Energy Transfer LP (NYSE: ET) stock fell -0.44% on Friday to $11.27 against a previous-day closing price of $11.32. With 17.71 million shares changed hands, the volume of the stock remained lighter than its average volume of 22.29 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $11.37 whereas the lowest price it dropped to was $11.20. The 52-week range on ET shows that it touched its highest point at $12.48 and its lowest point at $7.96 during that stretch. It currently has a 1-year price target of $15.33. With its current market cap of 33.67 billion, ET has annualized dividend of $0.92 while the current yield stands at 8.16%. Beta for the stock currently stands at 1.89.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ET was up-trending over the past week, with a rise of 5.82%, but this was up by 12.48% over a month. Three-month performance dropped to -0.09% while six-month performance rose 17.76%. The stock gained 16.19% in the past year, while it has gained 36.94% so far this year. A look at the trailing 12-month EPS for ET yields 1.06 with Next year EPS estimates of 1.62. For the next quarter, that number is 0.36. This implies an EPS growth rate of 889.10% for this year and 8.82% for next year. EPS is expected to decline by -11.98% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.10%.
Float and Shares Shorts:
At present, 3.08 billion ET shares are outstanding with a float of 2.48 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 100.1 million, which was 3.24% higher than short shares on Jun 14, 2022. In addition to Mr. Marshall S. McCrea III as the firm’s Co-CEO & Director of LE GP, LLC, Mr. Thomas E. Long serves as its Co-CEO & Director of LE GP, LLC.
Through their ownership of 39.55% of ET’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 23.91% of ET, in contrast to 20.00% held by mutual funds. Shares owned by individuals account for 12.47%. As the largest shareholder in ET with 3.32% of the stake, Harvest Fund Advisors LLC holds 102,371,533 shares worth 102,371,533. A second-largest stockholder of ET, ALPS Advisors, Inc., holds 64,578,507 shares, controlling over 2.09% of the firm’s shares. Invesco Advisers, Inc. is the third largest shareholder in ET, holding 61,985,076 shares or 2.01% stake. With a 1.84% stake in ET, the Alerian MLP ETF is the largest stakeholder. A total of 56,867,264 shares are owned by the mutual fund manager. The Invesco SteelPath MLP Income Fund, which owns about 1.15% of ET stock, is the second-largest Mutual Fund holder. It holds 35,360,951 shares valued at 352.9 million. Kayne Anderson MLP/Midstream Inve holds 0.48% of the stake in ET, owning 14,774,888 shares worth 147.45 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, ET reported revenue of $20.49B and operating income of $2.15B. Over the past year, revenue came in at $70.91B while operating income stood at $6.57B. It generated $1.27B net income for the quarter, which came to $3.45B over the last twelve months. The EBITDA in the recently reported quarter was $3.25B and diluted EPS was $0.37. EBITDA for the full year was $11.13B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ET since 18 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ET analysts setting a high price target of $20.00 and a low target of $13.00, the average target price over the next 12 months is $15.31. Based on these targets, ET could surge 77.46% to reach the target high and rise by 15.35% to reach the target low. Reaching the average price target will result in a growth of 35.85% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ET will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $2.02 being high and $1.15 being low. For ET, this leads to a yearly average estimate of $1.49. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Energy Transfer LP surprised analysts by $0.07 when it reported $0.37 EPS against a consensus estimate of $0.30. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.54 and the low estimate is $0.24. The average estimate for the next quarter is thus $0.35.
Summary of Insider Activity:
Insiders traded ET stock several times over the past three months with 4 Buys and 0 Sells. In these transactions, 137,680 shares were bought while 0 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 6 over the past year. The total number of shares bought during that period was 23,108,180 while 398,632 shares were sold.