for the current fiscal year.

Energy Transfer Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Friday, August 7th were paid a $0.34 dividend. The ex-dividend date of this dividend was Friday, August 7th. This represents a $1.36 annualized dividend and a yield of 6.6%. This is an increase from Energy Transfer's previous quarterly dividend of $0.3375. Energy Transfer's dividend payout ratio is presently 92.52%.

Insider Activity

In other news, Director James Perry purchased 12,359 shares of the company's stock in a transaction dated Friday, August 7th. The shares were acquired 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 directly owned 208,046 shares in the company, valued at $4,208,770.58. The trade was a 6.32% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kelcy Warren purchased 647,968 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were purchased 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 directly owned 147,901,879 shares of the company's stock, valued at $3,144,393,947.54. This represents a 0.44% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders bought 1,012,359 shares of company stock worth $21,513,543. Insiders own 3.28% of the company's stock.

Institutional Investors Weigh In On Energy Transfer

Several institutional investors have recently made changes to their positions in ET. Alps Advisors Inc. grew its position in Energy Transfer by 8.0% during the fourth quarter. Alps Advisors Inc. now owns 83,843,087 shares of the pipeline company's stock worth $1,382,573,000 after buying an additional 6,192,066 shares during the period. Bank of America Corp DE grew its holdings in Energy Transfer by 5.7% in the first quarter. Bank of America Corp DE now owns 30,956,358 shares of the pipeline company's stock valued at $597,458,000 after purchasing an additional 1,656,609 shares during the last quarter. Energy Income Partners LLC raised its stake in shares of Energy Transfer by 1.8% during the 2nd quarter. Energy Income Partners LLC now owns 25,654,536 shares of the pipeline company's stock worth $490,515,000 after buying an additional 447,081 shares during the last quarter. Clearbridge Investments LLC boosted its position in shares of Energy Transfer by 3.0% in the 4th quarter. Clearbridge Investments LLC now owns 13,014,994 shares of the pipeline company's stock worth $214,617,000 after buying an additional 374,000 shares in the last quarter. Finally, LPL Financial LLC grew its stake in Energy Transfer by 3.2% in the 4th quarter. LPL Financial LLC now owns 7,696,319 shares of the pipeline company's stock valued at $126,912,000 after acquiring an additional 235,863 shares during the last quarter. 38.22% of the stock is currently owned by hedge funds and other institutional investors.

Energy Transfer Company Profile

Energy Transfer LP is a diversified energy infrastructure company headquartered in Dallas, Texas. The partnership owns and operates a broad network of pipelines, processing facilities, storage assets and terminals that support the movement of natural gas, natural gas liquids, crude oil and refined products across the United States.

The company's operations include gathering and processing natural gas, transporting and storing natural gas and NGLs, fractionating NGLs into component products, and transporting crude oil and refined products.

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