Thomas Long, Co-CEO of Energy Transfer LP (ET), recently bought 80,546 more shares. The buy increased his holdings by just over 5 percent, and came to a total purchase price of just over $600,000.
He was joined by a cluster of other buyers, including the company CFO who bought 67,121 shares, paying just over $500,000. The company COO bought 33,561 shares, and the firm’s executive chairman bought 16,191,39 shares, a $120 million commitment.
Insiders own 11.2 percent of the company overall. The natural gas pipeline and storage company has seen shares rally slightly under the rate of the S&P 500 in the past year. Mild winter weather (so far) has helped shares gradually decline over the past few months after a big rally to start off the year.
Action to take: The company trades for less than 6 times earnings, and as an LP offers a 7.2 percent dividend. So it’s possible prices stabilize here before the worst winter weather of the season settles in. Investors could do well catching a rebound with a big dividend as well.
For traders, the April $10 calls have the rest of the winter season to play out. Last trading for about $0.28, they offer big upside return on a move higher in shares should cold weather lead to a rally in natural gas plays.
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.