Energy Transfer Sees Unusually Large Options Volume (NYSE:ET)

Energy Transfer LP (NYSE:ET) was the target of some unusual options trading activity on Thursday. Traders purchased 2,062,485 call options on the stock. This represents an increase of 3,571% compared to the average daily volume of 56,177 call options.

Energy Transfer Stock Down 0.1 %

ET stock traded down $0.02 during trading on Thursday, hitting $16.23. 20,452,225 shares of the stock traded hands, compared to its average volume of 12,311,496. Energy Transfer has a 1 year low of $12.21 and a 1 year high of $16.40. The stock has a market cap of $54.68 billion, a price-to-earnings ratio of 14.98 and a beta of 1.63. The firm’s 50 day moving average is $15.52 and its two-hundred day moving average is $14.43. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.10 and a quick ratio of 0.88.

Energy Transfer (NYSE:ET) last released its quarterly earnings results on Wednesday, May 8th. The pipeline company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.04). The business had revenue of $21.63 billion for the quarter, compared to analysts’ expectations of $20.91 billion. Energy Transfer had a net margin of 4.85% and a return on equity of 12.17%. Energy Transfer’s revenue for the quarter was up 13.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.32 EPS. On average, sell-side analysts anticipate that Energy Transfer will post 1.56 EPS for the current year.

Energy Transfer Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, May 20th. Stockholders of record on Monday, May 13th will be paid a $0.317 dividend. This represents a $1.27 annualized dividend and a dividend yield of 7.81%. This is a positive change from Energy Transfer’s previous quarterly dividend of $0.32. The ex-dividend date of this dividend is Friday, May 10th. Energy Transfer’s dividend payout ratio (DPR) is presently 116.51%.

Hedge Funds Weigh In On Energy Transfer

A number of large investors have recently made changes to their positions in the company. First Reserve GP XIII Ltd bought a new stake in Energy Transfer during the 4th quarter valued at $322,097,000. Alps Advisors Inc. boosted its stake in Energy Transfer by 14.5% in the third quarter. Alps Advisors Inc. now owns 73,666,501 shares of the pipeline company’s stock valued at $1,033,541,000 after acquiring an additional 9,341,798 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its holdings in Energy Transfer by 38.3% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 25,621,485 shares of the pipeline company’s stock worth $353,576,000 after purchasing an additional 7,097,074 shares during the last quarter. Clearbridge Investments LLC increased its position in shares of Energy Transfer by 18.5% during the fourth quarter. Clearbridge Investments LLC now owns 25,423,547 shares of the pipeline company’s stock worth $350,845,000 after purchasing an additional 3,976,676 shares in the last quarter. Finally, International Assets Investment Management LLC boosted its position in shares of Energy Transfer by 1,447.6% in the 4th quarter. International Assets Investment Management LLC now owns 3,756,955 shares of the pipeline company’s stock worth $518,460,000 after purchasing an additional 3,514,195 shares in the last quarter. 38.22% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ET. Citigroup lifted their target price on shares of Energy Transfer from $17.00 to $18.00 and gave the company a “buy” rating in a research report on Wednesday, February 21st. Mizuho restated a “buy” rating and set a $19.00 target price (up previously from $18.00) on shares of Energy Transfer in a report on Thursday, April 18th. Stifel Nicolaus raised their price objective on Energy Transfer from $18.00 to $19.00 and gave the company a “buy” rating in a research report on Thursday. Finally, UBS Group decreased their price target on shares of Energy Transfer from $23.00 to $22.00 and set a “buy” rating on the stock in a research note on Thursday, February 15th. One analyst has rated the stock with a hold rating and six have given a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $18.14.

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.