Insider Activity Report: Energy Transfer (ET)

Marshall McCrea, Co-CEO at Energy Transfer (ET), recently added 50,000 shares. The buy increased his holdings by 1 percent, and came to a total cost of $682,000.

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  • The buy comes a week after an EVP bought 10,000 shares for $130,000. And two weeks after the company’s Chairman of the Board bought 3,000,000 shares for $38.9 million. Over the past two years, there have been over two dozen insider buys, with zero insider sales.

    Overall, Energy Transfer insiders own 17.2 percent of shares.

    The stock has had a boost in recent weeks as oil prices have broken higher. Typically, oil prices pull back a bit after the summer driving season.

    While Energy Transfer is up 20 percent over the past year, shares are still coming off the weakness in the space, with a 30 percent drop in revenues and earnings. However, shares of the pipeline company look cheap at 8 times forward earnings.

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  • Action to take: Investors interested in the latest boom in energy prices looking for income would fare well here. The limited partnership pays out 9.2 percent, although the payout is considered a distribution that comes with a K-1 tax form each year.

    For traders, shares are in an uptrend that looks ready to continue. The January 2024 $14.00 calls, last going for about $0.42, could see mid-to-high double-digit returns in the months ahead on a further rally.


    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 of the companies mentioned in this article.

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