Kelcy Warren, a director at Energy Transfer (ET), recently bought 3,000,000 shares. The buy increased his stake by just over 1%, at a cost of $47 million.
He was joined by the company’s Co-CEO, who bought 20,000 shares, paying $313,600. The buy increased his stake by less than 1%. The transactions mark the first insider buys of 2024. Going further back, company insiders were buyers throughout the last two years, with no insider sales.
Overall, Energy Transfer insiders own 10% of shares.
The oil and gas exploration company is up 24% in the past year, about in-line with the overall market.
Shares still trade at 10 times forward earnings, which surged 44% over the past year, even amid a slow market for the energy space. Pipelines and energy storage remain a key necessity, even with energy prices trending flat.
As an LP, Energy Transfer pays out most of its earnings as dividends. At current prices, shares pay a hefty 8% yield.
Action to take: Investors looking for current income may like shares here. However, as an LP, additional tax considerations may apply.
For traders, shares have been trending higher over the past year. The December $16 calls, last trading for about $0.68, could see high double-digit returns on a further rally in shares into year-end.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
