Energy Transfer (NYSE:ET) Shares Up 0.9% - Time to Buy?

On Wednesday, shares of Energy Transfer LP (NYSE:ET) saw an increase of 0.9% during mid-day trading, reaching a high of $18.89 and settling at $18.85. During this period, a total of 1,376,362 shares changed hands, representing a significant drop of 90% compared to the average trading volume of 14,471,982 shares. The stock had closed at $18.68 on the previous trading day.

Analysts have recently provided varied evaluations for the company. Notably, The Goldman Sachs Group adjusted its price target for Energy Transfer from $17.00 to $20.00 while maintaining a "neutral" rating in a report released on December 19. Wells Fargo & Company revised their target from $20.00 to $21.00 and rated the shares as "overweight" in their analysis on December 18. Similarly, Barclays increased their price target from $22.00 to $25.00, also giving it an "overweight" rating earlier in the year. Stifel Nicolaus raised its price objective for the shares from $21.00 to $23.00 with a "buy" rating during their report on February 12. Lastly, the Royal Bank of Canada elevated its target price from $20.00 to $23.00 and rated the stock as "outperform" in a note from December 9. Overall, one analyst rated the stock as a hold, while ten analysts assigned it a buy rating. According to reports, Energy Transfer has a consensus rating classified as "Moderate Buy" with an average price target set at $21.55.

Market Overview of Energy Transfer

At present, the company boasts a market capitalization of approximately $64.80 billion. The stock has a price-to-earnings (P/E) ratio of 14.75 and a price-to-earnings-to-growth (P/E/G) ratio of 0.64. It also has a beta value of 1.72. The financial health indicators reveal a debt-to-equity ratio of 1.42, a current ratio of 1.12, and a quick ratio of 0.88. Currently, the 50-day moving average price stands at $19.62, while the 200-day moving average is at $18.23.

Recent Earnings and Dividend News

Energy Transfer released its most recent earnings report on February 11, revealing earnings per share (EPS) of $0.29 for the quarter, which did not meet analysts' expectations of $0.35, representing a $0.06 miss. The company's return on equity was noted at 11.56%, and its net margin was reported at 5.74%. Analysts are projecting that Energy Transfer LP will achieve an EPS of 1.46 for the current financial year.

In a positive development for shareholders, Energy Transfer announced a quarterly dividend recently, which was paid on February 19. Shareholders recorded on February 7 received a dividend payment of $0.325 per share, amounting to an annualized dividend of $1.30, resulting in a dividend yield of 6.88%. This marks an increase from the previous quarterly dividend of $0.32. The ex-dividend date was also February 7, with the company currently having a dividend payout ratio of 101.56%.

Institutional Investor Activity

Various institutional investors have recently made adjustments to their stakes in Energy Transfer. Stonegate Investment Group LLC increased its holding by 1.4% in the fourth quarter and now owns 34,320 shares valued at $672,000 after acquiring an additional 482 shares. Private Client Services LLC raised their position by 3.1% during the same quarter, bringing its ownership up to 16,915 shares worth $331,000 after buying an additional 511 shares. Additionally, United Advisor Group LLC boosted its stake by 3.0% and now holds 18,540 shares valued at $363,000. Wealthspire Advisors LLC increased its holdings slightly by 0.4%, owning 130,202 shares worth $2,551,000, while Cannell & Spears LLC also grew its stake by 0.4%, owning 135,647 shares valued at $2,657,000. Overall, institutional investors and hedge funds own approximately 38.22% of Energy Transfer's shares.

Company Profile

Energy Transfer LP specializes in providing energy-related services. It owns and operates natural gas transportation pipelines and storage facilities across Texas and Oklahoma, boasting around 20,090 miles of interstate natural gas pipeline. The company also sells natural gas to various entities, including electric utilities, independent power plants, local distribution, and other marketing companies.

Investment Consideration

Before deciding to invest in Energy Transfer, it's advised to consider several factors. Although the stock currently holds a "Moderate Buy" rating among several analysts, there are indications that other stocks may present better investment opportunities. Investment professionals have recommended different stocks recently that they believe offer more promising prospects than Energy Transfer.

Energy, Transfer, Investment