Energy Transfer (NYSE:ET) Shares Up 1.6% Following Dividend Announcement

Energy Transfer LP (NYSE:ET) shares were up 1.6% on Tuesday after the company announced a dividend. The stock traded as high as $20.25 and last traded at $20.2310. Approximately 11,375,413 shares traded hands during trading, a decline of 17% from the average daily volume of 13,717,604 shares. The stock had previously closed at $19.91.

The newly announced dividend which will be paid on Wednesday, August 19th. Shareholders of record on Friday, August 7th will be paid a $0.34 dividend. This is a boost from Energy Transfer’s previous quarterly dividend of $0.34. This represents a $1.36 annualized dividend and a yield of 6.7%. The ex-dividend date of this dividend is Friday, August 7th. Energy Transfer’s payout ratio is presently 112.50%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on ET. Citigroup reaffirmed a “buy” rating and set a $23.00 price objective (up from $22.00) on shares of Energy Transfer in a research note on Thursday, May 7th. Zacks Research raised Energy Transfer from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. TD Cowen reissued a “buy” rating and issued a $24.00 target price (up from $23.00) on shares of Energy Transfer in a research note on Thursday, July 16th. Scotiabank restated an “outperform” rating on shares of Energy Transfer in a report on Tuesday, May 12th. Finally, Barclays restated an “overweight” rating and set a $23.00 price target (up from $22.00) on shares of Energy Transfer in a research report on Thursday, May 14th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $23.50.

Energy Transfer Trading Up 1.6%

The stock’s fifty day moving average price is $19.54 and its 200 day moving average price is $19.02. The stock has a market cap of $69.62 billion, a P/E ratio of 16.86, a PEG ratio of 1.18 and a beta of 0.55. The company has a current ratio of 1.17, a quick ratio of 0.93 and a debt-to-equity ratio of 1.50.

Energy Transfer (NYSE:ET) last announced its quarterly earnings data on Tuesday, May 5th. The pipeline company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.05). Energy Transfer had a return on equity of 9.77% and a net margin of 4.66%.The business had revenue of $27.77 billion during the quarter, compared to analysts’ expectations of $25.78 billion. During the same quarter last year, the company posted $0.36 EPS. Energy Transfer’s revenue for the quarter was up 32.1% compared to the same quarter last year. Equities research analysts expect that Energy Transfer LP will post 1.43 earnings per share for the current year.

Key Energy Transfer News

Here are the key news stories impacting Energy Transfer this week:

• Positive Sentiment: An analyst upgraded Energy Transfer to Strong Buy, citing reduced project-execution risk, approximately 20% year-over-year EBITDA growth to about $4.9 billion and higher full-year EBITDA guidance of roughly $18.4 billion to $18.6 billion. NGL debottlenecking projects and the Hugh Brinson Pipeline are reportedly ahead of or on schedule, potentially supporting additional EBITDA growth. Energy Transfer: Strong Buy On A Quiet Multiple, A Loud Guidance Raise
• Positive Sentiment: Energy Transfer announced its 19th consecutive quarterly cash-distribution increase, raising the payment to $0.34 per common unit, or $1.36 annualized. The distribution is payable August 19 to unitholders of record on August 7, reinforcing the stock’s income appeal with a yield of approximately 6.8%. Energy Transfer Announces Nineteenth Consecutive Increase in Quarterly Cash Distribution
• Positive Sentiment: Another bullish analysis expects distribution growth to accelerate, projecting a 2027 payout of $1.416 per unit and a yield above 7%. It also notes that leverage of 3.85 times EBITDA is below management’s 4.0–4.5 times target range. Energy Transfer: A 7% Yield With Upsizing Distribution Growth On The Horizon
• Neutral Sentiment: Energy Transfer was highlighted as a low-beta, defensive stock that may appeal to investors amid market uncertainty and higher oil prices. Zacks.com Featured Highlights Include Energy Transfer
• Negative Sentiment: Leverage remains higher than that of some midstream peers, which may limit valuation expansion and explains why investors continue to demand a relatively high distribution yield.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Keybank National Association OH raised its stake in Energy Transfer by 0.3% during the first quarter. Keybank National Association OH now owns 219,232 shares of the pipeline company’s stock valued at $4,231,000 after buying an additional 556 shares during the last quarter. Mountain Capital Investment Advisors Inc. grew its stake in shares of Energy Transfer by 4.9% in the fourth quarter. Mountain Capital Investment Advisors Inc. now owns 12,007 shares of the pipeline company’s stock worth $216,000 after acquiring an additional 560 shares during the last quarter. Marks Wealth LLC increased its holdings in shares of Energy Transfer by 4.7% during the fourth quarter. Marks Wealth LLC now owns 12,560 shares of the pipeline company’s stock valued at $207,000 after acquiring an additional 560 shares in the last quarter. Citizens Financial Group Inc. RI increased its holdings in shares of Energy Transfer by 2.4% during the first quarter. Citizens Financial Group Inc. RI now owns 23,978 shares of the pipeline company’s stock valued at $463,000 after acquiring an additional 562 shares in the last quarter. Finally, Avos Capital Management LLC raised its position in shares of Energy Transfer by 0.8% in the 4th quarter. Avos Capital Management LLC now owns 76,695 shares of the pipeline company’s stock worth $1,265,000 after purchasing an additional 583 shares during the last quarter. Institutional investors own 38.22% of the company’s stock.

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.