Where Have All the Energy Transfer LP (ET) Bears Gone?

Investors will get their next glimpse of ET’s Q4 earnings on February 20. Analysts are forecasting revenue to climb 28.5 percent to $14.7B in the next fiscal quarter, while earnings are seen soaring by nearly 32.14 percent to $0.37 per share. History has shown that shares in Energy Transfer LP have gone down on 2 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.32 per share, worse than the $0.55, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $14.5B, better than the $13.7B analysts expected. Earnings are estimated to increase by -149.4 percent this year, -2.99 percent next year and continue to increase by 17.39 percent annually for the next 5 years.

Energy Transfer LP (ET) will probably climb 47.16 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $28-month high price target. This represents a whopping 84.7 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $22, which represents a return potential of 45.12 percent when compared to the closing price of the stock of $15.16 on Monday, December 03. The lowest price target for the stock is $16 — slightly more than 5.54 percent from ET’s current share price.

The stock is currently hovering around the first support level of $14.85. Below this, the next support is placed in the zone of $14.55. Till the time, the ET stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.83 on daily chart, which may remain a cause for concern. If the price breaks below $14.55 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $15.38 mark may result into a pull-back move towards $15.61 level.

On 3rd of December, Energy Transfer LP (NYSE:ET) shares ended higher after a volatile session. The shares accumulated 0.59 points or 4.05 percent at $15.16 with a heavy trade volume of 9.613 million shares. After opening the session at $14.78, the shares went as high as $15.3 and as low as $14.77, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $40.1 billion and now has 2.65 billion shares outstanding. Energy Transfer LP (ET) stock has lost -4.23 percent of market value in 21 trading days.

ET stock has a trailing 3-year beta of 1.87, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.37 a share in the trailing twelve months. The stock’s value has fallen -12.17 percent year to date (YTD) against a decline of -7.67 percent in 12 month’s time. The company’s shares still trade -21.61 percent away from its 1-year high of $19.34 and 18.44 percent up from 52-week low of $12.80. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Energy Transfer LP (ET) are trading at a P/E ratio of 17.57 times earnings reported for the past 12 months. The industry ET operates in has an average P/E of 45.26. Its P/E ratio went as low as 12.36X and as high as 140.64 over the 5-year span. Further, it is sporting a 0.75 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.15. 22.5 percent is the gross profit margin for Energy Transfer LP and operating margin sits at 9 percent. Along with this, the net profit margin is 2.6 percent.

Let’s take a look at some insider activity at Energy Transfer LP (NYSE:ET) and see the pattern. The earliest insider trade took place on 11/19/2018. Warren Kelcy L gathered a total of 1 million shares of company at average share price of $14.93. The total for the purchase was set at $14.93 million. After this transaction, the CEO account balance stood at 241 million shares. The stock grew 1.54 percent since that insider purchase. On 11/13/2018, Warren Kelcy L, CEO, purchased 2 million shares at a price per share of $15.55. This added 31.1 million shares to the insider’s fortune and the stock saw a -2.51 percent retreat in value since the news became public. This transaction left 240 million shares in the CEO account.

On 11/12/2018, Director Davis Ray C performed a purchase transaction worth $4.99 million. This purchase at $15.8 each has added 316 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -4.05 percent decrease since the transaction was reported. The insider now is left with 87.89 million shares remaining in the account. Brannon Richard D, who performs the Director job, bought 100 thousand shares for $1.77 million. The acquisition occurred on 09/11/2018 was priced at $17.68 per share. The share price plunged -14.25 percent since the reporting date. Brannon Richard D now left with a stake of 172.62 thousand ET stock worth $2.62 million after the insider buying.