Why Should You Put Energy Transfer LP (NYSE: ET) On Your Portfolio?


Tortoise Capital Advisors LLC recently announced the acquisition of new stake in Energy Transfer LP (NYSE:ET). The institutional investor has increased its shareholding in the Energy company by 6.26% to 68.91 million shares with purchase of 4.06 million shares. This fresh investment now brings its stake to 2.56% valued currently at $451.39 million. In addition, Invesco Advisers, Inc. raised its holdings by 1.75 million to 61.79 million shares. And Neuberger Berman Investment Advis.. has lifted its position by 1.63% or 0.41 million shares – to 25.62 million shares.

With over 16.89 million Energy Transfer LP (ET) shares trading Monday and a closing price of $6.42 on the day, the dollar volume was approximately $108.45 million. The shares have shown a negative weekly performance of -2.87% and its price on 08/31/20 lost nearly -2.73%. Currently, there are 2.69B common shares owned by the public and among those 2.31B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for ET have a consensus price objective of $10.47. The analysts have set the share’s price value over the next 12 months at a high of $15.00 and a low of $6.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Energy Transfer LP stock is 1.90 for the next 12 months. The average price target is 43.29% above its last price level and an upside to the estimated low will see the stock lose -7.0% over that period. But an upside of 57.2% will see the stock hit the forecast high price target while mean target price for the stock is $10.00.

Insiders at the company have transacted a total of 71 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 66 of these insider trades were purchases, accounting for 13,892,804 shares. Insider sales of the common stock occurred on 5 occasions, with total insider shares sold totaling 307,877 shares.

The top 3 mutual fund holders in Energy Transfer LP are Alerian MLP ETF, Invesco Oppenheimer SteelPath MLP, and Invesco Oppenheimer SteelPath MLP. Alerian MLP ETF owns 50.2 million shares of the company’s stock, all valued at over $328.82 million. The company sold 16714.0 shares recently to bring their total holdings to about 1.86% of the shares outstanding. Invesco Oppenheimer SteelPath MLP bought 3.38 million shares to see its total holdings expand to 30.04 million shares valued at over $196.77 million and representing 1.12% of the shares outstanding. Invesco Oppenheimer SteelPath MLP sold -0.82 million shares to bring its total holdings to over 15.85 million shares at a value of $103.84 million. Invesco Oppenheimer SteelPath MLP now owns shares totaling to 0.59% of the shares outstanding.

Shares of Energy Transfer LP (NYSE: ET) opened at $6.58, down -$0.02 from a prior closing price of $6.60. However, the script later closed the day at $6.42, down -2.73%. The company’s stock has a 5-day price change of -2.87% and -22.74% over the past three months. ET shares are trading -49.96% year to date (YTD), with the 12-month market performance down to -52.83% lower. It has a 12-month low price of $3.75 and touched a high of $14.07 over the same period. Currently, 16.89 million shares have been traded, compared to an average intraday trading volume of 24.37 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.94%, -4.44%, and -28.84% respectively.

Institutional ownership of Energy Transfer LP (NYSE: ET) shares accounts for 43.20% of the company’s 2.69B shares outstanding. Mutual fund holders own 21.29%, while other institutional holders and individual stakeholders account for 24.53% and 11.21% respectively.

It has a market capitalization of $17.12B and a beta (3y monthly) value of 2.62. The stock’s trailing 12-month PE ratio is 12.59, while the earnings-per-share (ttm) stands at $0.51. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.24% over the week and 3.33% over the month.

Analysts forecast that Energy Transfer LP (ET) will achieve an EPS of $Energy Transfer LP for the current quarter, $6.43 for the next quarter and $Stocks for Type. The lowest estimate earnings-per-share for the quarter is $ARK Innovation ETF while analysts give the company a high EPS estimate of $Etsy, Inc. Comparatively, EPS for the current quarter was $NET a year ago. Earnings per share for the fiscal year are expected to increase by 1.60%, and 106.45% over the next financial year. EPS should shrink at an annualized rate of -6.90% over the next five years, compared to 19.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Energy Transfer LP (ET) as a “Strong Buy” at a consensus score of 1.90. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 7 of the 20 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ET, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Outperform rating for the stock in a research note on July 27, 2020, with the firm’s price target at $11-$10. Wells Fargo coverage for the Energy Transfer LP (ET) stock in a research note released on July 22, 2020 offered a Equal Weight rating with a price target of $8. BMO Capital Markets was of a view on June 09, 2020 that the stock is Outperform, while Wolfe Research gave the stock Peer Perform rating on April 13, 2020, issuing a price target of. Barclays on their part issued Equal Weight rating on March 24, 2020.


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