Kelcy Warren, Executive Chairman of Energy Transfer (ET), continues to pick up shares, with a 1.2 million share buy. The latest purchase increased his holdings by 0.4 percent, and came to a total cost of $14.8 million.
Warren last bought shares in mid-September, paying about where the stock trades today. Other insiders, including the company CFO, have been buyers earlier in the year as well. The last insider sale was a small one in 2020.
Company insiders own 19.8 percent of shares.
The oil and gas exploration company is up 35 percent in the past year, amid a strong market for energy. Earnings are up nearly 60 percent, with revenue up nearly 40 percent. Yet shares are still inexpensive at less than 8 times forward earnings.
Action to take: Investors may still like accumulating shares here.
Even with their recent rally, ET sports a high dividend yield of 8.6 percent. And the payout ratio is still under 75 percent of earnings, so there’s room for more yield hikes in the future.
For traders, the April 2023 $12 calls are an at-the-money trade, last going for about $1.05.
The option can deliver mid-to-high double-digit returns on a continued rally in shares in the coming months. Traders should look to take quick profits on a surge in oil prices.
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.