Energy Transfer LP (NYSE:ET) Shares Forecast: The Numbers Look Good?

Stock analysts at Morgan Stanley, assumed coverage of shares of Energy Transfer LP (NYSE:ET) with Overweight recommendation, according to their opinion released on January 06. Analysts at Raymond James issued an upgrade for the stock to Strong Buy from previous rating of Outperform, in a research note that dated back to April 16.

Let’s take a glimpse at some insider activity at Energy Transfer LP (NYSE:ET) and observe the pattern. The earliest insider trade happened on 12/17/2019. Brannon Richard D gathered a total of 100 thousand shares of the firm at average share price of $12.79. The total amount for the purchase was set at $1.28 million. On completing this exchange, the Director account balance was 288.93 thousand shares. The stock grew 2.81 percent from that insider purchase. On 11/19/2019, WARREN KELCY L, CEO, did a purchase of 3.97 million shares at a price of $11.37 per share. This increased 45.13 million shares to the insider’s fortune and the stock experienced a 15.66 percent rally in price since the news became public. This exchange saw 252 million shares get into the CEO account. On 11/14/2019, CFO Long Thomas E recorded a purchase transaction valued at $200.7 thousand. The purchase at $11.15 a share has added 18 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 17.94 percent increase since the transaction reporting date. The company insider is left with 517.7 thousand shares remaining in the account. Mason Thomas P, who works as EVP and General Counsel at the company, performed a sale of 75 thousand shares in a transaction worth $1.05 million. The disposal recorded on 06/17/2019 was priced at $13.97 per share. The stock price plunged -5.87 percent since the transaction. Mason Thomas P currently holds a stake of 907.96 thousand in ET stock which is worth $11.94 million after the insider selling.

The stock is lingering around the initial support level of $12.76. After this, the following support is at the zone of $12.63. Up until the time the ET stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 56.52 on the daily chart, and this may be a cause for concern. In case the price goes below $12.63 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $13 level may cause a pull-back move approaching $13.12 mark.

In the recent trading session, Energy Transfer LP (NYSE:ET) shares gained 2.06% or 0.27 points to reach at $13.15 with a thin trading volume of 7.563 million shares. It opened the trading session at $12.91, the shares rose to $12.995 and dropped to $12.75, the range by which the price of stock traded the whole session. The company now has a market cap of $35.1 billion and currently has 2.73 billion outstanding shares. Energy Transfer LP (ET) stock has plunged -4.94 percent of market value in 21 trading days.

ET stock’s trailing 3-year beta is 1.58, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.23 share in the trailing 52 weeks. The stock’s value surged 0.39 percent year to date (YTD) compared to a decline of -14.59 percent in 52 week’s period. The firm’s shares are still trading -17.74 percent below its 1-year high of $15.98 and 21.32 percent up from 52-week low of $10.84. The average consensus ranking on the company is 1.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Energy Transfer LP (ET) shares are trading at a P/E ratio of 10.27 times earnings posted in the trailing 12 months. The industry ET deals with has an average P/E of 15.57. Its P/B ratio is standing at 1.59X compared to the 3.99 industry average. It is additionally sporting a 0.64 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.37. Energy Transfer LP has a 26.4% gross profit margin, with its operating margin around 12.9%. Alongside this, the company’s net profit margin currently stands at 5.9%.

Past records have indicated that shares in Energy Transfer LP rose on 4 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of ET’s Q4 earnings on February 19. Analysts are predicting revenue to suffer decline of -4 percent to $13B in the financial fourth quarter, while EPS will soar by about 33.33 percent to $0.36 per share. In the last quarter, it’s earnings of $0.32 per share came worse than the $0.35544, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $13.57B, missing the $14.67B analysts had expected. Earnings are seen to rise by 325.8 percent this year, 8.5 percent in the coming year and the trend continues by 16.5 percent every year in the next 5 years.