Energy Transfer (NYSE:ET) Trading Up 1.7% - Here's Why

Key Points

• Energy Transfer shares rose 1.7% to $21.38 in mid-day trading, while trading volume was 43% below the average session level.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $24.08; TD Cowen also raised its target to $25 from $24.
• The company reported quarterly EPS of $0.59, beating estimates by $0.21, while revenue increased 78.4% year over year to $34.33 billion. Energy Transfer also maintained a $0.34 quarterly dividend, representing a 6.4% annualized yield, and insiders purchased more than 1 million shares over the past 90 days.

Energy Transfer LP (NYSE:ET - Get Free Report)'s share price traded up 1.7% during mid-day trading on Wednesday . The stock traded as high as $21.50 and last traded at $21.38. Approximately 7,580,292 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 13,196,908 shares. The stock had previously closed at $21.02.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Weiss Ratings raised shares of Energy Transfer from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday, August 11th. Wall Street Zen raised shares of Energy Transfer from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Scotiabank reissued an "outperform" rating on shares of Energy Transfer in a research report on Tuesday, May 12th. TD Cowen reiterated a "buy" rating and issued a $25.00 price objective (up from $24.00) on shares of Energy Transfer in a research note on Monday, August 10th. Finally, Zacks Research cut Energy Transfer from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $24.08.

Energy Transfer Stock Up 1.7%

The firm has a market cap of $73.62 billion, a price-to-earnings ratio of 14.54, a PEG ratio of 0.74 and a beta of 0.55. The business's 50-day moving average is $20.06 and its 200-day moving average is $19.47. The company has a debt-to-equity ratio of 1.45, a quick ratio of 0.94 and a current ratio of 1.16.

Energy Transfer (NYSE:ET - Get Free Report) last released its quarterly 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. The firm had revenue of $34.33 billion for the quarter, compared to analyst estimates of $27.71 billion. Energy Transfer had a net margin of 4.87% and a return on equity of 11.55%. The company's revenue for the quarter was up 78.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.32 earnings per share. On average, equities analysts predict that Energy Transfer LP will post 1.66 EPS for the current year.

Energy Transfer Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Friday, August 7th were issued a dividend of $0.34 per share. The ex-dividend date was Friday, August 7th. This is a boost from Energy Transfer's previous quarterly dividend of $0.34. This represents a $1.36 annualized dividend and a dividend yield of 6.4%. Energy Transfer's dividend payout ratio (DPR) is currently 92.52%.

Insider Activity

In other news, Director Kelcy L. Warren acquired 647,968 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was purchased at an average cost of $21.26 per share, for a total transaction of $13,775,799.68. Following the completion of the transaction, the director directly owned 147,901,879 shares in the company, valued at $3,144,393,947.54. This trade represents a 0.44% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director James Richard Perry purchased 12,359 shares of the stock in a transaction dated Friday, August 7th. The shares were acquired at an average price of $20.23 per share, with a total value of $250,022.57. Following the transaction, the director owned 208,046 shares in the company, valued at $4,208,770.58. This trade represents a 6.32% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired a total of 1,012,359 shares of company stock valued at $21,513,543 in the last 90 days. Corporate insiders own 3.28% of the company's stock.

Institutional Investors Weigh In On Energy Transfer

A number of institutional investors have recently made changes to their positions in ET. Texas Yale Capital Corp. grew its position in shares of Energy Transfer by 6.1% during the 4th quarter. Texas Yale Capital Corp. now owns 1,311,965 shares of the pipeline company's stock worth $21,634,000 after purchasing an additional 75,700 shares in the last quarter. North Star Investment Management Corp. lifted its position in shares of Energy Transfer by 100.1% during the 4th quarter. North Star Investment Management Corp. now owns 161,523 shares of the pipeline company's stock worth $2,664,000 after buying an additional 80,786 shares during the last quarter. Summit Securities Group LLC boosted its stake in Energy Transfer by 179.0% in the first quarter. Summit Securities Group LLC now owns 162,100 shares of the pipeline company's stock valued at $3,129,000 after buying an additional 104,000 shares in the last quarter. Mizuho Markets Americas LLC acquired a new stake in Energy Transfer in the first quarter valued at about $61,760,000. Finally, Sanctuary Advisors LLC grew its position in Energy Transfer by 15.8% in the first quarter. Sanctuary Advisors LLC now owns 1,888,661 shares of the pipeline company's stock valued at $36,451,000 after acquiring an additional 257,954 shares during the last quarter. 38.22% of the stock is owned by institutional investors and hedge funds.

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.

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